WASHINGTON, Dec. 19, 2017 /PRNewswire-USNewswire/ -- A Center for Immigration Studies analysis of the conference report of the "Tax Cuts and Jobs Act" examines the tax credit implications for illegal aliens. Presently, illegal alien parents who file tax returns receive billions of dollars in Additional Child Tax Credits (ACTC), even if they do not actually pay any taxes. With passage of the tax bill, the children of illegal alien parents must have valid Social Security numbers (SSN) to qualify for the credit, though the adult ACTC claimant will still not need one.
Congress thus takes a step toward not paying illegal aliens federal dollars to stay in the United States through refundable tax credits. Currently, an illegal alien, even with a shaky Social Security number or an ITIN (individual tax identification number created for tax filers without Social Security numbers), may claim the up-to-$1,000-a-head payments even though the kids only have ITINs, which are not proof of legal residence (as SSNs are).
David North, a Center fellow and author of the analysis, said, "What is needed, of course, is a law or an IRS ruling that says if a filer's SSN does not match with a legally obtained one, there will be no refunds. None. But this bill does take one big step towards ending a huge welfare benefit that illegal aliens have received for years."
View the entire analysis at: https://cis.org/North/Congress-Takes-Step-Against-Paying-Illegal-Aliens-Stay-US
The new system applies to tax returns filed in 2019, and once in place it is estimated that the savings will be around $3.9 billion a year.
The bill did not make all the needed changes in this area, however; the smaller non-refundable child tax credit, as well as another credit for higher education expenses, are still available to those without SSNs.
Contact: Marguerite Telford
SOURCE Center for Immigration Studies