US moves to bar some immigrants from 4 refundable tax credits
What's new: The proposal could cut off benefits for asylum applicants, TPS holders and DACA recipients with work authorization.
The Treasury Department and Internal Revenue Service proposed rules Wednesday that would treat the refundable portions of four tax credits as federal public benefits, a change that would block many noncitizens from claiming them. The move would affect the adoption tax credit, child tax credit, American Opportunity tax credit and earned income tax credit. Tax analysts said the proposal could hit hundreds of thousands to several million people, especially lower earners. Those potentially affected include immigrants with pending asylum claims, Temporary Protected Status and Deferred Action for Childhood Arrivals who have Social Security numbers and permission to work in the United States.