Why Were They Getting Them in the First Place? Bessent Cracks Down on Tax Credits for Illegal Aliens

Sometimes you read about a crackdown on benefits received by illegal aliens and think to yourself, “Wait, how were they getting these things in the first place? I thought they were here illegally?”

That’s what first occurred to me when I read about these “refundable tax credits,” but the good news is that Treasury Secretary Scott Bessent is nipping them in the bud and aiming to save American citizens $3 billion.

Under @POTUS, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and @USTreasury is enforcing it. American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.

The proposed move is aimed at four benefits that should be reserved for Americans:

The Treasury Department and IRS unveiled new rules on Wednesday to tighten the requirements for the adoption, child, American opportunity, and earned income tax credits so that only US citizens, US nationals, and qualified aliens can get them.

The four tax credits named are refundable, which means people with a larger credit than the taxes they owe get a refund. On Treasury’s official website, the Internal Revenue Service head said in a statement titled “Treasury, IRS Propose Rules to Protect Refundable Tax Credits from Abuse by Illegal Aliens,” that the credits were intended to help American families, not people here unlawfully.

“Refundable tax credits, like the Earned Income Tax Credit (EITC), were enacted to help low-to-middle income American families and workers receive critical financial support,” said IRS Chief Executive Officer Frank J. Bisignano. “Today's proposed regulations ensure that federally funded benefits are reserved for eligible taxpayers and protect the integrity of every taxpayer dollar.”

Approximately one million illegals would be affected and would therefore be ineligible to take advantage of the credits.

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The proposed regulations are available here, but here’s the breakdown of who will be eligible if the regulations are approved:

The taxpayer must be a U.S. citizen, U.S. national, or qualified alien on the date the taxpayer files the federal income tax return first claiming the affected credit. Qualified aliens include lawful permanent residents, asylees, refugees, and certain other groups defined or specified under PRWORA [Personal Responsibility and Work Opportunity Reconciliation Act of 1996].

The taxpayer must declare on the tax return, under penalty of perjury, that the taxpayer is eligible to receive the refunded portion of the credit.

For a joint return, only one spouse must be a U.S. citizen, U.S. national, or qualified alien.

On the internet, numerous posters are wondering the same thing I did: why on earth were they getting them in the first place?

Rome wasn’t built in a day, however, and fundamentally altering how we deal with illegal aliens takes time. This is another solid brick in the wall.