John,

The Trump administration is trying to strip refundable tax credits from hundreds of thousands of immigrant taxpayers who work, pay taxes, and currently meet federal tax-law requirements.

The Treasury Dept. and IRS have proposed asking lower-income taxpayers about their immigration status on their tax forms for the first time in order to take away the refundable portions of the Earned Income Tax Credit, Child Tax Credit, American Opportunity Tax Credit, and Adoption Tax Credit from families across the country.¹

The practical effect would be devastating for many lawfully present immigrants, including DACA recipients, people with Temporary Protected Status, asylum applicants with work authorization, and U and T visa holders.

Treasury and the IRS estimate that between 200,000 and 700,000 taxpayers could lose credits under the rule, with between $700 million and $2.6 billion taken out of family budgets² —an average loss of $3,000 per household per year at a time when many are struggling to make ends meet. Some families with U.S. citizen children could lose thousands of dollars they rely on to afford food, housing, utilities, child care, education, and other necessities. These families will face increased hardship, and whole communities will feel the economic impacts.

Submit a public comment now demanding that the Treasury Dept. and IRS withdraw this harmful rule and stop taking tax credits away from immigrant families.

The proposal would also require taxpayers seeking refundable tax credits to certify that they are a U.S. citizen, U.S. national, or “qualified alien” under penalty of perjury. That could create fear and confusion among immigrant families and discourage even eligible taxpayers from claiming credits they are entitled to receive.

The Treasury Dept. and IRS are accepting public comments through October 5, 2026. They need to hear directly from people across the country about the real harm this proposal would cause.

Submit a comment now and demand the Treasury and the IRS withdraw this harmful rule now.

Thank you for taking action to protect the economic security of immigrant families.

-The CHN Action Team

¹ Five Things to Know About the Trump Administration’s New Effort to Deny Tax Credits to Lawfully Present Immigrants - Coalition on Human Needs  
² FAQ: The Federal Government Wants to Deny Refundable Tax Credits to Many Immigrants - NILC

-- MEREDITH'S EMAIL --

John,

The Trump administration is trying to take tax credits away from immigrant families who work, pay taxes, and currently qualify for them. The U.S. Treasury and the IRS have proposed a new rule denying the refundable portions of 4 major tax credits to many lawfully present immigrants.^{1 2}

Their own estimate says 200,000 to 700,000 taxpayers could lose refundable credits, with an average loss of $3,000 per year per family—between $700 million and $2.6 billion taken out of family budgets. That is money families use for groceries, rent, child care, utilities, and other basic needs.

The proposal targets the refundable portions of the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), American Opportunity Tax Credit, and Adoption Tax Credit. Those harmed could include DACA recipients, people with Temporary Protected Status, asylum applicants with work authorization, and other lawfully present immigrants.^{3 4}

Families with children who are U.S. citizens could lose thousands of dollars. The Treasury Dept. and the IRS are trying to impose these new restrictions by applying a sweeping interpretation of a nearly 30-year-old tax law for which Congress has separately established eligibility rules.

Submit a public comment and tell the Treasury Dept. and IRS to withdraw this harmful proposal.

The rule would also require taxpayers claiming refundable credits to certify that they are a U.S. citizen, U.S. national, or “qualified alien” under penalty of perjury. Advocates warn that this complicated new requirement could create fear and confusion even among families who remain eligible.

The harm could extend beyond federal taxes. Many states tie their own Earned Income Tax Credits to federal rules, meaning some families could lose state tax benefits too.

Refundable tax credits help families with low incomes afford necessities, raise children, and pursue higher education. Taking millions of dollars from families already struggling with high costs would only make it harder to make ends meet. Instead of going beyond Congressional intent and taking away access to the CTC, policymakers should ensure that all families have access to meaningful support via regular payments[5] along with access to basic needs programs.

This proposal has not been finalized. Treasury and the IRS are accepting public comments through October 5, giving us an opportunity to build overwhelming opposition before the rule can take effect.

Tell the Treasury Department and the IRS: Withdraw this proposal and protect refundable tax credits for families who qualify.

Thank you for all you do,

Meredith Dodson
Senior Public Policy Director, CHN Action

¹ Proposed Treasury and IRS rule
² Treasury, IRS move to restrict refundable tax credits to certain immigrants
³ Five Things to Know About the Trump Administration’s New Effort to Deny Tax Credits to Lawfully Present Immigrants
⁴ The Federal Government Wants to Deny Refundable Tax Credits to Many Immigrants
⁵ Child Allowance Principles - Automatic Benefit for Children