Treasury plans to change tax credit eligibility in a move critics say will hurt immigrant taxpayers [View all]

Source: AP

Updated 9:12 PM EST, November 20, 2025


WASHINGTON (AP) — The U.S. Treasury Department said Thursday it plans to reclassify certain refundable tax credits as “federal public benefits,” which will bar some immigrant taxpayers from receiving them, even if they file and pay taxes and would otherwise qualify.

Tax experts say immigrants brought to the U.S. illegally by their parents as children, known as DACA (Deferred Action for Childhood Arrivals) recipients, and immigrants with Temporary Protected Status are most likely to be affected by the planned change. Foreign workers and student visa holders as well as some families with children who are U.S. citizens could also be affected, depending on how the rule is written, they say.

The Treasury Department’s announcement was the latest sign of how the Trump administration has been taking a “ whole of government ” approach when it comes to immigration enforcement and looking to departments across the federal government — not just Homeland Security — to come up with ways to help carry out the president’s hardline immigration agenda.

The Treasury said in its announcement that it plans to craft new rules affecting the refunded portions of certain individual income tax credits, including the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit and the Saver’s Match Credit.

Read more: https://apnews.com/article/treasury-immigration-tax-credits-trump-58d614b31f6f8322629df715bd38d380