Illegal Aliens Eligible for Up To Eight Refundable Tax Credits

Illegal [alien] immigrants are eligible to claim up to eight refundable tax credits under federal law, according to a report from the Congressional Research Service.

One of the tax credits available to illegal immigrants under the Internal Revenue Code is the additional child tax credit, which allows families with children to reduce their tax liability by $1,000 per child. If the value exceeds the tax liability they owe, the family receives a refund for the difference.

“The Tax Inspector General of Treasury says that the extra child tax credit, in a single year, doles out $4.2 billion a year to illegals,” said David North, a fellow at the Center for Immigration Studies. “Based on that number I would assume that other tax credits for illegals runs well over $5 billion a year.”

In addition, illegal immigrants [aliens] are eligible for the earned income tax credit, which allows low-income families to receive a refundable tax credit even if they do not owe any taxes.

They are also eligible for the American Opportunity Tax Credit, which is a tax credit for tuition, and the Health Coverage Tax Credit, which is a tax credit for insurance costs. Undocumented immigrants can also receive a tax credit for tax withheld on wages, for fuel excise taxes, any overpayment of taxes, and tax withheld at source for nonresident aliens and foreign corporations.

Refundable credits can be larger than an individual’s tax liability, which means that illegal immigrants may receive the difference as a cash payment from the IRS...

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