IRS doles billions in tax credits to ‘undocumented workers’

Tina Korbe

Individuals who are not authorized to work in the United States (i.e. immigrants in the country illegally) last year collected $4.2 billion in tax refunds from the Internal Revenue Service, according to a new audit from the Treasury Inspector General for Tax Administration (TIGTA).

A little something called the Additional Child Tax Credit is to blame. The audit explains (emphasis mine):

Many individuals who are not authorized to work in the United States, and thus not eligible to obtain a Social Security Number (SSN) for employment, earn income in the United States.  The Internal Revenue Service (IRS) provides such individuals with an Individual Taxpayer Identification Number (ITIN) to facilitate their filing of tax returns.  Although the law prohibits aliens residing without authorization in the United States from receiving most Federal public benefits, an increasing number of these individuals are filing tax returns claiming the Additional Child Tax Credit (ACTC), a refundable tax credit intended for working families.  The payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives.

When the author of the audit states “an increasing number” of illegal immigrants are claiming the ACTC, he’s not kidding. Claims for the credit have increased five-fold, from $924 million in 2005 to $4.2 billion last year…

The article continues at

Comments are closed.