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 under a sweeping new interpretation of a 1996 law.

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 an average loss of $3,000 per year—between $700 million and $2.6 billion taken out of family budgets. 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.

The proposal would 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. These families will face increased hardship, and whole communities will feel the economic impacts.

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—please personalize this comment to share about the impact these changes could have on lawfully present immigrants in your community.

Click “Start Writing” to submit a public comment demanding that the U.S. Treasury and IRS withdraw this harmful rule.