The Internal Revenue Service posted a set of proposed regulations prohibiting undocumented immigrants from receiving much of the money from refundable tax credits such as the Earned Income Tax Credit, the Child Tax Credit, the Adoption Tax Credit and the American Opportunity Tax Credit.
The proposed regulations aim to apply and clarify a federal law passed in 1996, the Personal Responsibility and Work Opportunity Reconciliation Act, under the Clinton Administration. But they also reflect the priorities of the new administration, which has sought to curb illegal immigration through increased enforcement by Immigration and Customs Enforcement, as well as provisions in the One Big Beautiful Bill Act.
Under the Personal Responsibility and Work Opportunity Reconciliation Act, only U.S. Citizens, U.S. Nationals, and Qualified Aliens are eligible to receive federal public benefits.
The proposal unveiled Wednesday uses a legal analysis by the Justice Department’s Office of Legal Counsel concluding that the refunded portions of the affected credits are federal public benefits.
To receive the refunded portion of an affected credit, a taxpayer must…
1 – Be a U.S. Citizen, U.S. National, or Qualified Alien on the date the taxpayer files the federal income tax return first claiming the credit. Qualified aliens include lawful permanent residents, asylees, refugees and certain other groups defined or specified under PRWORA.
2 – Declare on the tax return, under penalty of perjury, that the taxpayer is eligible to receive the refunded portion of the credit.
3 – For a joint return, only one spouse must be a U.S. Citizen, U.S. National or Qualified Alien.
Only the refunded portion of the affected credits would be treated as a federal public benefit.
A taxpayer who is not qualified to receive the refunded portion could still claim any portion of an affected credit for which the taxpayer otherwise qualifies that generally offsets income tax liability. However, the proposed rules are likely to severely limit the size of the benefit for many recipients.
The proposed regulations would apply to tax years ending on or after the date the regulations are published as final regulations.
Even though this is just a proposal at this time, you know they’re going to push this through. They normally only float tax proposals to soften the blow once it goes into place.
Let me leave you with this…
The Illinois Tollway Board’s unanimous Wednesday vote to raise fares for the first time in nearly 15 years is expected to bring in an extra $1B each year. The agency says that the money is needed to fund an expanding portfolio of construction projects.
The new toll rates start Jan. 1.
The hike is 45 cents per passenger vehicle at the most common toll plaza, which charges 75 cents. That toll will become $1.20, a 60% jump.
But the toll hike varies between 50% and 66% among plazas that charge more or less than that. For commercial vehicles, tolls will increase an average of 30%.
In an unprecedented move, the board also voted to raise future toll rates automatically every two years, tied to the rate of inflation. Those increases would begin in 2029.
toll hikes would match changes to the consumer price index but would be capped at 8%. The increase, was made possible by the state’s new transit funding law, which Gov. Pritzker signed last year.
When does it end? How many residents need to leave our state before they stop this madness?
I’m a born and bred Chicagoan who was born in Old Town, raised in Ravenswood, and lives in Sauganash. I can remember when the toll on the Skyway was a quarter.
Now it’s $8.10. Does this mean that with a 60% increase it will go up to $12.96?
And the people leaving Illinois are mostly the One Percenters who pay the taxes that keep the state open. Who’s going to pay for all of this once they’re gone?
Will Illinois need to go bankrupt before they learn from this insanity?
I guess time will tell.
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