En esta noticia
The Department of the Treasury and the Internal Revenue Service (IRS) proposed new regulations to determine who can receive the refundable portion of certain federal tax credits.
This proposal does not eliminate the credits for all foreigners nor does it mean an immediate disappearance of benefits, but it suggests that in order to receive the refundable portion the taxpayer will have to prove that they belong to one of the immigration categories covered by the law and officially declare that they meet all requirements.
Which foreigners could be affected by the new measure
The proposal indicates that, in order to receive the refundable portion of the affected credits, the taxpayer must be a U.S. citizen, U.S. national, or qualified alien at the time of filing the federal return on which the credit is claimed.
Among the categories of qualified aliens mentioned are
- Lawful permanent residents of the United States
- People granted asylum
- Refugees
- Certain other groups defined or specified by PRWORA legislation
In addition, the taxpayer should declare on their tax return and under penalty of perjury that they are entitled to receive the credit they claim.
In joint returns, these requirements would apply to one or both spouses.
What tax credits are included in the proposal
The initiative seeks to carry over the restrictions established by the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 to the following credits
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC)
- American Opportunity Tax Credit (AOTC)
- Adoption Tax Credit
The measure focuses specifically on the portion of these credits that is translated into a refund.
Essential information about this initiative
It is important to note that this is still only a proposal. The Treasury and the IRS will receive public comments and requests for a hearing.
If they are eventually approved and published as final regulations, an official announcement will be made confirming when they take effect.
“The proposed regulations would apply to tax years ending on or after the date they are published as final regulations,” the IRS said.