What tax credits and deductions can undocumented immigrants access, such as the Child Tax Credit or EITC?
Executive summary
Federal law and IRS rules currently bar most undocumented immigrants from claiming the federal Earned Income Tax Credit (EITC) and generally limit Child Tax Credit (CTC) eligibility unless qualifying children have valid Social Security numbers; some state credits and limited federal provisions have been more inclusive [1] [2] [3]. The Treasury and Justice Department have moved to reclassify the refundable portions of several credits — including the EITC, Additional Child Tax Credit (ACTC), American Opportunity Tax Credit (AOTC), Premium Tax Credit and Saver’s Match — as “federal public benefits,” a change advocates say would further restrict immigrant access and could affect DACA, TPS and other groups [4] [5].
1. Who can use ITINs — and what that actually gets you
Undocumented taxpayers can and do file federal returns with an Individual Taxpayer Identification Number (ITIN), and ITINs are explicitly for tax reporting only — they do not grant work authorization or entitle holders to Social Security benefits [6] [7]. Filing with an ITIN lets people comply with tax law but does not, by itself, make them eligible for many federal refundable credits that require Social Security numbers for filers, spouses or children [7] [2].
2. The EITC: broadly closed to undocumented workers at the federal level
Under current federal rules, the EITC requires qualifying taxpayers, spouses (if filing jointly) and qualifying children to have Social Security numbers valid for employment; undocumented workers who lack such SSNs are excluded from the federal EITC [8] [1]. States can and have diverged: several states (and California in particular) have created state-level EITCs or adjustments that allow ITIN filers to claim similar benefits — California’s CalEITC was expanded to include ITIN filers in recent state law changes [3] [9].
3. The Child Tax Credit: mixed-status households have been able to claim ACTC for U.S.-born kids — but rules are tightening
Federal Child Tax Credit rules allow a parent who files with an ITIN to claim the credit only if the qualifying child has an SSN valid for employment; that design has historically allowed mixed-status families (U.S.-born children, undocumented parents) to claim the refundable Additional Child Tax Credit (ACTC) for eligible U.S.-citizen children [2] [10]. Legislative proposals and administrative moves would tighten those requirements — and the Treasury has signaled it will treat refunded portions of the CTC as “public benefits,” which advocates warn could bar some noncitizen filers and complicate immigration cases [4] [11] [12].
4. Other credits (AOTC, Saver’s Match, Premium Tax Credit): emerging exclusions
Treasury and Justice Department analyses specifically mention the refundable portions of the American Opportunity Tax Credit and the Saver’s Match as targets for reclassification as federal public benefits; the Saver’s Match was designed as a match to retirement savings beginning in 2027 and the guidance could declare undocumented taxpayers ineligible [4] [5]. The Treasury’s announced interpretation also includes the Premium Tax Credit among those being reconsidered [4].
5. What the reclassification means in practice — public-charge and access risks
Treasury’s planned reclassification would treat refunded tax credits as “federal public benefits” under the 1996 Personal Responsibility and Work Opportunity Reconciliation Act; if finalized, advocates warn that DACA recipients, TPS holders, students on visas, H‑1B families and mixed-status households could lose access to refunds or face new immigration consequences tied to public‑benefit rules [4] [12]. Proponents of the change frame it as enforcing eligibility and preventing “improper” payouts; critics call it novel, legally aggressive and disruptive to families who already pay taxes [4] [5].
6. State alternatives and ongoing policy divergence
While federal options are limited, many states have implemented inclusive policies: roughly one-third of states with EITCs and most states with CTCs have written laws to include children or filers who lack SSNs, and California’s law explicitly extended CalEITC eligibility to ITIN filers [13] [3] [9]. That divergence means immigrant families’ access depends heavily on where they live and which state credits exist or were expanded [13] [14].
7. Numbers, stakes and political pressure
Estimates used in reporting and advocacy note that undocumented immigrants paid tens of billions in taxes (nearly $97 billion in a 2022 ITEP-based estimate cited by Reuters) yet remain largely excluded from key refundable credits; proposed administrative and legislative changes are being pitched as fiscal savings by some lawmakers and as targeted immigrant restrictions by others [6] [15] [4]. The Treasury proposal specifically names the EITC, ACTC, AOTC, Saver’s Match and Premium Tax Credit as at risk of reclassification [4] [5].
Limitations: available sources do not mention every possible deduction or niche state program; they focus on major federal credits, Treasury’s November 2025 actions and state-level responses (not found in current reporting). For individual tax advice, consult a tax professional or the IRS; for immigrant‑specific legal concerns, consult immigration counsel (available sources do not mention individual legal advice).