Q&A Friday #41: Illegal Aliens And The Earned Income Tax Credit

Question: Another question about the bill. Everybody keeps talking about the back taxes the illegals will be paying, but I don’t hear much about the earned income credit. (welfare light) These illegals are going to get refunds for every year they file back taxes. Most EIC recipients get refunds between $3000-$4000 without paying a dime in during the year. Why hasn’t this been a huge issue? We will end up rewarding any illegals that file back taxes.

Disclaimer- I spent several years working as a tax adviser. I have seen hundreds of people that paid no taxes during the year walk away with a $3500 from the IRS because of the EIC.” — mr2trucker

Answer: Earlier this week, I wondered about this same issue. So, I called the folks over at the Center for Immigration Studies, because I knew they’d know the bill backwards and forwards.

They told me that illegal aliens will not be eligible for earned income tax credits for the years that they were in the country illegally, but the Senate Bill, as written, would qualify them for the EIC in the future.

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