The Child Tax Credit (CTC) will increase from $2,000 to $2,200, but the new Republican tax law establishes that U.S.-born children of undocumented immigrants could be excluded.
Currently, children of undocumented immigrants can receive this tax credit if at least one parent has an Individual Taxpayer Identification Number (ITIN), along with the child having a valid Social Security number, to process the claim with the Internal Revenue Service (IRS).
“In previous years, we’ve had this available for those without legal status who have ITINs. They’ve been able to benefit from a $2,000 credit in past years for their children, as long as their children are qualified dependents with a Social Security number,” recalled Nadia Rodríguez, a certified public accountant and TurboTax spokesperson.
Under the tax law signed by President Donald Trump on July 4, mixed-status families will face greater challenges in accessing the benefit, as having an ITIN will no longer be sufficient: immigrants must now have a valid Social Security number.
“Starting in 2025, parents will also need that [valid] Social Security number [for work],” the expert said.
A report from the Center for Migration Studies (CMS) in October 2024 estimated that both parents of 1.8 million U.S. citizen children are undocumented, and despite these children having valid Social Security numbers, they would not be eligible for the CTC.
Pressure on undocumented immigrants
The reform to the Child Tax Credit largely responds to complaints from Republicans and their allies who have claimed that undocumented immigrants receive social benefits, even though in this case, the benefit is for U.S. citizen children.
The Center for Immigration Studies (CIS), a conservative organization opposed to undocumented immigration, conducted an analysis last October, stating that undocumented immigrants receive $8.2 billion in child tax credits.
In May, the chairman of the House Ways and Means Committee, Jason Smith (Missouri), linked the CTC’s Social Security requirement to other hardline immigration policies of President Trump, such as ending birthright citizenship.
“President Trump stopped the flow of illegal immigrants across our borders; this bill will stop the flow of taxpayer benefits into their pockets,” Smith declared on the House floor.
The changes under the tax law advanced the plan to reduce benefits for mixed-status families (undocumented immigrants with U.S. citizen children).
“It’s important to clarify that when filing taxes as a married couple, when it comes to child tax credits, only one of the taxpayers—one of the parents—needs to have a [valid] Social Security number,” Rodríguez clarified.
Another benefit for children
The TurboTax expert noted that even undocumented parents of U.S. citizen children can still apply for another type of assistance, though for a smaller amount.
This is the Credit for Other Dependents (ODC), which provides up to $500 for each dependent, including children.
“However, [children of undocumented immigrants] could still qualify under the credit available for other dependents, which is $500, not $2,200,” Rodríguez said.
