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Bessent Announces Citizenship Requirement for Refundable Tax Credits

8/21/2026

Summary

Story summary

Treasury Secretary Scott Bessent announced rules that bar non-citizen immigrants from refundable tax credit refunds.
Eligibility for adoption, child, American Opportunity, and Earned Income Tax Credits now requires citizenship, nationality, or qualified alien status.
The administration estimates nearly 1 million people will lose the refundable portion of these credits.
The Treasury projects the rule will save taxpayers about $3 billion.
Tax experts say up to several million immigrants could be affected.

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Story summary

Treasury Secretary Scott Bessent announced rules that bar non-citizen immigrants from refundable tax credit refunds.
Eligibility for adoption, child, American Opportunity, and Earned Income Tax Credits now requires citizenship, nationality, or qualified alien status.
The administration estimates nearly 1 million people will lose the refundable portion of these credits.
The Treasury projects the rule will save taxpayers about $3 billion.
Tax experts say up to several million immigrants could be affected.