A new bill looks set to change the rules around the child tax credit, potentially causing millions of Americans to no longer be eligible.
H.R. 547 would amend the Internal Revenue Code of 1986 to require Americans to provide a Social Security number in order to claim the child tax credit.
Why It Matters
Every year, millions of American families qualify for the child tax credit, including a significant number of people without a Social Security number.
For tax year 2024, the maximum tax credit per child is $2,000 for those under 17. The refundable portion is set at $1,700 per qualifying child, allowing millions of families to benefit financially each year.
What to Know
Rep. Jefferson Van Drew (NJ-Republican) sponsored the bill, which could cause millions of parents living in the United States to no longer be able to claim the child tax credit for the child living in their household.
Currently, to qualify for the tax credit, your child or dependent must have a Social Security number, but there are no such requirements for the parents involved. The child also must be under 17 years of age at the end of the year and have lived with you as a dependent for more than half the tax year.
More than 16.7 million people share a home with at least one family member, usually a parent, who is undocumented, according to the American Immigration Council. Of that group, around 6 million are children under the age of 18, so this new bill could prevent millions of children's families from securing the tax credit.
Newsweek reached out to Van Drew for comment via email.
What People Are Saying
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "This bill follows Trump's recent anti-immigration policies, making it more difficult for non-citizens to claim their children and receive tax credits. The purpose of the bill is to prevent non-naturalized citizens from claiming their U.S.-born children as dependents for tax credits. This comes on the heels of efforts to deny birthright citizenship, where Trump aims to block automatic citizenship for children born within U.S. borders."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The proposed bill looks to change a decision that many legislators view as making it easier for undocumented immigrants to receive the child tax credit. Under the current law, the only individual who has to have a Social Security number to qualify is the child being claimed as a dependent. The one filing still has to have a taxpayer identification number, but doesn't have to provide a Social Security number, and if this were to change, it would undoubtedly cause some who have been receiving the credit over the last few years to no longer receive it."
What Happens Next
Thompson said H.R. 547 is likely to pass considering Republicans now have control of both the House and the Senate.
"Executive orders have already been issued to begin deportation processes and roll back many of Biden's policies," Thompson said. "The legal implications, much like the debate over birthright citizenship, will likely result in lawsuits and state-level challenges to these policies.
"Regarding Social Security numbers, this bill could force individuals to become naturalized citizens to obtain one or face possible deportation—even those who have lived in the U.S. for decades."
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