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New Rules Could Block Noncitizen Tax Refunds | Durham News

Treasury and IRS are proposing to block hundreds of thousands of noncitizens from getting cash refunds on four major tax credits — earned income, child, adoption, and American opportunity — by reclassifying their refundable portions as federal public benefits. This could save up to $2.6 billion by 2026, especially impacting those with ITINs, including DACA recipients, TPS holders, and asylum seekers. The move stems from a 1996 welfare law interpretation, with Treasury Secretary Scott Bessent framing it as protecting taxpayer funds. While non-refundable parts remain unaffected, the cash-back…

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