What Is the Fiscal Cost of the Additional Child Tax Credit from Families with Undocumented Immigrants? | 국외연구자료

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What Is the Fiscal Cost of the Additional Child Tax Credit from Families with Undocumented Immigrants?

AEI

2025.02.05

With the upcoming expiration of key provisions of the Tax Cuts and Jobs Act, an expansion of the child tax credit (CTC) will likely be central to the next landmark tax package of 2025. Lawmakers might focus on changes to the additional child tax credit (ACTC), the refundable portion of the tax credit intended for the lowest-income earners in the United States. Unlike most major federal public benefits programs, the CTC allows income-eligible families of undocumented immigrant parents to claim the ACTC on behalf of any US-born children they have. Policymakers have raised concerns about the nebulous fiscal benefit that such “mixed-status” families receive from these cash refunds and the potential for more from future legislation. We estimate that there are 1,799,070 mixed-status families who qualify to receive an ACTC payment, totaling $4.03 billion in federal outflows. More broadly, our methodology can be applied to estimate unauthorized immigrants’ fiscal impact on future or other forms of household assistance policies.

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