A big change is coming that could affect many undocumented immigrants living in the United States. If you or someone you know has been receiving the Child Tax Credit (CTC), there are new rules you need to understand. These changes could mean losing out on up to $2,200 per child.
Let us break it down so you know what is happening, who is affected, and what options might still be available.
What is the new child tax credit change all about?
Starting in 2025, the CTC is increasing from $2,000 to $2,200 per child. But there is a catch—stricter requirements are being added that will affect undocumented immigrants, especially those in mixed-status families.
Here is what the new rule says:
- Children must still have a valid Social Security number
- But now, parents must also have a valid Social Security number that is work-eligible
- If a parent only has an ITIN (Individual Taxpayer Identification Number), they will no longer qualify for the CTC
In short, just having a U.S.-born child is no longer enough. The parent now needs to meet a new IRS rule to receive the full benefit.
Who will lose the $2,200 CTC payment?
According to a report from the Center for Migration Studies, about 1.8 million U.S. citizen children have undocumented immigrant parents. Many of these families currently receive the Child Tax Credit. But under the new law, that will change.
You could lose the CTC if:
- You are an undocumented parent with only an ITIN
- Your child has a valid Social Security number but you do not
- You do not meet the new work-eligible SSN requirement for parents
Nadia Rodríguez, a certified accountant and TurboTax spokesperson, explained it clearly:
“In previous years, we have had a tax credit available for undocumented taxpayers who have ITINs… Starting in 2025, parents will now also need that [Social Security number] [valid for a job].”
What happens if only one parent has a Social Security number?
If you are married and filing a joint return, there is a small window of hope. Only one parent needs to have a valid Social Security number to claim the CTC. This rule can help families where one parent is a citizen or legal resident and the other is undocumented.
So, if your spouse has a work-eligible SSN, your family may still qualify even if you do not.
Why is this change happening now?
This move is part of a larger immigration and tax reform law signed by President Donald Trump on July 4. It is aimed at reducing federal benefit access for undocumented immigrants, even when their children are American citizens.
Republican lawmakers, including Rep. Jason Smith of Missouri, said the change supports broader immigration goals:
“President Trump stopped the flow of illegal immigrants across our borders; this bill will stop the flow of taxpayer benefits into their pockets.”
The law reflects rising political pressure from conservative groups, such as the Center for Immigration Studies, which claims undocumented immigrants receive billions in tax credits each year.
Is there any other help for undocumented families?
Yes, there is a smaller option still available—though it does not pay nearly as much. Families may still qualify for the Other Dependents Credit (ODC). This credit is worth up to $500 per child. It applies even if the parent only has an ITIN.
Rodríguez confirmed this option:
“However, [children of undocumented immigrants] could still qualify under the credit available for other dependents, which is $500, not $2,200.”
It is a smaller benefit, but it might be the only available tax relief for some families starting in 2025.
What should you do next if you are affected?
If you are an undocumented immigrant or part of a mixed-status family, here are a few things you can do:
- Speak to a tax professional to understand how these changes affect your specific situation
- Gather documentation such as Social Security cards and ITINs now
- Plan ahead for possible changes in your tax refund or credit amounts
Do not wait until tax season hits. Preparing now can help avoid any surprises later.
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