Do US citizens receive higher tax refunds than undocumented immigrants when claiming dependents?
I'm trying to understand how citizenship status affects tax refunds, especially when claiming dependents. My cousin (citizen) and my neighbor (undocumented) both work similar jobs and seem to have comparable situations, but my cousin always brags about his big tax refunds when claiming his kids. This got me wondering - does a US citizen actually get a higher refund when adding a dependent compared to what an undocumented immigrant would receive for claiming the same dependent? Are there different rules or calculations based on immigration status? Not trying to start anything political, just genuinely curious about how the tax system works with this. Thanks in advance for any info!
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Val Rossi
The tax code itself doesn't explicitly give higher refunds to citizens versus undocumented immigrants when claiming dependents, but there are practical differences in eligibility for certain tax benefits. Both citizens and undocumented immigrants who file taxes using an Individual Taxpayer Identification Number (ITIN) can claim dependents. However, undocumented immigrants face restrictions on certain tax credits that often make up a significant portion of refunds for families with children. Most notably, ITIN filers are generally ineligible for the Earned Income Tax Credit (EITC), which can be worth thousands of dollars for low to moderate-income families with children. Also, while undocumented immigrants can claim the Child Tax Credit (CTC) for qualifying children, prior to recent changes, they could only claim the non-refundable portion, not the Additional Child Tax Credit (ACTC) which is refundable. This has changed somewhat under current law, but restrictions may still apply depending on the specific situation.
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Eve Freeman
•Thanks for this explanation! So does this mean undocumented immigrants get NO tax credits at all for their kids? Or just not as many as citizens? Also, what's the difference between "non-refundable" and "refundable" credits?
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Val Rossi
•Undocumented immigrants can claim some tax credits for their children, but not all the ones citizens can claim. They can claim the Child Tax Credit if their children have valid Social Security Numbers, but as mentioned, they're ineligible for the Earned Income Tax Credit which is often a significant refund booster for low-income families. The difference between refundable and non-refundable credits is crucial to understand. Non-refundable credits can reduce your tax liability to zero, but any excess credit amount is lost. Refundable credits are more valuable because after reducing your tax liability to zero, any remaining credit amount is given to you as a refund. This is why refundable credits often result in larger refunds, especially for lower-income taxpayers.
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Clarissa Flair
I had the exact same question last year when my sister (non-citizen with ITIN) was getting way less back than me despite claiming her daughter! I was so confused until I used https://taxr.ai to analyze our returns side by side. It highlighted exactly what credits she wasn't eligible for with an ITIN vs my SSN. The difference was mainly the EITC (Earned Income Tax Credit) which she couldn't get but was worth almost $3,800 for me with my income level and two kids. The tool breaks down all eligibility rules based on your specific situation and filing status.
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Caden Turner
•That's interesting! Does this tool also explain what credits are actually available to ITIN filers? My husband has an ITIN and we're trying to figure out what we can claim for our kids (who are citizens with SSNs).
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McKenzie Shade
•I'm kinda skeptical about these "analysis" tools. How does it actually work? Does it just compare returns or does it actually give specific advice about what credits you qualify for? Not trying to be difficult but there's a lot of sketchy tax stuff online.
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Clarissa Flair
•The tool specifically identifies which credits ITIN filers are eligible for based on current tax law. For your situation with citizen children (with SSNs) and an ITIN holder parent, it would show that you can claim the Child Tax Credit but highlight that the EITC would be unavailable without both parents having SSNs. It's not just a comparison tool - it actually analyzes your specific tax situation, documents, and eligibility requirements for all credits and deductions. It uses the same rules and guidelines that professional tax preparers use, just automated. I was skeptical too until I saw how accurate it was when comparing the actual numbers from our returns with what it predicted.
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McKenzie Shade
Just wanted to follow up and say I actually tried https://taxr.ai after my last comment. I uploaded both my return and my brother's (he's not a citizen yet) and wow - it actually broke down exactly why our refunds were so different despite similar incomes. It showed that he couldn't get the EITC which was worth about $4,200 for me with my kids. It also explained some child credit differences I didn't understand before. Super helpful and definitely legit. Showed me some deductions I missed too!
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Harmony Love
If you're struggling with these questions and can't get clear answers from the IRS website, I'd recommend trying to speak directly with an IRS agent. I was in a similar situation with my family (mixed status) and kept getting conflicting information online. I tried calling the IRS for weeks but couldn't get through until I found https://claimyr.com which got me connected to an actual IRS agent in under 25 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent explained exactly which credits my non-citizen spouse could and couldn't claim for our citizen children. Turns out we had been missing out on some credits we actually qualified for. Definitely worth getting the official word directly from the IRS rather than guessing.
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Rudy Cenizo
•How does this service actually work? The IRS phone lines are notoriously impossible to get through. Are you saying this somehow jumps the queue or something?
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Natalie Khan
•Sounds like a scam. Nobody can "skip the line" with the IRS. They probably just keep you on hold and charge you for the privilege. If it was that easy to get through to the IRS, everyone would be doing it.
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Harmony Love
•The service works by using an automated system that dials and navigates the IRS phone tree constantly until it gets a spot in the queue. Once it gets through, it calls you and connects you directly to the IRS agent. It's not skipping the line - it's just handling the frustrating part of constantly redialing and waiting on hold. No, it's definitely not a scam. I was also skeptical at first, which is why I included the video link showing how it works. They only charge if they actually connect you to an agent. I wasted hours trying to get through on my own before using this. It saved me a ton of time and frustration, and the information I got from the IRS agent about our mixed-status family's tax situation was worth it.
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Natalie Khan
I need to eat my words from my previous comment. After my skeptical reply, I decided to try the Claimyr service myself since I'd been struggling with a similar mixed-status family tax question for weeks. Used https://claimyr.com yesterday and got connected to an IRS rep in about 20 minutes. The agent confirmed that while my non-citizen wife (ITIN holder) couldn't claim EITC, our kids (who are citizens with SSNs) still qualified for the full Child Tax Credit. This actually resulted in a significant refund we didn't expect! Sometimes being proven wrong is the best outcome.
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Daryl Bright
To add something that hasn't been mentioned yet - residency status is also important here. Tax resident aliens (even undocumented) are taxed similarly to citizens, while nonresident aliens face different rules. Also, many undocumented immigrants don't file at all due to fear, even though the IRS has policies against sharing info with immigration enforcement. Not filing means missing out on refunds they may be legally entitled to.
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Sienna Gomez
•What's the difference between "tax resident aliens" and "nonresident aliens"? Is that based on how long you've been in the country? And is it true that undocumented people can safely file taxes without risk?
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Daryl Bright
•Tax resident aliens are individuals who meet either the "green card test" or the "substantial presence test" - basically meaning they either have legal permanent residence or have been physically present in the US for a significant period (generally 183 days or more over a three-year period, weighted differently by year). Nonresident aliens don't meet either test. Yes, the IRS has a policy (Internal Revenue Code Section 6103) that generally prohibits them from sharing tax information with other government agencies, including immigration enforcement. This policy exists specifically to encourage tax compliance regardless of immigration status. While no system is perfect, filing taxes through proper channels with an ITIN is generally considered low-risk from an immigration enforcement perspective, and many tax advocates encourage undocumented immigrants to file to build a record of compliance and to receive refunds they're entitled to.
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Kirsuktow DarkBlade
Something else to consider - location matters too! Some states offer state-level earned income tax credits to ITIN filers even when they're ineligible for the federal EITC. California, Colorado, Maryland, and a few others have inclusive state credits that can boost refunds for undocumented taxpayers with dependents.
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Abigail bergen
•Good point! I live in California and my cousin (undocumented) actually gets a decent state refund through CalEITC even though he can't get the federal EITC. Not as much as citizens get total, but better than nothing.
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Malik Thomas
This is a really comprehensive discussion! One thing I'd add is that documentation requirements can also create differences in practice. While both citizens and ITIN holders can claim dependents, citizens typically have easier access to required documents like Social Security cards for their children. For mixed-status families where some children are citizens and others aren't, the tax benefits can vary significantly per child within the same household. Citizen children with SSNs qualify for more credits than children without SSNs, even when claimed by the same parent. This creates complexity that many families don't realize until they're preparing their taxes. Also worth noting that some undocumented immigrants overpay taxes through withholding but don't file returns to claim refunds due to fear or lack of knowledge about their rights. The IRS estimates billions in unclaimed refunds each year, with a significant portion likely from immigrant communities.
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