Child tax fraud

The new republican tax proposal makes changes to the child tax credit. This credit was established in 1997. In 2017(The Tax Cuts and Jobs Act) changes were made that required families to have social security numbers for their children and overnight millions of families were disqualified. Many were collecting for children they did not have. Loss of Eligibility: Some estimates suggest that the changes could affect eligibility for 4.5 million children The new tax bill will further reduce the number of families eligible for the child tax credit by requiring that both parents have social security numbers. The proposed tax and spending legislation — which proponents have dubbed the "one big, beautiful bill" — includes a requirement that both a tax filer and the person's spouse have Social Security numbers to claim the Child Tax Credit, or CTC, for their kids. That means children with mixed-status parents, such as one parent who is a U.S. citizen and the second who is not, would no longer qualify for the tax credit. Children who are born in the U.S., making them American citizens, but whose parents are undocumented would also be barred from the CTC. In some cases, one or both parents of a child who is authorized to be in the U.S. may lack a Social Security number. For example, parents who are in the U.S. on non-working visas, such as graduate students on education visas, would be prohibited from receiving the tax credit.