Republican members of Congress are using the U.S. tax system to slow down President Obama’s plan that tries to keep undocumented immigrants from deportation. The president’s executive order, issued in November 2014, is designed to protect approximately millions of people now residing in the United States by using the DACA and DAPA deferred action programs. If the Republicans are successful, undocumented immigrants would not become eligible to claim the EITC (Earned Income Tax Credit), which is designed to lower the amount of tax that is owed. Anyone who could be eligible for DACA or DAPA should talk to an immigration lawyer right away. To learn more about DACA and DAPA, read one of our articles on:
The Republican Point of View
According to Republican Senator Charles Grassley of Iowa, lead author of the bill, the measure “is not meant to be part of the immigration debate.” Instead, it claims to be focused on the argument that Obama’s executive order would impose a heavy financial burden on federal, state, and local governments. Said Grassley in USA Today, the bill “is just part of correcting what the president has put in place when he legalized people through his November action.” The non-partisan Joint Committee on Taxation says the proposed new legislation would save the government 2.1 billion.
Allowing Undocumented Immigrants to Receive Social Security Cards
Obama’s new executive order allows documented immigrants to receive Social Security cards, which are necessary to file tax returns. Therein lies the problem, according to the cosponsors of the Republican bill. The Internal Revenue Service allows people who have recently received a Social Security number to file amended returns that claim an EITC, a refundable credit claimed by low to moderate income working people, for up to three prior years. According to Daniel Costa, director of immigration law and policy research for the Economic Policy Institute, the median annual salary of an undocumented four-person immigrant family was more than $40,000 for 2014. He estimates that a family in that range would qualify for an EITC of about $2,000.
The Future of of DACA and DAPA – Start Preparing Now!
What is the future of DACA (Deferred Action for Childhood Arrivals) and DAPA (Deferred Action for Parents of Americans and Lawful Permanent Residents)? U.S. immigration laws continue to be a controversial issue between Republicans and Democrats. As the two sides disagree, the Justice Department and the Obama administration continue to push for the approval of DACA and DAPA. The DACA program centers on youth who entered the United States as children. These people and their parents would be allowed a type of temporary residence called “deferred action.”
Applications have been temporarily suspended for DAPA until and if the courts give the okay. Anyone who is eligible to apply for DACA or DAPA in the future should start preparing now. If you are ready to get started, call Tucker, Nong and Associates or send us a message online today. We are ready to help you understand your options and prepare for the future.