Thank you for the opportunity to submit comments on the Department of Treasury (Treasury) and Internal Revenue Service (IRS) notice of proposed rulemaking (NPRM), “Application of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to the Refunded Portion of Certain Federal Refundable Tax Credits”, published in the Federal Register on August 20, 2026. The undersigned 82 organizations and institutions, which make up the Healthy Families Tax Credits Coalition, write in strong opposition to the NPRM and urge Treasury and the IRS to withdraw the proposed changes, which would harm families, undermine children’s health and economic security, and impose significant burdens on taxpayers and tax administrators.
The Healthy Families Tax Credits Coalition is a Massachusetts network of community-based organizations, direct service providers, tax preparers, health care institutions, researchers, and advocates working to expand and increase access to refundable tax credits. Launched in 2015, our coalition has successfully advocated to expand the Massachusetts Earned Income Tax Credit (EITC), now a 40 percent match of the federal EITC, and establish a Massachusetts Child Tax Credit (CTC). We have also promoted federal tax credits and accessible filing options to help Massachusetts families access these critical resources.
As a coalition committed to strengthening and improving access to refundable tax credits, we are deeply concerned that this proposal would deny the refundable portion of several tax credits, including the EITC and CTC, to many people who are lawfully present in the US, and in doing so take critical resources away from entire families.
The proposed rule threatens the financial security and health of families and children.
Refundable tax credits, including the EITC and CTC, are a proven tool for reducing poverty and hardship, supporting families, and promoting child health and development.i The EITC supplements the earnings of families with low and moderate incomes, while the CTC helps families meet the costs of raising children. In 2025, the federal EITC and refundable portion of the CTC lifted 6.1 million people, including 3.3 million children, above the poverty line.ii For families with low incomes, refundable credits can provide significant support that help with affording food, housing, utilities, child care, and other necessities. Reducing families’ access to the EITC and CTC will deepen financial hardship and have consequences for children’s health and well-being.
While the NPRM estimates that 200,000 to 700,000 taxpayers could become directly ineligible, the loss of the tax credit will be felt by entire families, including children. The Research to Action Hub for Children in Immigrant Families estimates that approximately 671,000 people, including 309,000 children, live in families that could lose eligibility for the EITC under the proposed rule and that approximately 1.125 million people, including 574,000 children, live in families that could lose eligibility for the refundable portion of the CTC.iii An estimated 566,000 people, including 285,000 children, could lose eligibility for both credits.6 Nearly 9 in 10 children who could lose eligibility for either or both credits are US citizens. 6
This change would impose a significant financial loss on families with the fewest resources to absorb it, while creating ripple effects beyond the federal tax system.
The proposed rule will create a chilling effect and undermine access to tax credits for eligible families.
The proposed rule’s consequences will extend beyond those who are directly excluded. Families with mixed immigration statuses may avoid filing taxes or claiming credits for which they are eligible due to confusion about new requirements, fear of disclosingpersonal information, or concerns about how their information may be used. Further, the draft form would require families to state that they wish to claim a federal public benefit. This requirement alone may deter people who fear public charge consequences, donot they think they are “needy” enough to claim a “public benefit,” want to leave benefits for others, or do not understand the question.
Under the proposed rule, anyone claiming the refundable tax credits will have to attest, under penalty of perjury, that they are a US citizen or national or a “qualified immigrant”. Requiring taxpayers to disclose or verify immigration status as part of the tax filing process represents a significant departure from the longstanding approach to administering these credits. Such a change risks eroding trust in the tax system and discouraging participation.
The proposed rule will create unnecessary administrative burden and complexity and undermine state tax credit policies.
The proposed requirements and restrictions would add substantial complexity to an already challenging tax filing process. Families, tax preparers, and community organizations would need to navigate new eligibility rules, determine who qualifies, and explain how immigration status affects the refundable portion of the credits. This uncertainty underscores the risk of confusion, erroneous denials, and additional administrative burdens for both families and tax preparers. Further, federal restrictions that discourage tax filing or create confusion about eligibility could undermine access to state credits, even when families remain eligible under state law.
In Massachusetts, the consequences could be compounded because the state EITC is explicitly tied to the federal EITC, meaning that changes that disrupt families’ access to the federal credit can also jeopardize access to state resources. A federal policy that makes it harder or less safe for eligible families to file and claim the credits to which they are entitled risks undermining not only access to federal tax credits, but also state investments designed to strengthen family economic security.
We urge Treasury and the IRS to withdraw the proposed rule.
Refundable tax credits, including the EITC and CTC, are evidence-based investments in children, families, and communities. Restricting access would increase hardship, jeopardize health and well-being, discourage tax filing, and create unnecessary complexity for taxpayers, states, tax preparers, and community organizations. We urge Treasury and the IRS to withdraw the NPRM and instead preserve and expand pathways for families to claim refundable tax credits.
The post Comments to the IRS Opposing Changes to Tax Credit Eligibility appeared first on Children's HealthWatch.
