Trump’s Immigrant Tax Credit Rule Could Weigh on Filing Decision

The Trump administration is adding another policy move to its arsenal to squeeze immigrants—it wants to limit undocumented workers from benefiting from certain tax credits.

The Treasury Department in November previewed proposed rules to specify that the earned income tax credit, the additional child tax credit, the American opportunity tax credit, and the saver’s match credit are “federal public benefits,” which come with certain restrictions. Tax credits aren’t currently in that category, allowing some immigrants to access them.

The upcoming rules would impact immigrants beyond those in the country illegally and likely deter many who pay taxes from filing, tax ...