New Law Changes Taxes for Immigrants

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The “One Big Beautiful Bill Act” increases taxes on immigrants. While all people who earn money must pay taxes, many tax credits and deductions now require a Social Security number.

Changes to Tax Credits & Deductions for 2025

Now, people without a Social Security number that lets them work in the U.S. cannot get these tax benefits:

• Get up to $2,200 per child with the Child Tax Credit, even if the child is a U.S. citizen. The child and at least 1 parent must now have a Social Security number.
• Deduct $6,000 from taxes for people over 65*
• Deduct up to $25,000 in tips*
• Deduct up to $12,500 in overtime pay*
• Get tax credits for some types of education costs
• Exclude student debt income if the student debt is cancelled because the student dies or becomes disabled

* These are new tax benefits for tax year 2025

Definitions:

• A tax credit lowers what you owe in taxes.
• A tax deduction lowers your taxable income.

“Trump Accounts” for Children

Children that have a Social Security number that lets them work in the U.S. can now have a special savings account to help pay for their future education or home. The government will put $1,000 into the accounts of citizen children born in the U.S. between 2025–2028.

Note: The child’s parents do not have to have a Social Security number for either the account or the $1,000.

New Tax on Money Sent Out of the Country

People who electronically send money to someone outside of the United States using cash or a money order will have to pay a new 1% tax on the money sent. Money sent using a bank account or credit card will not be taxed.