Key Takeaways
• Tennessee has no state EITC or child tax credit; immigrants rely on federal credits with valid SSNs only.
• Undocumented immigrants with ITINs cannot claim federal EITC or child tax credit in Tennessee as of 2025.
• Federal tax credits require valid Social Security numbers and residency; no pending state-level tax credit expansions.
As of July 11, 2025, immigrants living and working in Tennessee face a unique tax landscape that is shaped by both federal and state policies. Recent years have seen ongoing debates about expanding tax credits for immigrants, but the rules in Tennessee remain largely unchanged. this update explains what has changed, who is affected, the effective dates, what actions are required, and what these rules mean for immigrants—especially those hoping to claim the Earned Income Tax Credit, child tax credit, or other state-level tax benefits.
Summary of What Changed
There have been no major changes to Tennessee’s tax benefits for immigrants in 2025. Tennessee still does not offer a state Earned Income Tax Credit (EITC) or a state child tax credit. The main tax benefits available to immigrants in Tennessee are federal credits, such as the federal EITC and the federal child tax credit. Eligibility for these credits depends on immigration status and whether the filer and their children have valid Social Security numbers (SSNs).
Who Is Affected
- Documented immigrants (those with valid SSNs and legal status) who live and work in Tennessee.
- Undocumented immigrants (those without valid SSNs) who pay taxes using an Individual Taxpayer Identification Number (ITIN).
- Families with mixed immigration status, where some members have SSNs and others do not.
- Employers and tax preparers who assist immigrants with tax filing in Tennessee.
Effective Dates
All information in this update is current as of July 11, 2025. The rules described here apply to the 2025 tax year and are expected to remain in place unless new federal or state laws are passed.
1. State Earned Income Tax Credit (EITC) in Tennessee
No State EITC Program
Tennessee does not have a state-level Earned Income Tax Credit (EITC). This means that low- and moderate-income workers in Tennessee, including immigrants, cannot claim a state EITC because it simply does not exist. Tennessee is one of several states that have chosen not to create their own EITC program. Instead, the state relies on federal tax credits to help low-income families.
Federal EITC Eligibility for Immigrants in Tennessee
While there is no state EITC, immigrants in Tennessee may still qualify for the federal Earned Income Tax Credit if they meet certain requirements:
- The taxpayer (and their spouse, if filing jointly) must have a valid Social Security number issued before the tax return due date.
- Any children claimed for the EITC must also have valid SSNs.
- The filer must be a U.S. citizen or resident alien for the entire tax year. Nonresident aliens are generally not eligible unless married to a U.S. citizen or resident alien and filing jointly.
- The taxpayer must meet income and other IRS requirements for the EITC.
Undocumented Immigrants and the EITC
Undocumented immigrants who file taxes using an ITIN (Individual Taxpayer Identification Number) are not eligible for the federal EITC. The IRS requires a valid SSN for both the filer and any qualifying children. While some policy groups and lawmakers have suggested expanding EITC eligibility to ITIN filers, no such change has been made at the federal level or in Tennessee as of mid-2025.
Key Takeaway:
Immigrants in Tennessee can only claim the federal EITC if they have valid SSNs and meet all other IRS rules. There is no state EITC.
2. Child Tax Credit (CTC) for Immigrants in Tennessee
Federal Child Tax Credit (CTC) in 2025
The federal child tax credit (CTC) for 2025 provides up to $2,000 per qualifying child, with up to $1,700 of that amount being refundable. This means that even if a family owes less in taxes than the credit amount, they may receive a refund for the difference, up to $1,700 per child.
Eligibility Rules for Immigrants
- The child being claimed must have a valid SSN.
- The taxpayer (and spouse, if filing jointly) must also have valid SSNs.
- The taxpayer must meet income and filing requirements set by the IRS.
- The taxpayer must be a U.S. citizen or resident alien for the entire tax year.
Undocumented Immigrants and the CTC
Undocumented immigrants, or those whose children do not have valid SSNs, are not eligible for the federal child tax credit. Tennessee follows the federal rules, so there are no state-level exceptions or additional credits for undocumented immigrants or ITIN filers.
Recent Developments
There have been ongoing discussions in Congress about expanding refundable tax credits to include more immigrant families, especially those who file with ITINs. However, as of July 2025, no new laws have been passed that change eligibility for the child tax credit in Tennessee.
Key Takeaway:
Only immigrants with valid SSNs for themselves and their children can claim the federal child tax credit in Tennessee. There is no state child tax credit.
3. Other Tennessee State-Level Tax Benefits or Programs for Immigrants
No Immigrant-Specific State Tax Credits
Tennessee does not offer any additional state tax credits or benefits specifically for immigrants, whether documented or undocumented. The state’s tax system is designed to be simple, with no broad income tax on wages. This means that credits like the EITC or child tax credit are only available at the federal level.
General Tax Environment in Tennessee
- Tennessee does not have a state income tax on wages. The state repealed its tax on investment income (the Hall tax) by 2021.
- Most tax benefits for low-income workers in Tennessee come from federal programs, not state programs.
- There are no local or municipal programs in Tennessee that offer tax credits or benefits specifically for immigrants as of 2025.
Key Takeaway:
Immigrants in Tennessee have access to federal tax credits if eligible, but there are no extra state or local tax credits for immigrants.
4. Practical Implications for Immigrants in Tennessee
Documented Immigrants (with Valid SSNs and Resident Status)
- Can claim federal EITC and child tax credit if they meet all IRS requirements.
- Cannot claim any state EITC or state child tax credit because Tennessee does not offer these credits.
- Should file federal tax returns carefully to ensure they receive all credits they are eligible for.
Undocumented Immigrants
- Must file taxes using an ITIN (Individual Taxpayer Identification Number).
- Cannot claim the federal EITC or child tax credit because they do not have valid SSNs.
- Still required to pay taxes, but do not receive refundable tax credits that could help reduce poverty or support their families.
Families with Mixed Status
- If some family members have SSNs and others do not, only the eligible members can be claimed for federal credits.
- The IRS will reduce or deny credits for any children or spouses without valid SSNs.
Tax Filing Assistance
- Free tax filing help is available through programs like the IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).
- These programs can help eligible immigrants claim federal credits and file accurate returns.
- Undocumented immigrants may face barriers to accessing these services due to eligibility restrictions.
Key Takeaway:
Eligibility for tax credits in Tennessee depends on having valid SSNs and meeting federal rules. Free help is available, but undocumented immigrants are excluded from key credits.
5. Background and Historical Context
Tennessee has a long history of keeping its tax system simple and low. The state has never offered a state Earned Income Tax Credit or a state child tax credit. Instead, it relies on federal tax credits to support low-income families, including immigrants who qualify.
- The federal EITC and child tax credit have been the main sources of tax relief for low-income families in Tennessee.
- Policy debates continue at the national level about whether to expand these credits to include more immigrants, especially those who file with ITINs.
- As of 2025, no changes have been made in Tennessee to expand eligibility for these credits.
Key Takeaway:
Tennessee’s tax system has not changed in recent years, and immigrants must rely on federal credits if they qualify.
6. Future Outlook and Pending Developments
Federal Level
- There is ongoing advocacy to expand refundable tax credits like the EITC and child tax credit to include ITIN filers, which would benefit many undocumented immigrants.
- As of July 2025, no new federal laws have passed to expand eligibility for these credits.
State Level
- Tennessee has not announced any plans to create a state EITC or state child tax credit.
- There are no pending bills or proposals to expand tax benefits for immigrants at the state level.
Key Takeaway:
No changes are expected soon. Immigrants in Tennessee should continue to follow current federal rules for tax credits.
7. Required Actions for Immigrants in Tennessee
For Documented Immigrants:
- Check eligibility for the federal EITC and child tax credit by reviewing IRS guidelines.
- File federal tax returns on time and include valid SSNs for all family members being claimed.
- Seek free tax help through VITA or TCE programs if needed.
For Undocumented Immigrants:
- Continue filing taxes using an ITIN to stay in compliance with federal law.
- Understand that federal EITC and child tax credit are not available without valid SSNs.
- Monitor policy changes in case eligibility rules change in the future.
For All Immigrants:
- Stay informed about any changes to federal or state tax laws that could affect eligibility for credits.
- Consult official resources for the most up-to-date information.
8. Official Resources and Contacts
- For detailed eligibility and filing instructions for the Earned Income Tax Credit and child tax credit, visit the IRS EITC and CTC page.
- For state tax information and assistance, visit the Tennessee Department of Revenue.
- For free tax help, look for IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs in your area.
As reported by VisaVerge.com, Tennessee’s approach to tax credits for immigrants remains closely tied to federal rules, with no state-level programs to supplement or expand eligibility.
Implications for Pending Applications
If you are an immigrant in Tennessee who has already filed or plans to file for the Earned Income Tax Credit or child tax credit in 2025:
- Pending applications for state EITC or state child tax credit will not be processed because these programs do not exist in Tennessee.
- Federal applications will be processed according to IRS rules. If you or your children do not have valid SSNs, your application for these credits will be denied.
- If you are waiting for a policy change that would expand eligibility to ITIN filers, be aware that no such change has been made as of July 2025.
Actionable Takeaways and Next Steps
- If you have a valid SSN and meet IRS rules, claim the federal EITC and child tax credit on your 2025 tax return.
- If you do not have a valid SSN, you cannot claim these credits, but you should still file taxes using your ITIN.
- Use free tax assistance programs to help with your tax return and to make sure you claim all credits you are eligible for.
- Stay updated on any changes to federal or state tax laws that could affect your eligibility for tax credits in the future.
Conclusion
In 2025, immigrants in Tennessee can only access the Earned Income Tax Credit and child tax credit at the federal level, and only if they have valid Social Security numbers and meet all other IRS requirements. Tennessee does not offer a state EITC or child tax credit, and undocumented immigrants are excluded from these federal credits due to SSN requirements. No recent policy changes have altered this situation. For the most current information, always refer to official government resources and seek help from trusted tax assistance programs.
Learn Today
Earned Income Tax Credit (EITC) → A federal tax credit for low- to moderate-income workers who meet income and eligibility requirements.
Social Security Number (SSN) → A unique number issued by the U.S. government used to track individuals for taxation and benefits.
Individual Taxpayer Identification Number (ITIN) → A tax processing number for individuals who are not eligible for a Social Security number.
Child Tax Credit (CTC) → A federal tax credit providing up to $2,000 per qualifying child with partial refundability.
Resident Alien → A non-U.S. citizen who meets residency requirements to be treated as a U.S. tax resident.
This Article in a Nutshell
Immigrants in Tennessee can only claim federal tax credits if they have valid Social Security numbers. Tennessee offers no state EITC or child tax credits. Undocumented immigrants using ITINs cannot access federal credits. Tax filing help is available, but eligibility depends on meeting strict federal rules as of 2025.
— By VisaVerge.com
