The Treasury Department and Internal Revenue Service proposed rules Wednesday to classify the refunded portions of four tax credits as federal public benefits under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, or PRWORA. The adoption tax credit, child tax credit, American Opportunity tax credit and earned income tax credit could be restricted for immigrants who do not meet federal eligibility requirements, including some noncitizens with Social Security numbers and work authorization. Treasury previously estimated annual savings of $700 million to $2.6 billion, while Social Security Administration data suggested 200,000 to 700,000 taxpayers, or fewer than 3% of those claiming the affected benefit, could be impacted. Public data indicates the number could be higher. Taxpayers unable to qualify for the refundable portion could still use any nonrefundable portion for which they are otherwise eligible to reduce their federal tax liability. To receive a refund, taxpayers would have to be U.S. citizens, U.S. nationals or qualified aliens when filing the return that first claims the credit and attest to eligibility under penalty of perjury. For joint returns, only one spouse would need to meet the requirement. The proposal follows legal analysis by the Justice Department's Office of Legal Counsel and would apply to tax years ending on or after the final regulations' publication date.