Elon Musk Claims Democrats Are Using IRS Refund 'Fraud Payments' to 'Attract and Retain Illegal Immigrants in the USA'

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Elon Musk has accused the Democratic Party of using fraudulent IRS refund payments as a tool to attract and retain illegal immigrants in the United States.

In a post on X, the billionaire claimed Democrats are "aiding and abetting" fraudulent government payments to establish a "permanent one-party majority nationally, just like they did in California."

"IRS refund fraud payments are one of several means used by the Democratic Party to attract and retain illegal immigrants in the USA. . Musk wrote.

Musk's statement came in response to a video from journalist Savannah Hernandez, who who alleged that a Jackson Hewitt tax employee was advising undocumented immigrants on how to obtain tax refunds of up to $14,000, regardless of their employment status. Stationed outside a migrant shelter in New York City, the alleged employee was offering Jackson Hewitt flyers in Spanish with Child Tax Credit amounts listed.

"The more you look into it, the crazier it gets," Musk concluded.

The majority of replies to Musk express outrage over the perceived injustice, and convey considerable confusion over immigration and tax law.

"You do realize by saying this you all debunked 'undocumented immigrants don't pay taxes' right? The only way the IRS would have information on them, or get refunds is if they actually pay taxes to begin with," countered one user.

Musk himself replied, "No, Einstein, they can get tax 'refunds'...*without* paying taxes!"

It's true that people with a social security number may qualify for certain tax credits, even if they didn't earn income. The most significant federal tax credits are the Earned Income Tax Credit (EITC), which requires income, and the Child Tax Credit (CTC), which does not. Noncitizens can obtain social security numbers in the immigrant visa application process before entering the U.S., or when applying for work authorization or permanent resident status. Only lawfully present individuals are eligible, and are, by definition, documented.

Individuals who are ineligible for a social security number may receive an individual taxpayer identification number (ITIN) from the IRS. This enables undocumented migrants to pay state and federal taxes on property or earned income. There were an estimated 5.4 million active ITINs as of January 2021, with undocumented migrants contributing $59.4 billion to the federal government in 2022. These taxpayers are not eligible for federal EITC or CTC and cannot collect Social Security, Medicare or unemployment insurance despite paying into those programs.

The flyers, which advertise a paid tax filing service, do not necessarily equate to fraud, which would require falsifying tax forms. Tax accountants advise clients on tax law to take advantage of any applicable, legally available credits.

"Can you explain how some rando on the street in NYC handing out cheap copied flyers about taxes for immigrants has anything to do with the IRS?" another user asked, noting the jump between the flyer and accusing the IRS of fraud.

The post comes amid Musk's ongoing critique of government agencies as DOGE works to eliminate perceived waste by slashing budgets and laying off federal workers. Musk—who immigrated to the U.S. in 1992 and became a naturalized citizen in 2002—has been a vocal supporter of the Trump administration's anti-immigration efforts.