Under the IRS's current interpretation of federal law, the government gives annual cash payments to illegal immigrants for each dependent child that lives with them. This is done via the refundable child tax credit, which gives cash "refunds" to people who don't pay any income taxes. Illegal immigrants must file tax returns to receive these payments, and the IRS has set up a system that allows them to do this. Hence, Hillary Clinton and PolitiFact have claimed that half of all illegal immigrants pay federal income taxes. In reality, the polar opposite is true. Federal data shows that while roughly half of illegal immigrants file federal tax returns, the vast majority of them don't pay any income taxes. Instead, they use these returns to claim refundable child tax credits, which are a form of cash welfare.