The Trump administration is preparing to add a citizenship and work‑authorization question to the 2026 IRS Form 1040. Taxpayers would have to check “Yes” or “No” to indicate whether they, and their spouse if filing jointly, are U.S. citizens, U.S. nationals, or aliens lawfully authorized to work in the United States.
Administration rationale
Officials argue the measure will help the federal government prevent illegal immigrants from collecting refundable tax credits such as the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (CTC). Treasury estimates the change could save taxpayers up to $2 billion by eliminating fraudulent claims.
Proposed form language
The draft 1040 includes the question, “At the time you file your return, are you, and your spouse if filing jointly, a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?” A second draft, Schedule 3‑A, which is used to claim refundable credits, asks the same question. Both sections are mandatory; filing without a response would be a felony.
Impact on illegal immigrants
According to a 2024 report by the National Taxpayer Advocate, roughly 3.8 million returns were filed using an Individual Tax Identification Number (ITIN), a number often used by illegal immigrants who cannot obtain a Social Security Number. Those returns generated $14.4 billion in income taxes and $6.5 billion in Social Security and Medicare taxes.
Because the EITC requires a valid Social Security Number, many illegal immigrants are already ineligible for that credit. However, the administration’s proposal would also affect certain legal‑status immigrants who currently qualify for the credits, including DACA recipients, temporary protected‑status holders, and H‑1B workers.
Critics’ concerns
Privacy advocates and taxpayer‑rights groups warn the new question could become an immigration‑enforcement tool. “It’s dragging the IRS into this administration’s immigration policies,” said Nina Olson, executive director of the Center for Taxpayer Rights.
David Bier, director of immigration studies at the libertarian‑leaning Cato Institute, echoed that sentiment, suggesting the data could be used to locate and deport illegal immigrants.
Administration response
A Treasury Department spokesperson emphasized that any information collected would be “subject to a variety of privacy, disclosure and other legal protections.” The statement did not clarify whether the data would be shared with immigration‑enforcement agencies.
Potential loss of credits
Researchers from Boston University, Columbia University, and the Institute on Taxation and Economic Policy estimate that the rule could disqualify 671,000 people—including 309,000 children—from the EITC and roughly 1.1 million people—including 574,000 children—from the Additional Child Tax Credit.
Most of the children who would lose eligibility are U.S. citizens, but they could be affected because one or both parents would fail the new citizenship or work‑authorization check.
Legal background
The Trump administration argues that the Personal Responsibility and Work Opportunity Reconciliation Act, which governs eligibility for federal welfare programs, should also apply to refundable tax credits. A similar data‑sharing agreement between the Treasury and ICE was halted by a federal judge last year for violating taxpayer‑privacy laws, though the Treasury had previously turned over the addresses of 47,000 people to ICE before the injunction.
What’s next?
The IRS posted the draft forms in late August and will likely seek public comment before finalizing the language. Stakeholders on both sides are expected to submit feedback as the administration moves toward a final rule.
Original reporting: KTBS 3 (Shreveport) — read the source article.
