Trump Plan Would Add Citizenship Question to IRS Tax Forms

The Trump administration is proposing a new requirement that would ask U.S. taxpayers to disclose their citizenship or work authorization status on the annual tax return filed by most workers. Officials say the change is intended to prevent people who are in the country illegally from receiving federal tax benefits for which they are not eligible, a move the administration argues could save taxpayers as much as $2 billion.

The proposed question appears on the IRS draft Form 1040 for 2026, posted in late August. It asks: “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.?” The draft form includes “Yes” and “No” checkboxes for both the filer and a spouse. A draft of Schedule 3-A, used to claim refundable tax credits, includes a similar question.

Under the proposal, every filer would have to certify that information under penalty of law in order to submit a return. The Treasury Department says the goal is to stop ineligible claims for refundable credits such as the Earned Income Tax Credit and the Additional Child Tax Credit, which can provide refunds to qualifying low- and middle-income workers and families.

A Treasury official said any information collected would be subject to privacy, disclosure and other legal protections. However, the department did not say whether the data could be shared with federal immigration authorities for arrest or deportation purposes.

How the proposal intersects with current tax law

People who are in the U.S. illegally are not authorized to live and work in the country, but many still pay taxes. They often contribute to Social Security even though they generally cannot collect Social Security benefits unless they later become eligible under federal law. In 2024, the National Taxpayer Advocate identified 3.8 million tax returns filed using an Individual Tax Identification Number, or ITIN. While ITINs can be issued for several reasons, undocumented workers who cannot get a Social Security number are among those who use them.

According to IRS data, taxpayers filing those nearly 4 million returns paid $14.4 billion in income taxes and $6.5 billion in Social Security and Medicare taxes. Current law already limits access to some credits. A valid Social Security number is required for the Earned Income Tax Credit, and the IRS checks those numbers against Social Security Administration records. Workers who only have an ITIN do not qualify for that credit.

Eligibility rules for the Additional Child Tax Credit are more complex and depend on federal tax law and immigration status. The administration argues that standards from the Personal Responsibility and Work Opportunity Reconciliation Act, which governs eligibility for many public benefits, should also apply to certain refundable tax credits.

Who could lose eligibility

Researchers say the proposal would go beyond existing restrictions. Some migrants now eligible for certain credits would no longer qualify, including people covered by Deferred Action for Childhood Arrivals, those with temporary protected status and some temporary workers on H1-B visas.

A research paper released this week estimated that 671,000 people, including 309,000 children, would lose the Earned Income Tax Credit under the proposal. Another 1.1 million people, including 574,000 children, would lose the Additional Child Tax Credit. Researchers at Boston University, Columbia University and the Institute on Taxation and Economic Policy said most children affected would be U.S. citizens who lose eligibility because of a parent’s citizenship or immigration status.

Critics say the new checkbox could also discourage tax compliance. Migrants who are in the country unlawfully could face a choice between disclosing that status on a tax return, risking immigration consequences, or falsely answering the question, which could expose them to felony charges. Some may decide not to file at all.

The debate comes after earlier efforts by the administration to use IRS data in immigration enforcement. Last year, the Treasury Department agreed to share confidential taxpayer information with Immigration and Customs Enforcement to help identify people for deportation. A federal judge blocked that agreement, finding that it violated taxpayer privacy laws, though the IRS had already provided ICE with the addresses of 47,000 people before the order took effect.