Trump Administration Proposes Requiring Citizenship Status Disclosure on IRS Tax Forms

The Trump administration has proposed a new requirement for U.S. taxpayers to disclose their citizenship and work authorization status on their annual tax forms. The IRS posted a draft of the 2026 Form 1040, which includes a question asking filers to certify if they, and their spouse if filing jointly, are a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S. A similar question is included on a draft of Schedule 3-A, used for claiming refundable tax credits.

The administration contends that this measure would help federal officials prevent illegal immigrants from collecting federal benefits for which they are ineligible, potentially saving taxpayers up to $2 billion. Under the proposal, every tax filer would have to certify their immigration or citizenship status to the IRS under penalty of law to file their return.

The Treasury Department stated that the new question is intended to prevent undocumented immigrants from improperly accessing refundable tax credits such as the Earned Income Tax Credit or the Additional Child Tax Credit, which are typically available to low- and middle-income workers and families and can result in a refund.

While undocumented immigrants are not authorized to reside or work in the U.S., many do pay taxes, including income, Social Security, and Medicare taxes. According to the National Taxpayer Advocate, 3.8 million tax returns were filed in 2024 using an Individual Tax Identification Number (ITIN), often by undocumented workers who cannot obtain a Social Security number. These filers paid approximately $14.4 billion in income taxes and $6.5 billion in Social Security and Medicare taxes.

Currently, a valid Social Security Number is generally required to qualify for the Earned Income Tax Credit, and individuals with only an ITIN do not qualify. The IRS verifies Social Security Numbers against records from the Social Security Administration for each claim of the Earned Income Tax Credit. Eligibility for the Additional Child Tax Credit also depends on statutory requirements.

The Trump administration's proposal would extend the standards of the Personal Responsibility and Work Opportunity Reconciliation Act to certain refundable tax credits, potentially making individuals like those covered under the Deferred Action for Childhood Arrivals (DACA) program, those with Temporary Protected Status, and H1-B visa holders ineligible for some credits.

Research from Boston University, Columbia University, and the Institute on Taxation and Economic Policy estimates that this proposal could lead to 671,000 people, including 309,000 children, losing the Earned Income Tax Credit. An additional 1.1 million people, including 574,000 children, could lose the Additional Child Tax Credit. Many of these children are U.S. citizens whose eligibility is tied to a parent's status.

Critics express concern that the new disclosure requirement could serve as a tool for immigration enforcement. They argue that it forces undocumented immigrants into a difficult position: either admitting their unlawful status on a tax return, potentially leading to arrest and deportation, or committing a felony by lying. Some fear this could also lead to an increase in individuals choosing not to file taxes altogether.

David Bier, director of immigration studies at the Cato Institute, told The Associated Press that the measure could be used as an immigration enforcement tool. Nina Olson, executive director for the Center for Taxpayer Rights, stated that it would involve the IRS in the administration's immigration policies.

This proposal follows a previous attempt by the Trump administration to share taxpayer information of migrants with Immigration and Customs Enforcement (ICE). That agreement was blocked by a federal judge for violating taxpayer privacy laws, though the IRS had already provided ICE with the addresses of 47,000 individuals before the order.