The Trump administration is proposing a new requirement that would make taxpayers disclose their citizenship and work authorization status to the IRS. The question would appear on the annual tax form filed by nearly all workers.

Administration officials say the requirement would help prevent illegal migrants from collecting federal benefits for which they are not eligible. They argue the change could save taxpayers as much as $2 billion.

The IRS posted a draft of its 2026 Form 1040 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 form includes “Yes” and “No” checkboxes for the taxpayer and the taxpayer’s spouse. A draft of Schedule 3-A, which is used to claim refundable tax credits, contains a similar question.

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Under the proposal, every person filing a tax return would have to certify an immigration or citizenship status to the IRS under penalty of law. That would put the status question directly into the annual filing process.

The Treasury Department said the question is intended to stop illegal immigrants from improperly receiving refundable tax credits. Those credits include the Earned Income Tax Credit and the Additional Child Tax Credit, which can produce refunds for eligible taxpayers.

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A Treasury official said the information would be “subject to a variety of privacy, disclosure and other legal protections.” The official did not disclose whether the information could be shared with federal immigration authorities for arrests or deportations.

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Illegal migrants are not authorized to live and work in the United States, but many still pay federal taxes. They typically contribute to Social Security, although they generally cannot receive Social Security benefits unless they later become eligible under federal law.

The National Taxpayer Advocate found 3.8 million 2024 returns on which a taxpayer used an Individual Tax Identification Number, known as an ITIN. The number can serve several purposes, and undocumented workers unable to obtain a Social Security number are among those who use it.

IRS data showed that taxpayers filing those nearly 4 million returns paid $14.4 billion in income taxes. They also paid $6.5 billion in Social Security and Medicare taxes.

A valid Social Security number is already required for the Earned Income Tax Credit, meaning workers who only have an ITIN do not qualify. The IRS checks Social Security numbers against Social Security Administration records for every claim involving that credit.

Eligibility for refundable credits depends on federal tax law and immigration status. The administration’s proposal would further restrict eligibility by applying standards from the Personal Responsibility and Work Opportunity Reconciliation Act to certain refundable tax credits.

Some migrants currently eligible for credits would lose eligibility under the proposed policy. They include people covered by Deferred Action for Childhood Arrivals, individuals with temporary protected status and temporary workers in the country with H1-B visas.

A research paper estimated that 671,000 people, including 309,000 children, would lose the Earned Income Tax Credit. It also estimated that 1.1 million people, including 574,000 children, would lose the Additional Child Tax Credit.

Researchers from Boston University, Columbia University and the Institute on Taxation and Economic Policy said most affected children would be United States citizens. Their eligibility would be lost because of at least one parent’s citizenship or immigration status.

Critics argue that the checkbox would provide the federal government with even more taxpayer information. Illegal migrants could declare that they are unlawfully in the country, potentially risking immigration related arrests, or lie on the return, which is a felony.

Some migrants could choose a third path and stop filing tax returns. David Bier, director of immigration studies at the libertarian leaning Cato Institute, told The Associated Press, “It could be used as an immigration enforcement tool and that is probably the reason why they are doing this.”

Nina Olson, executive director for the Center for Taxpayer Rights, said, “It’s dragging the IRS into this administration’s immigration policies.” The criticism comes after the administration previously sought to use IRS information in immigration enforcement.

Last year, the Treasury Department agreed to provide confidential taxpayer information about immigrants to Immigration and Customs Enforcement. The arrangement was intended to help the agency identify people for deportation.

A federal judge blocked the information sharing agreement after ruling that it violated federal taxpayer privacy laws. Before the agreement was stopped, however, the IRS had already provided ICE with the addresses of 47,000 people.

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