Overview
- The IRS posted a draft Form 1040 in late August that adds a required checkbox asking whether the filer and spouse are U.S. citizens, U.S. nationals, or lawfully authorized to work in the United States.
- The Treasury Department says the change is meant to block ineligible claims to refundable credits and estimates it could save roughly $0.7 billion to $2.6 billion for tax year 2026.
- Researchers at Boston University, Columbia and the Institute on Taxation and Economic Policy estimate the rule would cut Earned Income Tax Credit eligibility for about 671,000 people and reduce the Additional Child Tax Credit for about 1.1 million people, including many U.S. citizen children.
- Privacy and immigrant‑advocacy groups warn the mandatory, certified question could be used for immigration enforcement, noting courts recently blocked an IRS–ICE data‑sharing plan after the IRS had already given ICE addresses for about 47,000 people.
- Advocates also warn the checkbox raises legal and behavioral risks because certifying false information on a tax return is a felony, which could push some undocumented people to lie, face criminal exposure, or stop filing taxes, and the change could affect DACA, TPS and some visa holders who currently qualify for credits.