Overview
- The IRS posted a draft 2026 Form 1040 that requires filers and spouses to certify whether they are U.S. citizens, U.S. nationals, or lawfully authorized to work, with a penalty for false answers.
- The Treasury and White House say the change is meant to stop ineligible claims for refundable credits such as the Earned Income Tax Credit and Additional Child Tax Credit and estimate up to $2 billion in savings.
- Independent researchers from Boston University, Columbia and ITEP estimate the rule would cut EITC for about 671,000 people and the Additional Child Tax Credit for roughly 1.1 million people, with many of those affected being U.S. citizen children in mixed‑status families.
- Privacy and enforcement concerns center on whether the IRS would share the new status data with immigration authorities after a prior Treasury plan to hand data to ICE was blocked by a judge and the IRS had already given ICE addresses for about 47,000 people.
- Legal challenges and practical effects are likely, including reduced tax filing by undocumented people, criminal risk for false certifications, and court fights over whether the agency can collect or use this information for enforcement.