Trump administration proposes citizenship disclosure on 2026 IRS tax form

October 1, 2026 at 08:50 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Trump administration has proposed requiring all U.S. taxpayers to disclose their citizenship and work authorization status on the 2026 IRS tax form. The Treasury Department says the change would prevent immigrants lacking permanent legal status from claiming refundable tax credits, potentially saving up to $2 billion. Privacy advocates warn the data could be used for immigration enforcement.

Key Facts

The draft 2026 IRS Form 1040 includes a mandatory question on U.S. citizenship, nationality, or lawful work authorization for the filer and spouse.
The Treasury Department estimates the measure could save up to $2 billion by preventing ineligible immigrants from claiming refundable tax credits.
A 2024 National Taxpayer Advocate report found 3.8 million tax returns used an Individual Tax Identification Number, often by undocumented workers.
Taxpayers using ITINs paid $14 billion in taxes, according to IRS data cited in the report.

Proposed Tax Form Change

The IRS posted its draft 1040 form for 2026 in late August, adding a question on citizenship and work authorization status. The question asks whether the filer and spouse are U.S. citizens, U.S. nationals, or aliens lawfully authorized to work in the U.S., with yes or no checkboxes. A draft of Schedule 3-A, used to claim refundable tax credits, includes a similar question. Every tax filer must certify their immigration or citizenship status under penalty of law to file a return.

Administration Rationale

The Treasury Department says the new question is meant to keep immigrants lacking permanent legal status from taking advantage of refundable tax credits such as the Earned Income Tax Credit or the Additional Child Tax Credit. Administration officials argue the requirement could save taxpayers up to $2 billion. A Treasury official said the information will be subject to privacy, disclosure, and other legal protections, but did not say whether it would be shared with immigration enforcement agencies.

Privacy and Enforcement Concerns

David Bier, director of immigration studies at the Cato Institute, said the data could be used as an immigration enforcement tool. Nina Olson, executive director of the Center for Taxpayer Rights, said the change drags the IRS into the administration's immigration policies. Undocumented immigrants face a choice between declaring they are not authorized to live in the U.S. or lying on the return, which is a felony. Some may stop filing their taxes altogether, according to the report.