For the first time ever, taxpayers may have to disclose their citizenship or work authorization status on their tax returns next year, according to IRS drafts of tax forms expected to be used this coming tax season.
The IRS' latest draft of the 1040 form includes a yes-or-no question for filers and spouses: "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 added question would align with the the Treasury and IRS' plans announced in August to crack down on refundable individual income tax credits going to non-qualified individuals. About 139 million people filed a 1040 last year, IRS data show.
On Aug. 20, the IRS released a draft
of a new schedule 3-A asking taxpayers to self-certify that they're eligible for the refundable portions of the earned income credit, additional child tax credit, American opportunity credit, and adoption credit.
"As I suspected, the new question is tied to the new schedule 3-A," said Richard Pon, a certified public accountant in San Francisco. The questions are "almost identical," he said.
Is this legal?
Confirming status to receive these refundable tax credits is legal under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), Treasury and IRS said. PWORA makes clear that these federal benefits are only for U.S. citizens, U.S. nationals and qualified aliens, they said.
Qualified aliens include lawful permanent residents, asylees, refugees, and certain other groups defined or specified under PRWORA, Treasury said. For a joint return, only one spouse must be a U.S. citizen, U.S. national or qualified alien.
A taxpayer who isn't qualified to receive the refunded portion can still claim any portion of an affected credit for which the taxpayer otherwise qualifies to offset income tax liability, Treasury said.
"This isn't political. It's the law," said Yenisley Diaz, enrolled IRS agent and owner of Chico Taxes, LLC in South Carolina. "That's how the 1996 law was written about federal benefits, but it's not really been implemented until now."
Pon agreed. "So even if there is a public backlash, I think the final version of form 1040 would keep the question," he said.
What are the concerns?
A major concern is how much status information could be accessible to different government bureaus, experts said
"Concerns include potential data sharing with other federal agencies, particularly after a recent court ruling questioned IRS disclosure practices to ICE," wrote Ching-luen (Moya) Wu, a tax professional, on LinkedIn. "Critics also fear it could deter non-citizen filers, potentially undermining tax compliance."
Earlier this month, an apeals court affirmed a lower-court decision stopping the IRS from disclosing taxpayer information related to government immigration actions. The IRS was sued in February 2025 over its decision to provide the Department of Government Efficiency access to protected tax return data.
Other analysts fear that the new question could prevent immigrants in the U.S. under temporary protected status (TPS) or Deferred Action for Childhood Arrivals (DACA) from collecting certain tax breaks.
How many people could the questions affect?
Treasury and IRS estimated that, of the 24 million taxpayers claiming these refundable tax credits, between 200,000 and 700,000 taxpayers (0.8% to 2.8%) would likely be ineligible to receive them for tax year 2026 because they don't meet the qualified status requirements.
Based on an estimated average of these refunded benefits for all taxpayers during the 2026 tax season of $3,656, Treasury and IRS forecast that the government would save $700 million to $2.6 billion by not paying out disallowed credits.
However, nonprofit and nonpartisan Pew Research Center suggested that the number of people affected could be even greater than Treasury and IRS estimate.
What should immigrants do?
File their taxes and be honest, Diaz said.
"A lot of people received these benefits for 30 years who weren't supposed to, but now, it's not going to happen anymore," she said.
Diaz and others warned people not to lie because tax returns are signed government documents, so they would be committing perjury. Perjury could prevent someone from being granted U.S. naturalization due to the "Good Moral Character" requirement.
"The intersection of tax compliance and immigration law is becoming stricter," wrote the Immigration Professional Association, a California professional law corporation that specializes exclusively in U.S. immigration, on LinkedIn. "Because the 1040 is a federal document signed under penalty of perjury, how you answer this question could have serious implications for your current status, future visa renewals, or your ultimate path to citizenship. Protect your future and ensure your filings are legally sound. If you are unsure of how this new requirement impacts your specific situation, do not guess."
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
This article originally appeared on USA TODAY: Why IRS tax forms may soon ask about your citizenship
