Sponsors (25)
The bill tightens and standardizes SSN rules to improve IRS processing and reduce improper CTC/EITC payments, but in doing so it risks excluding some eligible families, increases paperwork for filers and the IRS, and raises privacy concerns from more extensive SSN verification.
Low-income families claiming the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC) will face clearer Social Security Number (SSN) issuance rules from SSA, reducing improper payments and the likelihood of audits or retroactive disallowances for eligible households.
All taxpayers will benefit from a standardized SSN definition across the tax code and procedures, simplifying IRS processing and dispute resolution and improving program integrity—likely reducing fraud and saving taxpayer funds used for erroneous CTC/EITC payments.
Some eligible families—particularly households with noncitizen caregivers, children whose SSNs are issued later, or families who narrowly fail new SSN timing/citizenship tests—could lose access to the CTC/EITC or have benefits denied.
Taxpayers (especially low-income filers) and the IRS will face additional administrative burdens to obtain, verify, and report qualifying SSNs and SSA issuance dates before filing and during audits.
Taxpayers may face heightened privacy risks because the policy encourages more SSN collection and tighter cross‑agency verification between the IRS and SSA, increasing sensitive data sharing and potential exposure.
Based on analysis of 2 sections of legislative text.
Requires taxpayer, spouse (if joint), and each qualifying child to have SSA‑issued Social Security numbers meeting a new definition to claim the CTC and EITC.
Introduced January 28, 2025 by Clay Higgins · Last progress January 28, 2025
Requires taxpayers claiming the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC) to include Social Security numbers that meet a new, narrower definition on their tax returns. The rule requires the taxpayer’s SSN (and both spouses on joint returns) and each qualifying child’s SSN, and limits eligible SSNs to those issued by the Social Security Administration to U.S. citizens or certain noncitizens and issued before the return’s due date. Applies to tax years beginning after December 31, 2025. The change will make some claimants ineligible if they or their qualifying children lack the specified SSA-issued SSNs, likely reducing some improper payments but increasing documentation and eligibility burdens for mixed‑status and immigrant families and for tax filers who currently use ITINs or other ID numbers.