Sponsors (2)
The bill tightens SSN and work-authorization requirements to reduce improper CTC/EITC payments and simplify IRS verification, but does so at the cost of excluding or delaying benefits for some low-income, immigrant, and mixed‑status families and increasing privacy and administrative burdens.
Taxpayers and the federal budget will face fewer improper CTC and EITC payments because requiring SSNs narrows eligibility and reduces fraud, preserving funds for eligible families.
IRS administration and verification will be clearer and more standardized (including math-error processing), which should simplify enforcement and reduce unnecessary audits for compliant filers.
The bill specifically prevents EITC claims by workers whose SSNs do not show work authorization, further cutting improper payments tied to ineligible filers.
Low-income families — including U.S. citizen children whose SSNs are not issued by the tax-return due date — may be denied or have delayed access to the child tax credit and/or EITC, reducing support when they need it.
Immigrants and mixed‑status households risk losing access to EITC/CTC if family members lack SSNs that show work authorization, lowering after-tax incomes and increasing financial strain.
Requiring more SSN information on returns raises privacy and identity‑theft risks for families who must provide additional sensitive data.
Based on analysis of 3 sections of legislative text.
Introduced January 28, 2025 by Cindy Hyde-Smith · Last progress January 28, 2025
Requires Social Security numbers (SSNs) that meet specific Social Security Act criteria for taxpayers, spouses on joint returns, and qualifying children to claim the child tax credit, and expands the bar on use of certain SSNs for the earned income tax credit (EITC). It also adjusts Internal Revenue Code language that treats SSNs versus other taxpayer identification numbers for math-error and verification purposes. The changes apply to tax years beginning after December 31, 2025.