Sponsor
Cindy Hyde-Smith
Senator · R-MS
Senator · R-MS
The bill tightens SSN-based verification and interagency checks to reduce improper refundable-credit payments and strengthen enforcement—protecting program integrity and certain filers with valid SSNs—while increasing privacy/data-sharing risks, administrative burdens, penalties, and exclusion of people who lack or do not provide SSNs, which could delay benefits and harm vulnerable households.
Low-income families and other taxpayers: tighter SSN-based verification and interagency checks reduce improper EITC/CTC/other refundable-credit payments, preserving program integrity and funds for eligible claimants.
Immigrants with DHS temporary work authorization and their employers: issuance of distinct, time-limited SSNs tied to the work authorization period enables legal payroll reporting, clearer employer verification, and a formal DHS–SSA enrollment pathway that can streamline hiring and reduce confusion.
Taxpayers who have valid SSNs: clarifying SSN rules preserves eligibility for the Savers Credit and the Saver's Match for filers who provide SSNs, maintaining retirement savings incentives for low- and middle-income households.
Immigrants and other taxpayers: creation of additional SSN identifiers and mandated DHS–SSA–Treasury data sharing increases privacy and data-security risks and expands government access to sensitive immigration and employment records.
Immigrants, ITIN holders, and other people without SSNs: conditioning multiple credits and protections on SSNs (and narrowing math-error protections to SSN language) will make many ineligible for the Savers Credit, Saver's Match, and some automated corrections, reducing benefits and retirement incentives for these groups.
Low-income families, immigrants, and students: expanded verification and documentation requirements (and possible DHS checks) risk delays, denials, or repayments of EITC/CTC and other credits due to mismatches or slow checks, increasing financial hardship for vulnerable households.
Based on analysis of 8 sections of legislative text.
Creates temporary, work‑authorized SSNs and requires DHS/SSA/IRS verification before certain tax credits or matches can be claimed; adds penalties for claims tied to invalid authorizations.
Official title: Amend the Internal Revenue Code of 1986 to require taxpayers claiming the child and earned income tax credits, and their qualifying children, to have a valid social security number for employment purposes.
Introduced October 3, 2025 by Cindy Hyde-Smith · Last progress October 3, 2025
Creates a new type of temporary, work-authorized Social Security number (SSN) tied to DHS work authorization and requires DHS to share authorization data with the Social Security Administration and Treasury/IRS. It conditions eligibility for several tax credits and matching programs (Child Tax Credit, Earned Income Tax Credit, Savers Credit, Saver’s Match, American Opportunity and Lifetime Learning credits) on verified, valid work authorization and SSNs, and creates new tax penalties for claiming credits based on expired or invalid temporary work authorization. Most tax changes apply to tax years beginning after December 31, 2026; the SSA authority to issue temporary work-authorized SSNs takes effect January 1, 2027. The bill adds documentation and verification requirements that force coordination among DHS, SSA, and Treasury/IRS, narrows the types of identification numbers acceptable for certain math-error assessments, and creates a new penalty (section 6663A) across multiple credits for fraud tied to invalid temporary authorizations.