The IRS is proposing a new yes-or-no question on the Form 1040 asking whether filers (and spouses on joint returns) are U.S. citizens, U.S. nationals, or lawfully authorized to work in the U.S. The change is tied to a draft Schedule 3-A requiring self-certification to receive refundable credits such as the EITC and ACTC, and is grounded in the 1996 PRWORA law. Treasury and IRS estimate 200,000–700,000 taxpayers could lose refundable benefits in 2026, saving an estimated $700 million–$2.6 billion; critics raise privacy and compliance concerns. Tax professionals warn filers to answer honestly because false statements carry legal and immigration consequences.
IRS May Add Citizenship/Work-Authorization Question To 1040 — What Filers Should Know
Sanii Stewart-McIver makes her way through three tax returns utilizing an instructional video and an IRS document for reference in order to fill out 1040 forms in a personal finance class at Winooski High School on February 21, 2023.
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The Internal Revenue Service (IRS) is proposing, for the first time, a citizenship/work-authorization question on next year’s Form 1040, according to draft forms circulated for the coming tax season.
The draft 1040 includes a direct yes-or-no prompt: "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 change is tied to a new Schedule 3-A that would require taxpayers to self-certify eligibility for the refundable portions of several tax benefits.
What the Draft Forms Would Do
On Aug. 20 the IRS released a draft of Schedule 3-A. That schedule would ask filers to confirm eligibility for the refundable portions of the Earned Income Tax Credit (EITC), the Additional Child Tax Credit (ACTC), the American Opportunity Credit and the Adoption Credit.
Treasury and IRS officials say the measure enforces the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), which limits certain federal benefits to U.S. citizens, U.S. nationals and qualified aliens. Qualified aliens include lawful permanent residents, asylees, refugees and other groups explicitly named in PRWORA. For joint filers, Treasury says only one spouse must meet the qualified status to claim refundable portions.
Treasury also notes that taxpayers who are not eligible for refunded portions may still claim any portion of an affected credit that offsets tax liability rather than producing a refund.
Experts React
Richard Pon, a certified public accountant in San Francisco, said the Schedule 3-A and the new 1040 question are closely linked and that the questions are "almost identical."
Enrolled agent Yenisley Diaz, owner of Chico Taxes, LLC, said, "This isn't political. It's the law." She added that the PRWORA restrictions have existed for decades but have not been uniformly enforced until now.
Privacy, Data-Sharing And Legal Concerns
Privacy advocates and some tax professionals warn the new question could raise concerns about data sharing with other federal agencies. A recent LinkedIn post by tax professional Ching-luen (Moya) Wu warned critics fear expanded status reporting could enable broader interagency sharing, citing a recent court ruling that questioned prior IRS disclosures to immigration authorities.
A recent appeals-court decision affirmed a lower-court ruling that paused the IRS from disclosing taxpayer information for immigration enforcement purposes. Separately, the IRS was sued in February 2025 over its decision to provide the Department of Government Efficiency access to protected tax-return data.
Analysts also say the change could affect immigrants with Temporary Protected Status (TPS), Deferred Action for Childhood Arrivals (DACA), or other temporary statuses who have received refundable credits in the past.
Estimated Impact And Savings
IRS data show roughly 139 million people filed a Form 1040 last year. Treasury and IRS estimate that of about 24 million taxpayers claiming the refundable credits in question, between 200,000 and 700,000 taxpayers (roughly 0.8%–2.8%) could be ineligible for those refunds for tax year 2026 because they do not meet PRWORA's qualified-status rules.
Using an estimated average refunded benefit of $3,656 for affected taxpayers, Treasury and IRS project federal savings of approximately $700 million to $2.6 billion by preventing payment of disallowed refunds. The nonpartisan Pew Research Center has suggested the actual number affected could be higher than Treasury and IRS estimates.
Practical Advice For Filers
Tax professionals strongly advise filers to answer the question honestly. Tax returns are signed under penalty of perjury, and willfully false statements could expose taxpayers to criminal penalties and jeopardize future immigration benefits, including naturalization that requires demonstration of "Good Moral Character."
The Immigration Professional Association cautioned that how a taxpayer answers this question could affect current immigration status, future visa renewals, or eligibility for naturalization, and advised people who are unsure not to guess.
Who to contact: Medora Lee, money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected]. This article originally appeared on USA TODAY: Why IRS tax forms may soon ask about your citizenship.
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