Americans Could Soon Face A New Question When They File Their Taxes

The Trump administration recently proposed a new way to crack down on illegal immigrants with a new requirement for tax filers to disclose their citizenship status. 

If put in place, the administration estimates the new requirement could save taxpayers almost $2 billion. A proposed question on the IRS draft Form 1040 asks filers to check “Yes” or “No” to indicate whether they — and their spouse, if filing jointly — are “a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.”

The proposal seeks to identify illegal immigrants who can file their taxes without a Social Security number, since illegal immigrants who are ineligible for Social Security numbers can use an Individual Taxpayer Identification Number (ITIN) to file. Tax filers who use ITINs pay tens of billions of dollars in federal taxes each year, but many also receive benefits funded by Americans.

The proposed question is the Trump administration’s latest attempt to prevent illegal immigrants from collecting taxpayer-funded benefits. In August, the Treasury Department proposed restrictions on the refundable portions of certain individual income tax credits, estimating the changes could block $700 million to $2.6 billion in credits for tax year 2026.

“Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury is enforcing it,” Treasury Secretary Scott Bessent said. “American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.”

The proposed credit restrictions could also affect immigrants authorized to work in the United States, including recipients of the Obama administration’s Deferred Action for Childhood Arrivals (DACA) program, people with Temporary Protected Status, and temporary workers on H-1B visas.

Immigration and Customs Enforcement (ICE) sought to access tax records under a federal data-sharing agreement between ICE and the IRS. In April 2025, the Treasury and Homeland Security Departments established a process for ICE to request certain taxpayer information from the IRS for criminal investigations, but the move has been blocked by multiple courts.