The Trump administration is set to introduce a citizenship and work authorization question to the Internal Revenue Service’s Form 1040 for tax returns filed in the upcoming year. The question would require filers to indicate whether they and their spouse are U.S. citizens, U.S. nationals, or aliens lawfully authorized to work in the United States.

Officials have framed this measure as an effort to prevent undocumented immigrants from improperly receiving federal tax benefits. However, many experts and immigrant advocates argue that the addition is likely to discourage tax filing among immigrant populations, including those legally present in the country. Under current tax law, many credits and benefits are already restricted to individuals with valid Social Security numbers, which undocumented immigrants generally do not possess.

The new citizenship inquiry follows previous IRS practices that have raised privacy concerns, including the agency’s prior sharing of some taxpayer addresses with immigration enforcement authorities. Critics warn that the expanded question could deepen fears about data use and increase the risk that eligible immigrants will avoid filing returns or claiming benefits they are entitled to.

In parallel, the Treasury Department has proposed regulations that would limit access to certain tax credits, such as the earned-income tax credit and child tax credit, to “qualified aliens” as defined in the 1996 welfare reform legislation. This change would impact a broad group of immigrants, including recipients of Deferred Action for Childhood Arrivals (DACA) and foreign visa holders who have until now been eligible for these credits.

Together, these steps represent a notable shift in tax policy aimed at restricting benefits for immigrant communities. Administration officials maintain that the changes are intended to ensure that federal tax benefits are allocated appropriately and lawfully. Still, legal challenges are expected as opponents argue the measures create confusion among taxpayers and tax professionals alike, due to overlapping and inconsistent definitions of immigration status and qualification criteria.

Immigrant rights groups highlight that the combination of the citizenship question and tightened eligibility rules could have a chilling effect, discouraging immigrants from participating fully in the tax system. They caution that this may result in reduced tax compliance and diminished access to essential financial support for many low- and moderate-income families.