New IRS tax form question could ask filers about citizenship status: According to reports

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IRS proposal reaches Form 1040 drafts
The IRS has drafted a 2026 Form 1040 asking filers whether they and any spouse filing jointly are U.S. citizens, U.S. nationals, or lawfully authorized to work. The question appears on a draft, not a final form. The draft appears alongside proposed Treasury rules governing the refundable portion of four tax credits. The rules remain proposed, and the draft Form 1040 uses a broader work authorization question than the separate ‘qualified alien’ standard in those proposed credit rules. AevanStock/Depositphotos
New question targets 2026 tax returns
The IRS draft asks each filer to answer “Yes” or “No” about citizenship, nationality, or lawful work authorization at the time the return is filed. Joint filers would answer separately for each spouse. The question is part of a broader Treasury proposal affecting certain refundable credits. Because the form is still marked as a draft, its wording and implementation could change before taxpayers begin filing 2026 returns during the 2027 filing season. Depositphotos
IRS Schedule 3-A adds another check
The IRS also drafted a new Schedule 3-A for taxpayers claiming certain refundable credits. It would apply to the earned income credit, the additional child tax credit, the refundable American opportunity credit, and the refundable adoption credit. The schedule is titled ‘Federal Public Benefit’ and uses a separate eligibility test tied to proposed Treasury rules. Unlike the main Form 1040 question about lawful work authorization, Schedule 3-A asks whether the taxpayer or spouse is a U.S. citizen, U.S. national, or ‘qualified alien’ under federal benefits law. rabbit75_dep/Depositphotos
Treasury ties plan to benefit rules
Treasury and the IRS proposed regulations in August 2026 that would treat the refunded portion of four tax credits as a federal public benefit under a 1996 welfare law. That change would affect some noncitizen taxpayers. Treasury and the IRS say the proposal would apply PRWORA’s federal benefit eligibility restrictions to the refunded portion of the four affected tax credits. Some tax and immigrant advocacy groups have warned that adding immigration-related questions to federal tax forms could discourage eligible households from filing returns or claiming credits they otherwise qualify for. Fun fact: Congress made the Earned Income Tax Credit permanent in 1978, three years after it was introduced. Depositphotos
Four refundable credits are involved
The proposed rule focuses on the earned income credit, child tax credit, American opportunity tax credit, and adoption tax credit when those credits result in a refund exceeding taxes owed.

Treasury and the IRS estimate that about 49 million taxpayers will claim at least one of the four credits for tax year 2026. Of those, about 24 million are expected to have a refunded portion that would be treated as a federal public benefit under the proposal. Fun fact: In 2025, the Earned Income Tax Credit marked its 50th year since Congress created it through the Tax Reduction Act of 1975. Depositphotos
Treasury gives a wide impact estimate
Treasury and the IRS estimate that roughly 200,000 to 700,000 taxpayers could be ineligible for affected refundable credits under the proposal because they do not meet the law’s “qualified alien” requirements. The government describes that range as a rough estimate based on several data sources. It also says the estimate does not account for how taxpayers might change their behavior if the rule becomes final. 24K-Production/Depositphotos
EITC already requires Social Security numbers
The Earned Income Tax Credit already has identification rules. In general, taxpayers claiming the EITC must have Social Security numbers valid for employment by the return’s due date, including extensions. That means a valid Social Security number for employment does not necessarily answer the separate PRWORA eligibility question. The proposed rule would require the taxpayer to meet the federal ‘qualified alien’ standard when claiming the affected refund portion. Depositphotos
ITIN filers are part of the debate
Individual Taxpayer Identification Numbers, or ITINs, allow certain people who cannot obtain Social Security numbers to meet federal tax filing requirements. An ITIN does not itself provide immigration status or work authorization. Several million federal returns include at least one ITIN each year, but existing credit rules already limit what ITIN filers can claim. For example, the EITC requires qualifying Social Security numbers, so the proposal should not be read as newly removing every affected credit from all ITIN households. Depositphotos
Privacy questions remain important
Tax return information is generally protected by federal confidentiality rules. Treasury notes that tax returns and return information are generally confidential under section 6103 of the Internal Revenue Code. Critics have raised concerns about placing immigration related information directly on federal tax returns. However, disclosure of tax return information is governed by existing federal law, including section 6103, so the final credit regulations would not by themselves determine every circumstance in which tax information could legally be disclosed. Depositphotos
The proposal is not a filing rule yet
The citizenship and work authorization question currently appears only on a draft 2026 Form 1040, not on a final form that taxpayers can file. Draft forms are published so that taxpayers and professionals can prepare and comment on them. The IRS changes drafts before issuing final versions. Anyone filing a 2026 return should rely on the final form and instructions available during the 2027 filing season.

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Public comments can shape the rule
Treasury and the IRS are accepting comments on the proposed regulation through October 5, 2026. A public hearing is scheduled for October 14 at 10 a.m. ET, giving taxpayers, organizations, and tax professionals an opportunity to weigh in before any final rule is issued. Treasury and the IRS say they will consider timely comments before adopting final regulations. The agencies can revise the proposal before issuing a final rule, so the current eligibility framework should not be treated as settled policy. jetcityimage2/Depositphotos
The tax form could change again
The IRS draft Form 1040, available online, was updated in September 2026, showing that draft tax documents can change during development. Schedule 3-A was released as a draft during the summer. The IRS warns taxpayers not to file draft forms or rely on draft instructions, as revisions may occur before official forms are released. For ordinary filers, the simplest approach is to wait for final IRS forms and instructions before making assumptions about new questions or credit eligibility. For another tax policy update tied to household income, state revenue, and affordability, see why Blakeman is proposing to eliminate New York income tax on the first $50,000. CeriBreeze/Depositphotos
What tax filers should watch next? The biggest question is whether Treasury finalizes the refundable credit regulations in time for them to apply to tax year 2026 and whether the IRS keeps the new status question on the final Form 1040. Until those decisions are made, taxpayers should treat both the regulation and the new form language as pending. The final 2026 Form 1040, Schedule 3-A, and IRS instructions issued for the 2027 filing season will provide the clearest answer. For another tax update tied to filing rules, overseas income, and U.S. citizenship, see why Americans living abroad can still owe federal taxes. Would adding citizenship and work status questions change how taxpayers view privacy at the IRS? Share your thoughts and drop a comment. This slideshow was made with AI assistance and human editing. Read More From This Brand:

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