A bill to 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.
Impact
If enacted, SB3798 would significantly impact current tax laws by tightening the regulations surrounding tax credit claims. By stipulating that only individuals authorized to work in the United States can receive child and earned income tax credits, it aims to address concerns regarding tax fraud and ensure that government benefits are allocated correctly. This amendment would require the Internal Revenue Service (IRS) to enforce these regulations rigorously, which may lead to an increase in compliance checks and possibly a reduction in claims from ineligible taxpayers.
Summary
SB3798 is a bill introduced to amend the Internal Revenue Code of 1986. The primary objective of the bill is to establish identification requirements for taxpayers who are claiming the child tax credit and the earned income tax credit. Specifically, the bill mandates that taxpayers, as well as their qualifying children, must possess a valid social security number (SSN) for employment purposes to be eligible for these tax credits. This change is positioned as a mechanism to ensure that only those taxpayers who have the appropriate working authorization can claim these credits, effectively reducing instances of fraudulent claims.
Contention
The bill may evoke points of contention among various stakeholders. Supporters, particularly those who prioritize tax reform and fraud prevention, might view this bill favorably as a necessary step toward accountability in public assistance programs. However, opponents may argue that this could disproportionately affect low-income families and children, especially those who may not have been issued social security numbers due to various reasons, including immigration status. Concerns about the accessibility and adequacy of these identification requirements may lead to debates regarding the fairness of the legislation.
No Child Tax Credit for Illegals Act of 2025This bill extends and expands the Social Security number (SSN) identification requirements for claiming the child tax credit. The bill also provides that the omission of a correct SSN related to a child tax credit claim is to be treated as a mathematical error for certain purposes.Under current law, to claim the child tax credit, a taxpayer must provide a work-authorized SSN (issued prior to the due date of the federal income tax return) for each qualifying child. Beginning in 2026, to claim the child tax credit, a taxpayer must provide a valid taxpayer identification number (issued on or before the due date of the federal income tax return) for each qualifying child.Under the bill, to claim the child tax credit, a taxpayer must provide a work-authorized SSN (issued before the due date of the federal tax return) for (1) each qualifying child; and (2) the taxpayer, the taxpayer and the taxpayer’s spouse (if filing jointly), or either the taxpayer or the taxpayer’s spouse (if either is a member of the Armed Forces).Finally, the bill provides that the omission of a correct SSN related to a claim for the child tax credit is a mathematical error for purposes of certain tax assessment and collection procedures.
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