Tax Credit Crackdown: New Bill Requires Work-Authorized Social Security Numbers for Child and Earned Income Credits, Starting 2026

The "Saving American Workers Benefits Act of 2025" aims to tighten the rules for claiming two major tax credits: the Child Tax Credit (CTC) and the Earned Income Credit (EIC). Starting in the 2026 tax year, this bill, if enacted, would require anyone claiming these credits – and their qualifying children – to have a Social Security number (SSN) that is valid for employment in the United States. Let's break down what that actually means.

Social Security Showdown

This bill is all about who gets access to the Child Tax Credit and the Earned Income Credit. Right now, there's some flexibility in the identification numbers used to claim these credits. The "Saving American Workers Benefits Act of 2025" changes that. Section 2 and 3 lay out the new rule: your Social Security number, and your child's, must be issued to a U.S. citizen or someone authorized to work in the United States. That means numbers issued for non-work purposes won't cut it anymore. This change will directly impact families who previously qualified for these credits but lack work-authorized SSNs. For example, a family where the parents are undocumented but have a U.S. citizen child with a valid SSN might currently be eligible for the EIC or part of CTC. Under this new law, they would lose access to those benefits.

Real-World Rollout: Who's Affected?

This bill is a direct hit to immigrant families, particularly those with mixed immigration statuses. Think about a family where one parent works in construction with a valid work permit and the other is undocumented, caring for their two young children who were born in the U.S. Currently, they might be getting some relief from the EIC. This bill could take that away, putting a tighter squeeze on their budget. It's not just about immigrants, though. Any family relying on these credits that has an issue with their SSN documentation could face delays or denials. The bill also gives the IRS more power to correct returns based on SSN mismatches, using what's called "math error authority" (Section 2). This could lead to more audits and hassles for taxpayers.

The Fine Print and Potential Problems

While the bill's stated goal might be to reduce improper payments, it raises some serious questions. It essentially creates a work authorization requirement for accessing tax benefits designed to help low- and moderate-income families. This could push already struggling families further into poverty. There's also the practical issue of increased paperwork and potential for errors. Imagine a single mom working two part-time jobs, trying to navigate a more complex tax system with the added pressure of ensuring her child's SSN is correctly documented. The bill removes a paragraph (Section 2, subsection h, paragraph 7) from the existing Child Tax Credit law, which could further complicate things, although the exact impact of that removal isn't immediately clear from the bill text itself. The bottom line is that this bill, while seemingly straightforward, could have significant, and potentially negative, consequences for many families across the country.