For the First Time in Its History, the IRS Wants Every Filer to Answer a Citizenship Question on Form 1040. The Agency Won’t Say What Happens to the Answer

A draft of next year’s Form 1040 carries a new question about citizenship and work authorization. It reads: “At the time you file your return, are you, and your spouse if filing jointly, a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?”

The yes-or-no question appears below the filing status section in a box titled “other information,” and on a joint return each spouse answers separately. The New York Times reported that the Trump administration is preparing to ask tax filers if they are U.S. citizens.

This is a draft released for public review and could be removed before the final version. The IRS did not respond to requests for comment on how the answer would be used.

What the Citizenship Question Asks and Who It Lands On

Non-citizens, including undocumented immigrants, are already required to file, and they use the same federal forms citizens and permanent residents use. A filing history has long been treated as supporting evidence in a legalization case.

Immigration attorneys have observed that some filers may simply stop filing out of fear. Research from the Institute on Taxation and Economic Policy has documented that undocumented immigrants pay billions in annual federal, state, local and sales taxes that fund programs they are excluded from or can only partly access.

In August, Treasury and the IRS proposed regulations aimed at limiting eligibility for the Child Tax Credit, the American Opportunity Tax Credit, the Earned Income Tax Credit and the Adoption Tax Credit. Joseph Malouf, a Maryland attorney and legal contributor for Telemundo, says credit eligibility is the stated rationale for collecting the information.

A Second Draft Schedule Sets a Tougher Test for Refundable Credits

A companion draft, Schedule 3-A (Federal Public Benefit), gets far less attention. It calculates refundable credits including the Earned Income Tax Credit and the Child Tax Credit, asks filers to confirm they are a U.S. citizen, U.S. national, or a “qualified alien,” and denies those credits if the answer is no.

According to tax attorney Steven Chung, “qualified alien” is a defined term under federal benefits law that is narrower than simply being lawfully authorized to work.

On a joint return, one spouse with valid work authorization outside the qualified alien definition checks yes on Form 1040. On Schedule 3-A, that spouse fails the test and refundable credits are denies. Same person, same year, two forms, two different answers.

Why the Answer Could Matter After the Refund Arrives

Public charge is an immigration officer’s judgment that a person is likely to become dependent on government benefits. It is grounds for denying admission or permanent resident status.

Steven Chung writes that in 2022, a USCIS final rule prohibited using tax credits or deductions when considering public charge status. In July 2026, USCIS adopted a totality of the circumstances test and stated that use of credits like the Earned Income Tax Credit and the Child Tax Credit can be one of many factors, according to Above the Law.

The most recent USCIS memorandum is unclear on exactly how tax benefits factor in and says decisions will be made case by case on the totality of an individual’s circumstances.

Section 6103, ICE, and a Confidentiality Fight Still in Court

Section 6103 of the Internal Revenue Code generally protects the confidentiality of tax returns and taxpayer information, though it sets out exceptions allowing that data to be shared in certain circumstances.

Treasury Secretary Scott Bessent and then Homeland Security Secretary Kristi Noem signed an information-sharing agreement letting ICE submit names and addresses of immigrants in the U.S. illegally to the IRS for cross-verification against tax records. It triggered multiple lawsuits and the resignation of the IRS acting commissioner.

A federal judge determined earlier this year the IRS broke the law approximately 42,695 times by illegally revealing taxpayer information to ICE. An appellate ruling upheld an order blocking the administration’s attempt to obtain taxpayer data under those privacy laws.

Malouf also raises a Fifth Amendment concern: if the government characterizes unlawful presence as a crime, answering the question truthfully may amount to admitting one, he says.

What Filers Should Watch Before the Form Is Final

The draft can change and comments are open. Three developments will decide how much this box matters:

• Whether the citizenship question makes it into the final Form 1040.
• Whether the draft Federal Public Benefit schedule keeps the qualified alien gate on refundable credits.
• How the courts resolve the data-sharing litigation.

Tax practitioners add a counterpoint: not filing carries its own serious consequences, including damage to a good moral character finding in a naturalization or removal proceeding.

Households with a pending immigration case, mixed citizenship status, or refundable credits should review both drafts with an immigration attorney and tax professional. Until the IRS issues a final version, the question lives only on a draft.

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