The Trump administration is proposing a new citizenship question for the federal tax form, a move it estimates could save taxpayers almost $2 billion and is being framed as the latest front in its crackdown on illegal immigration, according to a report by The Daily Wire.
The draft Form 1040 released by the Internal Revenue Service would require filers to check “Yes” or “No” to indicate whether they — and their spouse, if filing jointly — are “a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.”
The question is designed to surface filers who do not have a Social Security number and instead use an Individual Taxpayer Identification Number, or ITIN, to file their returns. Immigrants in the country illegally who are ineligible for Social Security numbers can obtain an ITIN and use it to pay federal taxes. Those filers contribute tens of billions of dollars a year in federal taxes, but many also receive benefits funded by American taxpayers, per the administration’s argument.
A Broader Push on Benefits
The citizenship question is part of a wider effort by the administration to keep people in the country illegally from collecting taxpayer-funded benefits. In August, the Treasury Department proposed restricting the refundable portions of certain individual income tax credits, estimating that the change could block between $700 million and $2.6 billion in credits for tax year 2026.
“Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and Treasury is enforcing it,” Treasury Secretary Scott Bessent said in a statement. “American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.”
The credit restrictions, however, would not be limited to people in the country without legal status. According to the report, they could also affect immigrants who are authorized to work in the United States, including recipients of the Obama-era Deferred Action for Childhood Arrivals program, people with Temporary Protected Status, and temporary workers on H-1B visas.
Legal Challenges Over Tax Records
The tax filing proposal lands amid a separate dispute over access to IRS data. U.S. Immigration and Customs Enforcement sought access to tax records under a federal data-sharing agreement with the IRS. In April 2025, the Treasury and Homeland Security departments set up a process allowing ICE to request certain taxpayer information from the IRS for criminal investigations. That process has been blocked by multiple courts.
Administration officials have not said when the proposed 1040 question might take effect, and a draft form does not guarantee a final version will look the same. The change would need to move through the formal rulemaking process before any tax filer would see the citizenship check-off on a return form.
The proposal raises questions about how the IRS would use the information and what it would mean for ITIN filers, who already face scrutiny. Some tax preparers and immigration advocates have warned that a citizenship question could discourage people from filing at all, potentially shrinking a revenue stream that the federal government currently relies on. Supporters argue the question is a straightforward enforcement tool that helps ensure only those legally entitled to benefits receive them.
The administration’s broader tax-related immigration push has drawn opposition from immigrant rights groups. Even before the 1040 question was floated, the August credit restrictions prompted concern from advocates who said the rules could strip benefits from people who are lawfully present and working in the country. Supporters of the restrictions have countered that the law bars certain noncitizens from receiving specific credits and that the IRS is simply aligning its administration of the tax code with existing statute.
What Comes Next
As a draft proposal, the citizenship question on Form 1040 would have to clear the public comment and review process before becoming final. The administration says the question could deliver nearly $2 billion in taxpayer savings, though the estimate was not broken down in the report. The Office of Management and Budget has not released a detailed analysis of the projected savings.
The fight over ICE’s access to tax records is also likely to continue in the courts. If the administration succeeds in implementing the citizenship check-off, it would give the government a new tool for identifying filers who lack legal status — an outcome that could reshape both the tax filing experience for millions of immigrants and the political debate over who is eligible for federally funded benefits.
For now, the proposed question remains just that: a question on a draft form, not yet part of the tax code, and a sign that the administration intends to keep pulling the tax system into its immigration enforcement machinery.
Source: www.dailywire.com — https://www.dailywire.com/news/americans-could-soon-face-a-new-question-when-they-file-their-taxes