SECURE Benefits Act of 2025
This bill, titled the SECURE Benefits Act of 2025, would overhaul how the Internal Revenue Code treats Social Security Numbers (SSNs) for people claiming the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and related credits (including Saver’s Credit and Saver’s Match, and credits like the American Opportunity and Lifetime Learning Credits). It creates a framework in which a temporary work-authorized SSN issued by the SSA (in coordination with the Department of Homeland Security) is required for eligibility, subjects certain claims to new penalties for invalid work authorizations, and expands identification requirements to noncitizens with temporary work authorization. The changes would begin to take effect for tax years after 2026 (with some provisions phasing in in 2027) and broaden to multiple credits, altering who can claim these credits and under what circumstances. In short, the bill seeks to ensure that credits are claimed only by individuals with verifiable work authorization by tying eligibility to valid SSNs, expanding government data sharing and verification, and imposing penalties for fraudulent or invalid authorizations. It also tightens ID requirements for both the claimants and their qualifying children across several major refundable and nonrefundable credits.
Key Points
- 1Temporary work-authorized SSNs and data sharing:
- 2- Establishes a process for SSA to issue a temporary work-authorized SSN tied to DHS-issued temporary work authorization, with a card indicating validity solely for employment during the authorized period.
- 3- Requires information sharing between DHS, SSA, and IRS to verify the status and validity of temporary work authorizations.
- 4- Effective date: provisions begin January 1, 2027.
- 5Child Tax Credit (CTC) identification changes:
- 6- For joint returns, requires SSNs for both spouses (instead of at least one).
- 7- Noncitizens with temporary work authorization must have a valid authorization confirmed by DHS (in coordination with DHS) to have a temporary work-authorized SSN treated as a valid SSN for CTC purposes.
- 8- Documentation rules to be prescribed by the Secretary in consultation with DHS.
- 9Earned Income Credit (EITC) and other credits:
- 10- EITC and related credits must use a valid SSN or other work-authorized number; temporary work-authorized SSNs must be confirmed as valid work authorizations to count for EITC eligibility.
- 11- Documentation requirements for temporary work authorization to be established.
- 12- Effective for tax years beginning after 2026.
- 13Penalties for invalid work authorization:
- 14- New penalty (Sec. 6663A) for fraud related to expired or invalid temporary work authorization when claiming credits, equal to the greater of the credit amount claimed or $5,000.
- 15- Reasonable cause defense available; applies to credits under CTC and EITC (and rolled into other credits in related subsections).
- 16- Penalties apply to taxable years beginning after 2026 and can be aggregated across multiple credits.
- 17Extensions to other credits (Saver’s Credit and Saver’s Match, AOC/LLC credits):
- 18- Saver’s Credit (section 25B) and Saver’s Match changes to require SSN on the return and align penalties with the new framework.
- 19- American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) penalties expanded to apply to invalid work authorization as well.
- 20- Effective dates align with 2027 for these provisions.
- 21Math error and enforcement updates:
- 22- IRS math error authority updated to use SSNs (instead of TINs) for EITC and CT C-related adjustments.
- 23- Adds SSN-based checks in eligibility determinations and updates to reflect SSN vs. TIN in various computations.
- 24Overall intent and scope:
- 25- The bill broadens SSN-based verification across multiple credits, increases federal coordination among SSA, DHS, and IRS, and imposes penalties for fraudulent or invalid work authorizations to reduce improper payments.