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HR 778119th CongressIn Committee

Safeguarding American Workers’ Benefits Act

Introduced: Jan 28, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

H.R. 778, the Safeguarding American Workers’ Benefits Act, would tighten who can claim the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) by changing the social security number (SSN) requirements in the Internal Revenue Code. Specifically, it would require taxpayers (and, for joint returns, both spouses) to include an SSN for themselves and for each qualifying child on the tax return, with the SSN must be issued by the Social Security Administration to a U.S. citizen or under certain SSA categories, and issued before the return’s due date. It would also redefine how “social security number” is treated in related provisions and would apply to taxable years beginning after December 31, 2025 (starting with the 2026 tax year). In effect, the bill narrows eligibility away from other identification numbers (such as ITINs) toward only the SSNs meeting the specified SSA criteria for these credits.

Key Points

  • 1Child Tax Credit requirement tightened: To claim the CTC, a taxpayer must include the taxpayer’s SSN (and the SSN of each qualifying child) on the tax return, with the SSN issued to eligible individuals before the return due date.
  • 2Definition of SSN narrowed: The SSN must be issued by the SSA to a U.S. citizen or under specific SSA categories, and before the return due date; ITINs and similar numbers would not satisfy this requirement.
  • 3Earned Income Tax Credit tightened: The EITC would be claimed only with an SSN that meets the new definition (as defined in 24(e)(2)); this replaces the prior standard that allowed various forms of taxpayer IDs if valid for filing.
  • 4Conforming amendments: References that previously used “Taxpayer Identification Number (TIN)” would be replaced with “social security number (as defined in section 24(e)(2))” in related code sections (e.g., 6213(g)(2)(I) and 6213(g)(2)(F)).
  • 5Effective date: These changes apply to taxable years beginning after December 31, 2025 (i.e., starting with the 2026 tax year).

Impact Areas

Primary group/area affected: Taxpayers who claim the CTC or EITC, including families with qualifying children and low- to moderate-income workers who rely on these credits.Secondary group/area affected: Taxpayers who file with ITINs or rely on non-SSN identifiers, tax preparers, and IRS administration (due to changes in documentation and verification requirements).Additional impacts: Potential changes in eligibility for immigrant or mixed-status households that use ITINs; potential compliance and enforcement changes for tax filing, as well as possible impacts on refunds and timing for affected families. The bill’s emphasis on SSNs could be seen as reducing improper payments but may also limit access for some eligible individuals who lack an SSA-issued SSN under the specified categories.
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