IRS to Add Citizenship Question on 2027 Tax Returns Amid Immigration Crackdown

The IRS has circulated a draft 2027 Form 1040 that adds a yes-or-no question on citizenship, national status, or lawful work authorization for the filer and spouse. Officials claim the addition will provide data to confirm that refundable tax credits are awarded according to law, but critics contend the measure is designed to scare immigrants out of filing. At the same time, the Treasury Department is proposing stricter rules for the earned-income, child, adoption, and American Opportunity tax credits, redefining the refundable portion as a federal public benefit subject to the 1996 Personal Responsibility and Work Opportunity Reconciliation Act.

This shift would bar many DACA recipients, visa holders, and other authorized workers who do not meet the “qualified alien” definition from receiving full credit amounts. Experts note that existing Social Security number requirements already filter out most undocumented filers, suggesting the new question adds little administrative value. The proposed changes are expected to face legal challenges, and the Treasury has warned of penalties for incorrect filings, which could further deter eligible taxpayers.