The US tax return form that millions of people use every year could soon include a question about their citizenship and legal right to work in the country.
The Internal Revenue Service (IRS) has released a draft of the Form 1040 for the 2026 tax year. The draft includes a new yes-or-no question asking taxpayers whether they, and their spouse if they are filing jointly, are US citizens, US nationals or legally authorised to work in the US.
The form is only a draft and could still change before the final version is released. But if the question stays, it would mark the first time that the individual income tax return directly asks taxpayers about their citizenship and work status.
That has raised questions about why the IRS wants this information and what could happen to it after taxpayers provide it.
What is Form 1040?
Form 1040 is the main US individual income tax return. Taxpayers use it to report their income, claim deductions and credits, and calculate whether they will receive a refund or have to pay more tax.
The form can look complicated because every section has its own rules. Information about income, deductions and tax credits is used to calculate the taxpayer’s final tax bill.
But Form 1040 has also slowly become more than just a document for calculating taxes.
For example, the form asks taxpayers whether they received, sold or exchanged cryptocurrency during the year. It does not ask them to give the amount they bought or sold. Instead, the question gives the IRS information about an asset class that has historically been underreported.
This means the tax return can also be used by the government to collect information that helps enforce tax and other policies.
Why is the IRS asking about citizenship?
US tax obligations are not limited to US citizens. People working in the US can generally have tax filing obligations, including non-citizens. Resident aliens generally follow the same federal income tax rules as US citizens.
The proposed question would now require taxpayers to directly confirm their status.
The question in the September draft reads: “At the time you file your return, are you, and your spouse if filing jointly, a US citizen, US national, or an alien lawfully authorised to work in the US?”
The idea behind the question is linked to proposed changes to certain tax credits. In May, US News reported that IRS officials were considering adding a citizenship question to tax returns.
Since then, the Treasury Department and the IRS have proposed immigration eligibility restrictions on the refundable portions of several tax credits. These include the earned income credit, additional child tax credit, American opportunity tax credit and adoption credit.
A new draft Schedule 3-A connected to these credits would ask whether a taxpayer or their spouse is a citizen, national or qualified alien under federal benefits law.
If certain tax benefits are available only to citizens or specific categories of lawfully present people, the IRS would need a way to check whether taxpayers qualify.
The new question on Form 1040 could be used for that purpose. Asking about the taxpayer’s status before these restrictions take effect could also give the government more information when checking whether taxpayers are eligible for the credits.
The new citizenship question has raised concerns over how the IRS may use or share the information, especially after a court recently questioned the agency’s handling of more than 47,000 taxpayer records shared with ICE. While federal privacy laws limit such disclosures, the case has raised doubts about how strong those protections are.
Could the question affect tax filing?
There is also concern that some immigrants could become less willing to file tax returns if they are worried about what could happen to their information.
Taxpayer advocates have argued that simply asking about citizenship or immigration status could discourage some immigrants from filing their returns, according to LawCommentary.
The concern is that people may worry that information given to the IRS could later be transferred to immigration authorities.
That fear could affect taxpayer behaviour. If some people stop filing tax returns because of these concerns, it could ultimately reduce tax compliance and tax collections.
What happens next?
The 2026 Form 1040 has not been finalised yet. The IRS could still change or remove the question before the final form is published.
However, if some version of the citizenship question remains, taxpayers would first see it when they file their 2026 tax returns in spring 2027.
For now, taxpayers, tax professionals and non-citizen taxpayers will have to wait for the IRS to release the final version of Form 1040 and confirm whether the question will remain.
Disclaimer: This article is for general informational purposes only and does not constitute legal, immigration, or tax advice. Immigration laws and government policies are subject to frequent change without notice. While we strive to provide accurate updates, readers are strongly advised to verify the latest requirements with the official embassy, consulate, or government portal of the respective country. Financial Express is not responsible for any decisions made based on this information. For personalized guidance, please consult a qualified immigration attorney or a certified professional advisor.