S. 2974: Status Eligibility Confirmation and Updated Requirements for Earned Benefits Act of 2025

The "Status Eligibility Confirmation and Updated Requirements for Earned Benefits Act of 2025" proposes several changes affecting tax credits and social security numbers for individuals, particularly noncitizens with temporary work authorization.

1. Temporary Work Authorization

The bill allows individuals with temporary work authorization from the Department of Homeland Security to receive a special type of social security number, termed a "temporary work-authorized social security number." This number would be designated for employment only, and the social security card would indicate this limitation. The bill requires information-sharing between the Department of Homeland Security and the Social Security Administration to manage these temporary work authorizations efficiently.

2. Child Tax Credit Requirements

Changes to the child tax credit include:

• Both spouses must provide their social security numbers if filing a joint tax return.
• For noncitizens holding a temporary work-authorized social security number, this number will only be valid for the child tax credit if both the Secretary of the Treasury and the Secretary of Homeland Security confirm the individual has valid temporary work authorization.

3. Earned Income Credit Identification Requirements

The bill stipulates that individuals needing to claim the earned income credit must have a social security number recognized as valid for employment. Noncitizens receiving a temporary work-authorized number will also need confirmation of their work authorization status to be eligible for this credit.

4. Penalties for Invalid Work Authorization

This bill introduces penalties for individuals who fraudulently claim tax credits using an invalid or expired work authorization. The penalty amount could be equal to the value of the claimed credit or a set amount of $5,000, whichever is greater. However, a reasonable cause exception could apply where penalties may be waived if valid justification is provided.

5. Other Tax Credits

Similar identification requirements will apply to other tax credits, including:

• Savers Credit: Individuals must provide a valid social security number to claim this credit.
• American Opportunity and Lifetime Learning Credits: These will also have similar penalties for invalid work authorizations when claimed.

6. Effective Dates

Most amendments introduced by the bill will take effect for tax years beginning after December 31, 2026, allowing a transitional period for compliance and implementation of the new rules.

Relevant Companies

• ADBE (Adobe Inc.): If they employ workers requiring temporary work authorizations, their HR policies may need adaptation.
• AMZN (Amazon.com, Inc.): Could face operational implications related to hiring practices and compliance with the new requirements.
• GOOGL (Alphabet Inc.): Similar to ADBE and AMZN, they may need to review hiring processes for qualifying workers.