Status Eligibility Confirmation and Updated Requirements for Earned Benefits Act of 2025; SECURE Benefits Act of 2025
Summary
The "Status Eligibility Confirmation and Updated Requirements for Earned Benefits Act of 2025" (SECURE Benefits Act of 2025) amends the Internal Revenue Code to require taxpayers claiming the child and earned income tax credits, and their qualifying children, to have a valid social security number for employment purposes. It introduces temporary work-authorized social security numbers and updates identification requirements for claiming tax credits. The bill also imposes penalties for fraudulent claims related to expired or invalid work authorizations.
Expected Effects
The bill will likely increase scrutiny on eligibility for certain tax credits, particularly for non-citizens with temporary work authorization. It aims to reduce fraud and ensure that only eligible individuals receive benefits. This could lead to increased administrative burdens for both taxpayers and government agencies.
Potential Benefits
- Reduced fraud in claiming tax credits.
- More accurate distribution of benefits to eligible individuals.
- Enhanced coordination between the Social Security Administration and the Department of Homeland Security.
- Clearer guidelines for temporary work authorization and its impact on tax credit eligibility.
Most Benefited Areas:
Potential Disadvantages
- Increased complexity for taxpayers, especially those with temporary work authorization.
- Potential delays in processing tax returns due to increased verification requirements.
- Possible disproportionate impact on low-income families who rely on these tax credits.
- New penalties could disproportionately affect those who make unintentional errors.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily related to the power of Congress to lay and collect taxes, as outlined in Article I, Section 8. The bill aims to ensure that tax credits are distributed fairly and efficiently, which falls under the general welfare clause. However, the increased scrutiny and potential penalties could raise concerns about due process and equal protection under the Fifth and Fourteenth Amendments, particularly if the implementation disproportionately affects certain groups.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).