This bill — known as the SHUT Act — would deny the refundable portion of the child tax credit to individuals unless they include their Social Security number on their tax return or otherwise show that they’re authorized to work in the U.S. In effect, it would prevent unauthorized immigrants who file tax returns from getting a tax refund using the child tax credit, which is up to $1,000 for per child under age 17 depending on the income level of the parent(s) claiming the credit.
Additionally, this bill would prohibit Individual Taxpayer Identification Numbers (ITIN) from being issued by the Dept. of the Treasury unless the supporting documentary evidence is submitted to the Treasury. This effectively ends the certifying agent program, which allows individuals and entities to enter into an agreement with the IRS to assist people who don’t qualify for a Social Security Number but need an ITIN to file their tax return. The certified agent facilitates the application and authenticates the person’s identity before forwarding the forms to the IRS.
People filing tax returns using an ITIN are already barred from receiving Social Security benefits and the Earned Income Tax Credit, but no such prohibition exists for the child tax credit.
The bill's full title is the Stop Handouts to Unauthorized Taxpayers Act.