The One Huge Lovely Invoice (OBBB), also called the Working Households Tax Reduce Act, launched a number of adjustments to U.S. tax legal guidelines, together with many who have an effect on households who use a person taxpayer identification quantity (ITIN) when submitting. In brief, many common tax credit and deductions now require a legitimate Social Safety quantity (SSN), not simply an ITIN.

This doesn’t imply ITIN filers can’t file a tax return anymore — you positively can! However the eligibility necessities for sure tax advantages have modified in ways in which impression working households, particularly mixed-status households the place some members have SSNs and others solely have ITINs.

Let’s stroll via the distinction between SSNs and ITINs, what modified for tax yr 2025, and what choices you could have going ahead.

Notice: The OBBB is now additionally being referred to by lawmakers because the Working Households Tax Reduce Act. You might even see one or each names used right here, however they confer with the identical set of tax adjustments.

At a look

• The OBBB now requires a legitimate SSN to assert sure main tax advantages, just like the Baby Tax Credit score.
• An ITIN alone is now not sufficient to assert some tax credit and new tax deductions.
• Combined-status households should still qualify for some credit if at the least one partner and the kids have SSNs, relying on the credit score.
• ITINs are nonetheless legitimate for submitting a tax return, however the eligibility necessities for claiming sure tax breaks are a lot stricter.

What are taxpayer identification numbers?

A tax identification quantity (usually known as a tax ID quantity) is any quantity the Inside Income Service makes use of to trace tax obligations, revenue, and eligibility fortax advantages. Principally, it’s how the IRS is aware of who you might be whenever you file a tax return. The most typical tax ID numbers are SSNs and ITINs, however you could have one other type of quantity relying in your state of affairs:

• Social Safety quantity (SSN): A quantity used for U.S. residents, resident aliens, and sure approved non-citizens, which we’ll cowl in additional element beneath.
• Particular person Taxpayer Identification Quantity (ITIN): An ID for individuals who have to pay U.S. taxes however don’t qualify for an SSN, which we additionally cowl in additional element beneath.
• Employer identification quantity (EIN): A enterprise ID quantity utilized by employers, companies, and different enterprise entities to report revenue, payroll, and fulfill their tax legal responsibility.

• Adoption taxpayer identification quantity (ATIN): A brief quantity issued for kids being adopted within the U.S. when mother and father can’t get an SSN immediately however nonetheless want to assert the kid on their tax return.
• Preparer tax identification quantity (PTIN): Required for paid tax preparers who file or help with federal revenue tax returns on behalf of another person.

So, all of those are thought-about taxpayer identification numbers, however they’re used for various functions. The primary ones we’ll go over on this article are SSNs and ITINs, so let’s dive a bit deeper into these.

What’s a Social Safety quantity?

An SSN is the commonest tax identification quantity within the U.S. It’s a nine-digit quantity issued by the Social Safety Administration (SSA) to U.S. residents, resident aliens, and sure non-citizens approved to work.

What does it imply to have a “legitimate” SSN?

Not each SSN counts the identical on the subject of tax credit. A sound Social Safety quantity is one that’s:

1. Issued by the SSA: Momentary or unofficial numbers don’t qualify.
2. Legitimate for employment: This implies the individual is allowed to work within the U.S. The cardboard ought to state, “Legitimate for work solely with DHS authorization,” if the individual’s work authorization is tied to their immigration standing. These are nonetheless thought-about legitimate SSNs for tax functions.
3. Not revoked or expired: SSNs don’t technically expire, but when somebody was mistakenly issued one or their immigration standing modified, it might be reclassified.

Not all SSNs meet the OBBB’s necessities. The IRS makes use of the time period “legitimate SSN” within the tax code to tell apart between tax ID numbers that qualify for tax breaks and people that don’t. For instance, an SSN marked “Not legitimate for employment” can nonetheless be used to file a tax return, but it surely received’t qualify the taxpayer for sure refundable credit, such because the Further Baby Tax Credit score (ACTC) or American Alternative Credit score (AOTC).

What’s an ITIN?

An ITIN is one other sort of taxpayer identification quantity created by IRS. It’s a nine-digit quantity issued to people who have to file taxes however are usually not eligible for an SSN resulting from immigration standing or different causes.

Who wants an ITN?

You want an ITIN if:

Frequent conditions embrace worldwide college students, sure international buyers, and undocumented employees who nonetheless pay federal revenue tax.

Understanding the distinction between ITIN and SSN

ITINs and SSNs are each tax identification numbers, however they serve totally different functions. Right here’s a fast breakdown of the variations:

Breakdown: Which credit and deductions require a legitimate SSN in 2025?

Earlier than we dive into the specifics of what has modified for every tax break, here’s a fast breakdown of common tax credit and deductions and whether or not they are often claimed utilizing an SSN or ITN:

How do OBBB limits have an effect on tax credit for ITIN filers with out SSNs?

That is the place issues not too long ago bought tough. Beneath the OBBB, the regulation now requires legitimate SSNs for sure credit and deductions. For those who solely have an ITIN, you could lose entry to the next tax advantages.

Baby Tax Credit score (CTC) and Further Baby Tax Credit score (ACTC)

As of 2025, each the guardian (taxpayer) and the kid should have legitimate SSNs to assert. Beforehand, solely the kid wanted a legitimate SSN.

What this implies: Households the place each mother and father have solely ITINs can’t declare the CTC or ACTC, even when the qualifying little one has a legitimate SSN. For these married submitting collectively, at the least one partner should have a legitimate SSN to qualify. Taxpayers submitting as single or head of family should have a legitimate SSN to qualify.

Examples:

• A married couple has two U.S.-born youngsters (each with SSNs). One partner has an SSN, and the opposite partner has an ITIN. They’re eligible to assert the CTC and ACTC when submitting collectively.
• A single guardian who has an ITIN is just not eligible, even when their little one has an SSN.
• A married couple the place each spouses and all youngsters have SSNs are eligible.

No tax on ideas deduction

No tax on ideas is new deduction for tax yr 2025 that requires a legitimate SSN for eligibility. It helps you to deduct as much as $25,000 in certified ideas per tax return (not per partner).

What this implies: Since this deduction is claimed per return, not per partner, it makes issues rather less clear for mixed-status households. For those who each earn tip revenue and file collectively, however just one partner has an SSN, it’s not clear whether or not the partner with out an SSN can deduct their tip revenue right now. Till the IRS gives extra steering, the most secure assumption is that solely the information tied to the partner with a legitimate SSN could be deducted.

Examples:

• A married couple submitting collectively the place each spouses report tip revenue, and each have SSNs, can deduct the total quantity of ideas earned (as much as $25,000).
• One partner has an SSN and experiences $15,000 in ideas, whereas the opposite partner has an ITIN and experiences $10,000 in ideas. The couple can doubtless deduct the $15,000 linked to the SSN-holder’s revenue on their joint return, however doubtless not the extra $10,000 earned by the ITIN partner (nonetheless unclear).
• A single filer with solely an ITIN can not declare the deduction.
• A single filer with a legitimate SSN can deduct their full reported ideas.

No tax on additional time deduction

No tax on additional time is a brand new deduction for tax yr 2025 that requires a legitimate SSN to assert. In contrast to no tax on ideas, this profit is tied to submitting standing, not per tax return. It helps you to deduct as much as $12,500 of certified additional time compensation per yr (or $25,000 if submitting a joint return).

What this implies: You (and your partner, if submitting a joint return) should have a legitimate SSN to assert this deduction.

Examples:

• A married couple the place one partner has an SSN and earns additional time, however the different has an ITIN, can not declare the deduction.
• A married couple the place each spouses have SSNs is eligible.
• A single filer with an ITIN who earns additional time is just not eligible.

Schooling credit (American Alternative Credit score and Lifetime Studying Credit score)

As of 2025, two training credit now have an SSN requirement: the American Alternative Tax Credit score (AOTC) and the Lifetime Studying Credit score (LLC). For the AOTC, you need to additionally record the college’s EIN. Beforehand, you could possibly declare these training credit simply by having a legitimate ITIN. The AOTC gives a most credit score quantity of $2,500 per scholar, whereas the LLC is proscribed to $2,000 per return.

What this implies: If the coed has an ITIN as an alternative of an SSN, they (or their guardian, if the coed is a dependent) can not declare the AOTC or LLC, even when the guardian has a legitimate SSN. The IRS can disallow the credit score instantly if the required SSN or EIN is lacking, treating it as a clerical error as an alternative of requiring an audit.

Examples:

• A guardian with an SSN claiming an training credit score for his or her scholar dependent little one with an ITIN is just not eligible.
• A guardian with an ITIN and a scholar little one with an SSN can be not eligible.
• Two mother and father file collectively — one has an SSN and the opposite has an ITIN. They’ll declare an training credit score so long as the coed little one additionally has an SSN.

Senior deduction

The OBBB launched an additional deduction for seniors, which additionally requires the taxpayer claiming it to have a legitimate SSN. It permits these 65 and older to assert an additional $6,000 tax deduction along with the standard senior deduction, so long as they meet the revenue necessities.

What this implies: Seniors submitting with an ITIN received’t be capable to benefit from this new deduction. If submitting collectively, taxpayers with a legitimate SSN can declare the additional deduction for themselves, even when their partner has an ITIN. Nevertheless, the partner with an ITIN will be unable to assert the additional deduction.

Examples:

• A 67-year-old taxpayer with an SSN qualifies for the senior deduction.
• A 75-year-old taxpayer with solely an ITIN is just not eligible.
• Each spouses are 65 or older, however one has an SSN and one has an ITIN. They’ll declare a $6,000 deduction (for the partner with an SSN).
• If each spouses are 65 or older and each have SSNs, they’ll declare a mixed $12,000 deduction.

FAQs

The underside line

The One Huge Lovely Invoice modified the necessities for a number of tax credit and deductions, particularly for ITIN filers. Whilst you can nonetheless file taxes with an ITIN, you could lose entry to beneficial credit, together with the Baby Tax Credit score, training credit, and new tax breaks just like the no tax on additional time deduction.

For a lot of working households, this implies rethinking tips on how to method tax season (particularly in mixed-status households). Once you’re able to file, TaxAct can assist ease a few of the stress by guiding you thru the submitting course of and confidently dealing with these tax adjustments for you.

This text is for informational functions solely and never authorized or monetary recommendation.

All TaxAct provides, services and products are topic to relevant phrases and circumstances.