The SECURE Benefits Act of 2025 changes the rules for who can claim certain tax credits by requiring valid Social Security numbers and work authorization. Here's what it does in practical terms:

The bill creates a new type of Social Security number called a "temporary work-authorized" number for people who have temporary work permission from the Department of Homeland Security. These numbers will be clearly marked on the Social Security card to show they're only valid for employment during a specific period. The Social Security Administration and IRS will share information about who has valid work authorization so they can verify eligibility for tax benefits.

For families claiming the Child Tax Credit or the Earned Income Tax Credit, the rules get stricter. Both spouses on a joint return must now have valid Social Security numbers (previously only one spouse needed one). More importantly, if someone has a temporary work-authorized number, they can only claim these credits if their work authorization is still valid on the date they file their tax return. The bill also adds similar requirements for other credits like the Saver's Credit and education credits.

The bill creates penalties for people who fraudulently claim these credits using expired or invalid work authorization. If caught, they could owe either the amount of the credit they claimed or $5,000, whichever is larger. However, there's an exception if someone had a reasonable cause and acted in good faith. These new rules take effect starting in 2027 for the work authorization system and 2027 for the tax credit requirements.