An incorrect or unverified Social Security number (SSN) can cause e-file rejection, processing delays, and the denial of certain tax credits. The IRS verifies the SSN and name on the return with the Social Security Administration (SSA). When these records do not match, additional action is required before the return can be processed correctly.

• Return Rejection:

  • If the return is claiming a CTC or EIC, and the “Valid for Work Only with DHS Authorization” date has expired, the return will be rejected.

  • e-Filed returns may be rejected immediately when the SSN and name do not match SSA records.

• Refund Delays: If the IRS cannot verify the SSN information, refunds may be delayed until the issue is resolved.

• Loss of Credits: Credits requiring a valid SSN for employment, such as EIC and CTC, may be disallowed when SSA records do not support work authorization.

• IRS Notices: The IRS may issue notices requesting updated information or documentation.

Preparer Action Steps

Before Filing

• Confirm the taxpayer’s SSN and legal name exactly match SSA records.

• If changes are needed (such as a name change or status update), the taxpayer must correct their SSA file using Form SS-5 before filing. See https://www.ssa.gov/number-card/change for details.

• Employers may use the Social Security Number Verification Service (SSNVS) to confirm employee SSNs for W-2 reporting accuracy.

After Filing

• If a return was filed with incorrect SSN information, the taxpayer may need to file Form 1040-X to correct the record.

• If applicable, include any IRS rejection notice with the amended return.

SSN Requirements for Tax Benefits

An SSN will be one of the following:

• No legend – Issued to a U.S. Citizen or lawful permanent resident. The cardholder qualifies for EITC and other SSN-based credits.

• “Valid for Work Only with DHS Authorization” - Issued to a non-citizen who is a temporary worker. The cardholder may qualify for some credits if their DHS work authorization status is current on or before the filing deadline.

• “Not Valid for Employment” – Issued to a non-citizen who is not authorized to work in the U.S. This cardholder does not meet the SSN requirement for work-related credits.

Additional Information

• The IRS verifies SSNs with SSA but does not determine immigration status.

• Taxpayers who need to confirm their work-authorization status may use the USCIS myE-Verify Self Check tool.

• Federal information-sharing rules continue to evolve, but accurate SSN and identity information remain essential for timely return processing.

• See IRS Qualifying child rules for more information.

• U.S. Treasury News: Treasury Moves to Prevent Abuse of Refundable Tax Credit Benefits by Illegal Aliens