Key Takeaways
• The One Big Beautiful Bill Act expands the Child Tax Credit but keeps SSN requirements unchanged.
• H-1B households filing with ITINs cannot claim the expanded Child Tax Credit under the new law.
• Both taxpayer and child must have valid SSNs to qualify for the Child Tax Credit.
As of July 3, 2025, the One Big Beautiful Bill Act has passed both the Senate and the House, bringing major changes to tax credits and deductions in the United States 🇺🇸. Many families, including those in H-1B households, are eager to know how these changes affect their eligibility for the expanded Child Tax Credit. This article explains what the new law means for H-1B households, especially those who file taxes using Individual Taxpayer Identification Numbers (ITINs) instead of Social Security Numbers (SSNs). We’ll break down the rules, provide background, and discuss what families can expect moving forward.
What Has Changed With the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act is a sweeping piece of legislation that updates many parts of the U.S. tax code. It builds on earlier laws, like the 2017 Tax Cuts and Jobs Act, and aims to help families by expanding tax credits, including the Child Tax Credit (CTC). The Act was shaped by lawmakers such as Senate Finance Committee Chairman Mike Crapo and has been closely watched by immigrant communities, especially those on work visas like the H-1B.
Key changes in the Act include:
– Expanding the Child Tax Credit for more families
– Extending tax cuts and deductions from previous laws
– Adjusting income limits and phase-out rules for certain credits
However, the Act does not specifically mention changes to the rules about who can claim the Child Tax Credit based on their immigration or tax filing status.
Who Can Claim the Child Tax Credit?
The Child Tax Credit is a tax benefit that helps families with the cost of raising children. To claim this credit, both the taxpayer (the person filing the tax return) and the qualifying child must have a Social Security Number (SSN) that is valid for work in the United States 🇺🇸.
Basic requirements for the Child Tax Credit:
– The taxpayer must have a valid SSN
– The child must have a valid SSN
– The child must be under age 17 at the end of the tax year
– The child must be a U.S. citizen, U.S. national, or U.S. resident alien
– The taxpayer must claim the child as a dependent on their tax return
These rules have been in place for several years and are enforced by the Internal Revenue Service (IRS). The IRS provides detailed guidance on who qualifies for the Child Tax Credit on its official website.
What Is an ITIN and Who Uses It?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS. It is used by people who are required to file a tax return but are not eligible for a Social Security Number. Many immigrants, including some H-1B visa holders and their family members, use ITINs if they do not yet have SSNs.
Common reasons for using an ITIN:
– The person is not eligible for an SSN but needs to file taxes
– The person is a dependent or spouse of a visa holder who does not have an SSN
– The person is a nonresident or resident alien required to file a U.S. tax return
While ITINs allow people to pay taxes, they do not provide work authorization or eligibility for certain tax credits that require an SSN.
How Does This Affect H-1B Households?
H-1B households are families where at least one member is in the United States 🇺🇸 on an H-1B work visa. These households often include spouses and children who may not have SSNs, especially if they are new arrivals or are waiting for their SSN applications to be processed.
For H-1B households:
– If both the taxpayer and the qualifying child have SSNs, they can claim the Child Tax Credit
– If either the taxpayer or the child only has an ITIN, they cannot claim the Child Tax Credit
This rule remains unchanged under the One Big Beautiful Bill Act. The law does not expand eligibility to those filing with ITINs.
Example Scenario
Let’s say Priya is an H-1B visa holder working in the United States 🇺🇸. She has a young child who recently joined her from abroad. Priya has an SSN, but her child only has an ITIN because the SSN application is still pending. Under current rules, Priya cannot claim the Child Tax Credit for her child until the child receives an SSN.
Why Does the SSN Requirement Matter?
The SSN requirement is important because it is used to verify that both the taxpayer and the child are legally allowed to work in the United States 🇺🇸 and are eligible for certain benefits. The IRS uses SSNs to prevent fraud and ensure that tax credits go to those who qualify under the law.
Key reasons for the SSN rule:
– Prevents people from claiming credits for children who do not live in the United States 🇺🇸
– Ensures only those authorized to work can claim certain tax benefits
– Helps the government track who receives tax credits
What About the Expanded Child Tax Credit?
The One Big Beautiful Bill Act expands the Child Tax Credit by increasing the amount families can claim and making it available to more people. However, the Act does not change the basic requirement that both the taxpayer and the child must have SSNs.
Expanded Child Tax Credit details:
– Higher credit amounts for each qualifying child
– More families may qualify based on income
– Some credits may be refundable, meaning families can get money back even if they owe no taxes
But, as before, families filing with ITINs instead of SSNs are not eligible for the expanded credit.
Are There Any Exceptions or Special Cases?
At this time, there are no exceptions in the One Big Beautiful Bill Act that allow H-1B households filing with ITINs to claim the Child Tax Credit. The law is clear that an SSN is required for both the taxpayer and the child.
Possible exceptions in other areas:
– Some other tax credits, like the Additional Child Tax Credit or the Earned Income Tax Credit, also require SSNs
– Taxpayers with ITINs may still qualify for other deductions or credits, but not the Child Tax Credit
If you are unsure about your eligibility, it is best to check the latest IRS guidance or speak with a qualified tax professional.
What Should H-1B Households Do Now?
If you are part of an H-1B household and want to claim the Child Tax Credit, make sure that both you and your child have valid SSNs before filing your tax return. If your child does not yet have an SSN, you should apply for one as soon as possible.
Steps to take:
1. Apply for an SSN for your child at your local Social Security office. You can find information on how to apply on the Social Security Administration website.
2. Wait for the SSN to arrive before filing your tax return, if possible.
3. File your tax return using your SSN and your child’s SSN to claim the Child Tax Credit.
If you file with an ITIN and later receive an SSN, you may be able to amend your tax return, but you should check with the IRS or a tax professional for details.
What Are the Implications for Immigrant Families?
The continued SSN requirement for the Child Tax Credit means that many immigrant families, including some H-1B households, may not be able to claim this benefit right away. This can have a real impact on family budgets, especially for those with young children.
Impacts include:
– Families may miss out on thousands of dollars in tax credits
– Delays in receiving SSNs can mean waiting another year to claim the credit
– Some families may feel left out of benefits that are available to others
As reported by VisaVerge.com, many immigrant advocacy groups have called for changes to these rules, arguing that all taxpaying families should have access to the Child Tax Credit, regardless of their SSN or ITIN status. However, as of now, the law has not changed.
What Is the Future Outlook?
There are ongoing discussions in Congress about making tax credits more accessible to immigrant families. Some lawmakers have proposed bills that would allow ITIN holders to claim the Child Tax Credit, but these proposals have not yet become law.
What could change in the future:
– Congress could pass new laws to expand eligibility for the Child Tax Credit
– The IRS could update its rules if directed by Congress
– Advocacy groups may continue to push for changes
For now, the SSN requirement remains in place, and H-1B households filing with ITINs are not eligible for the expanded Child Tax Credit under the One Big Beautiful Bill Act.
Where Can You Find Official Information?
For the most up-to-date information on the Child Tax Credit and other tax benefits, visit the IRS Child Tax Credit page. This page provides official guidance, forms, and answers to common questions.
If you need to apply for an SSN, visit the Social Security Administration’s website.
You can also track the progress of tax laws and bills, including the One Big Beautiful Bill Act, on the U.S. Congress website.
Frequently Asked Questions
Can I claim the Child Tax Credit if I file with an ITIN?
No. Both the taxpayer and the child must have valid SSNs to claim the Child Tax Credit.
What if my child gets an SSN after I file my tax return?
You may be able to file an amended return to claim the credit, but you should check with the IRS for the latest rules.
Does the One Big Beautiful Bill Act change the SSN requirement?
No. The Act does not change the requirement that both the taxpayer and the child must have SSNs.
Are there other credits I can claim with an ITIN?
Some credits and deductions may be available, but not the Child Tax Credit. Check the IRS website for details.
Action Steps for H-1B Households
- Check your SSN status: Make sure both you and your child have valid SSNs before tax season.
- Apply early: If your child needs an SSN, apply as soon as possible to avoid delays.
- Stay informed: Follow updates from the IRS and Congress for any changes to tax credit rules.
- Seek help if needed: Consider speaking with a tax professional who understands immigration and tax issues.
Conclusion
The One Big Beautiful Bill Act brings important changes to tax credits in the United States 🇺🇸, but it does not change the basic rule that both the taxpayer and the child must have SSNs to claim the Child Tax Credit. H-1B households filing with ITINs are not eligible for the expanded credit under the new law. While there may be future changes, the current rules remain in place. For official guidance and the latest updates, always check the IRS Child Tax Credit page.
By understanding these rules and planning ahead, H-1B households can make informed decisions about their taxes and benefits. Stay tuned for any updates, and remember that official government resources are the best place to find accurate, up-to-date information.
Learn Today
One Big Beautiful Bill Act → 2025 U.S. law expanding tax credits including the Child Tax Credit for eligible families.
Child Tax Credit (CTC) → A U.S. tax benefit for families with qualifying children under 17 with valid SSNs.
Social Security Number (SSN) → A unique number issued for employment and tax purposes in the United States.
Individual Taxpayer Identification Number (ITIN) → A tax processing number issued by IRS for those not eligible for SSNs.
H-1B Visa → A U.S. work visa for specialized workers, often affecting tax and family benefits eligibility.
This Article in a Nutshell
The One Big Beautiful Bill Act expands the Child Tax Credit but requires valid SSNs for eligibility. H-1B families with ITINs cannot claim this credit until SSNs are obtained. Understanding these rules helps families plan taxes and benefits more effectively amid evolving legislation.
— By VisaVerge.com
