The One Big Beautiful Bill (OBBB), also known as the Working Families Tax Cut Act, introduced several changes to U.S. tax laws, including many that affect families who use an individual taxpayer identification number (ITIN) when filing. In short, many popular tax credits and deductions now require a valid Social Security number (SSN), not just an ITIN.
This doesn’t mean ITIN filers can’t file a tax return anymore — you definitely can! But the eligibility requirements for certain tax benefits have changed in ways that impact working families, especially mixed-status families where some members have SSNs and others only have ITINs.
Let’s walk through the difference between SSNs and ITINs, what changed for tax year 2025, and what options you have going forward.
Note: The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
At a glance
- The OBBB now requires a valid SSN to claim certain major tax benefits, like the Child Tax Credit.
- An ITIN alone is no longer enough to claim some tax credits and new tax deductions.
- Mixed-status families may still qualify for some credits if at least one spouse and the children have SSNs, depending on the credit.
- ITINs are still valid for filing a tax return, but the eligibility requirements for claiming certain tax breaks are much stricter.
What are taxpayer identification numbers?
A tax identification number (often called a tax ID number) is any number the Internal Revenue Service uses to track tax obligations, income, and eligibility fortax benefits. Basically, it’s how the IRS knows who you are when you file a tax return. The most common tax ID numbers are SSNs and ITINs, but you may have another kind of number depending on your situation:
- Social Security number (SSN): A number used for U.S. citizens, resident aliens, and certain authorized non-citizens, which we will cover in more detail below.
- Individual Taxpayer Identification Number (ITIN): An ID for those who need to pay U.S. taxes but don’t qualify for an SSN, which we also cover in more detail below.
- Employer identification number (EIN): A business ID number used by employers, corporations, and other business entities to report income, payroll, and fulfill their tax liability.
- Adoption taxpayer identification number (ATIN): A temporary number issued for children being adopted in the U.S. when parents can’t get an SSN right away but still need to claim the child on their tax return.
- Preparer tax identification number (PTIN): Required for paid tax preparers who file or assist with federal income tax returns on behalf of someone else.
So, all of these are considered taxpayer identification numbers, but they are used for different purposes. The main ones we will go over in this article are SSNs and ITINs, so let’s dive a little deeper into these.
What is a Social Security number?
An SSN is the most common tax identification number in the U.S. It’s a nine-digit number issued by the Social Security Administration (SSA) to U.S. citizens, resident aliens, and certain non-citizens authorized to work.
What does it mean to have a “valid” SSN?
Not every SSN counts the same when it comes to tax credits. A valid Social Security number is one that is:
- Issued by the SSA: Temporary or unofficial numbers don’t qualify.
- Valid for employment: This means the person is authorized to work in the U.S. The card should state, “Valid for work only with DHS authorization,” if the person’s work authorization is tied to their immigration status. Those are still considered valid SSNs for tax purposes.
- Not revoked or expired: SSNs don’t technically expire, but if someone was mistakenly issued one or their immigration status changed, it could be reclassified.
Not all SSNs meet the OBBB’s requirements. The IRS uses the term “valid SSN” in the tax code to distinguish between tax ID numbers that qualify for tax breaks and those that do not. For example, an SSN marked “Not valid for employment” can still be used to file a tax return, but it won’t qualify the taxpayer for certain refundable credits, such as the Additional Child Tax Credit (ACTC) or American Opportunity Credit (AOTC).
What is an ITIN?
An ITIN is another type of taxpayer identification number created by IRS. It’s a nine-digit number issued to individuals who need to file taxes but are not eligible for an SSN due to immigration status or other reasons.
Who needs an ITN?
You need an ITIN if:
- You’re a non-citizen who has U.S. tax obligations but can’t get an SSN.
- You’re a dependent or spouse of a U.S. citizen or resident alien.
- You’re a nonresident required to file a U.S. tax return.
Common situations include international students, certain foreign investors, and undocumented workers who still pay federal income tax.
Understanding the difference between ITIN and SSN
ITINs and SSNs are both tax identification numbers, but they serve different purposes. Here’s a quick breakdown of the differences:
| Feature | SSN | ITIN |
| Issued by | Social Security Administration | IRS |
| Who gets it | U.S. citizens, residents, authorized workers | Non-citizens without SSNs |
| Work authorization | Yes | No |
| Use for credits | Eligible for most credits, as long as all other requirements are met | Now more restricted under OBBB rules |
Breakdown: Which credits and deductions require a valid SSN in 2025?
Before we dive into the specifics of what has changed for each tax break, here is a quick breakdown of popular tax credits and deductions and whether they can be claimed using an SSN or ITN:
| Tax break | SSN required? | ITIN eligible? | Special rules |
| Child Tax Credit (CTC) | Yes (both taxpayer and qualifying children) | No | At least one spouse must have an SSN if filing jointly. |
| Additional Child Tax Credit (ACTC) | Yes | No | Same SSN rules as CTC. |
| Credit for Other Dependents | No | Yes | Still available to ITIN filers. |
| Earned Income Tax Credit (EITC) | Yes (both taxpayer and qualifying children) | No | Long-standing SSN rule (pre-OBBB). |
| Education credits (AOTC & LLC) | Yes (both taxpayer and student) | No | AOTC also requires school EIN. |
| No tax on tips deduction | Yes (person claiming tips income) | No | Deduction applies per tax return, not per person. |
| No tax on overtime deduction | Yes (both spouses) | No | Deduction applies per person, not per return. |
| Senior deduction | Yes (taxpayer only) | No | Must be over 65 to qualify. |
How do OBBB limits affect tax credits for ITIN filers without SSNs?
This is where things recently got tricky. Under the OBBB, the law now requires valid SSNs for certain credits and deductions. If you only have an ITIN, you may lose access to the following tax benefits.
Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)
As of 2025, both the parent (taxpayer) and the child must have valid SSNs to claim. Previously, only the child needed a valid SSN.
What this means: Families where both parents have only ITINs can’t claim the CTC or ACTC, even if the qualifying child has a valid SSN. For those married filing jointly, at least one spouse must have a valid SSN to qualify. Taxpayers filing as single or head of household must have a valid SSN to qualify.
Examples:
- A married couple has two U.S.-born children (both with SSNs). One spouse has an SSN, and the other spouse has an ITIN. They are eligible to claim the CTC and ACTC when filing jointly.
- A single parent who has an ITIN is not eligible, even if their child has an SSN.
- A married couple where both spouses and all children have SSNs are eligible.
No tax on tips deduction
No tax on tips is new deduction for tax year 2025 that requires a valid SSN for eligibility. It lets you deduct up to $25,000 in qualified tips per tax return (not per spouse).
What this means: Since this deduction is claimed per return, not per spouse, it makes things a little less clear for mixed-status households. If you both earn tip income and file jointly, but only one spouse has an SSN, it’s not clear whether the spouse without an SSN can deduct their tip income at this time. Until the IRS provides more guidance, the safest assumption is that only the tips tied to the spouse with a valid SSN can be deducted.
Examples:
- A married couple filing jointly where both spouses report tip income, and both have SSNs, can deduct the full amount of tips earned (up to $25,000).
- One spouse has an SSN and reports $15,000 in tips, while the other spouse has an ITIN and reports $10,000 in tips. The couple can likely deduct the $15,000 connected to the SSN-holder’s income on their joint return, but likely not the additional $10,000 earned by the ITIN spouse (still unclear).
- A single filer with only an ITIN cannot claim the deduction.
- A single filer with a valid SSN can deduct their full reported tips.
No tax on overtime deduction
No tax on overtime is a new deduction for tax year 2025 that requires a valid SSN to claim. Unlike no tax on tips, this benefit is tied to filing status, not per tax return. It lets you deduct up to $12,500 of qualified overtime compensation per year (or $25,000 if filing a joint return).
What this means: You (and your spouse, if filing a joint return) must have a valid SSN to claim this deduction.
Examples:
- A married couple where one spouse has an SSN and earns overtime, but the other has an ITIN, cannot claim the deduction.
- A married couple where both spouses have SSNs is eligible.
- A single filer with an ITIN who earns overtime is not eligible.
Education credits (American Opportunity Credit and Lifetime Learning Credit)
As of 2025, two education credits now have an SSN requirement: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). For the AOTC, you must also list the school’s EIN. Previously, you could claim these education credits just by having a valid ITIN. The AOTC provides a maximum credit amount of $2,500 per student, while the LLC is limited to $2,000 per return.
What this means: If the student has an ITIN instead of an SSN, they (or their parent, if the student is a dependent) cannot claim the AOTC or LLC, even if the parent has a valid SSN. The IRS can disallow the credit immediately if the required SSN or EIN is missing, treating it as a clerical error instead of requiring an audit.
Examples:
- A parent with an SSN claiming an education credit for their student dependent child with an ITIN is not eligible.
- A parent with an ITIN and a student child with an SSN is also not eligible.
- Two parents file jointly — one has an SSN and the other has an ITIN. They can claim an education credit as long as the student child also has an SSN.
Senior deduction
The OBBB introduced an extra deduction for seniors, which also requires the taxpayer claiming it to have a valid SSN. It allows those 65 and older to claim an extra $6,000 tax deduction in addition to the usual senior deduction, as long as they meet the income requirements.
What this means: Seniors filing with an ITIN won’t be able to take advantage of this new deduction. If filing jointly, taxpayers with a valid SSN can claim the extra deduction for themselves, even if their spouse has an ITIN. However, the spouse with an ITIN will not be able to claim the extra deduction.
Examples:
- A 67-year-old taxpayer with an SSN qualifies for the senior deduction.
- A 75-year-old taxpayer with only an ITIN is not eligible.
- Both spouses are 65 or older, but one has an SSN and one has an ITIN. They can claim a $6,000 deduction (for the spouse with an SSN).
- If both spouses are 65 or older and both have SSNs, they can claim a combined $12,000 deduction.
FAQs
The bottom line
The One Big Beautiful Bill changed the requirements for several tax credits and deductions, especially for ITIN filers. While you can still file taxes with an ITIN, you may lose access to valuable credits, including the Child Tax Credit, education credits, and new tax breaks like the no tax on overtime deduction.
For many working families, this means rethinking how to approach tax season (especially in mixed-status families). When you’re ready to file, TaxAct can help ease some of the stress by guiding you through the filing process and confidently handling these tax changes for you.
This article is for informational purposes only and not legal or financial advice.
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