Work Authorization, SSN Validity, and Refundable Credits: The Impact of the One Big Beautiful Bill Act (OBBBA) for Tax Year 2025

Work Authorization, SSN Validity, and Refundable Credits: The Impact of the One Big Beautiful Bill Act (OBBBA) for Tax Year 2025:

Tax Year 2025 introduces a major compliance shift for refundable credits under the One Big Beautiful Bill Act (OBBBA): work-authorized SSN status becomes a gatekeeper issue for the claiming taxpayer—not just the child. This program provides a practitioner-ready framework for navigating CTC/ACTC/EITC/ODC eligibility when clients present SSNs with legends, DHS restrictions, mixed-status family facts, or late-issued SSNs.

Using a clear “traffic light” intake protocol, attendees will learn how to identify whether an SSN is unrestricted, DHS-restricted, or not valid for employment—and what that means for credit eligibility and due diligence documentation. The program then applies the rules through targeted scenarios (expired DACA, pending renewals, mixed-status households, ITIN-only parents with SSN children, and timing/residency traps), and closes with best practices to reduce preparer penalty exposure by strengthening reasonable inquiry, documentation, and retention practices.
ITIN all in one

Presented By:
Ruben Valdes, EA
Jason Daughtry, EA
Michael Shakarchi, EA
Michael Wallace EA
John Sheeley EA

Learning Objectives
After completing this program, participants will be able to:

1. Apply the TY 2025 SSN/work-authorization gatekeeper rules to CTC/ACTC/EITC/ODC eligibility decisions.

2. Distinguish SSN status using a card-legend “traffic light” protocol and identify required follow-up steps for DHS-restricted cards.

3. Identify “timing” and “still valid” pitfalls (issuance timing, expiration/renewal, residency traps) that change refundable credit outcomes.

4. Implement a repeatable intake workflow and documentation strategy to support reasonable inquiry and reduce preparer penalty risk.

1 IRS CE/CTEC/NASBA CPE

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*Self-Study recording not available for NASBA CPE credit.

IRS Program #: 7Q3WU-T-00878-26-O
CTEC Course #: 6248-CE-00227