2026 OnE Big Beautiful Bill Updates

IMportant changes for ITIN holders

Understand the new 2026 tax laws affecting your refund. See which deductions require SSN vs. ITIN eligibility.

2026 Tax Changes for ITIN Holders | Lopez Tax Service

Tax Breaks: SSN vs. ITIN Eligibility

Understanding which tax benefits require a Social Security Number

Tax Break	SSN Required?	ITIN Eligible?	Special Rules
Child Tax Credit (CTC)	Yes (taxpayer & child)	No	At least one spouse must have SSN if MFJ
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	No	Longstanding SSN rule
Education Credits (AOTC & LLC)	Yes	No	AOTC also requires school EIN
No Tax on Tips Deduction	Yes	No	Applies per return
No Tax on Overtime Deduction	Yes	No	Applies per person
Senior Deduction	Yes	No	Must be over 65

This is important if you're an ITIN holder or part of a mixed-status family here in Monterey County.

About the IRS and ICE Agreement:

You may have heard about an agreement between the IRS and ICE. In April 2025, they created an understanding about sharing information. The IRS can only share information about people with a final deportation order, and only for criminal investigations. Filing your taxes with an ITIN is still legal and protected.

New Deductions Available in 2026

Thousands of families in our community file with ITINs. New tax laws are changing what you can deduct:

Tips: Deduct up to $25,000 if you work in restaurants or hospitality
Overtime: Deduct around $12,500
Car Loan Interest: Deduct up to $10,000

The Catch: SSN Required

Most of these deductions require a valid Social Security number. If you're an ITIN holder, you might not qualify.

Child Tax Credit Changes

The Child Tax Credit is increasing from $2,000 to $2,200 per child, but now requires a Social Security number. If both parents have ITINs, you won't get this credit—though you may get a $500 credit instead.

Education Credits Ending

2025 is the last year you can claim education credits with an ITIN. Starting in 2026, both parent and student need Social Security numbers.

Mixed-Status Families May Benefit

If your family has a mix of ITINs and Social Security numbers, you might actually benefit more. But if everyone has an ITIN, expect potentially lower refunds.

Don't guess about this. Come talk to us at Lopez Tax Service. We've served Monterey County families for over 42 years, and we know exactly how these changes affect you.

2026 Deductions & Credits: What ITIN Holders Qualify For

Deduction / Credit

SSN Required?

ITIN Eligible?

Tip Income Deduction

Up to $25,000 in tip income can be deducted

✓ Yes

✗ No

Overtime Pay Deduction

Around $12,500 in overtime pay can be deducted

✓ Yes

✗ No

Car Loan Interest Deduction

Up to $10,000 in car loan interest

✓ Yes

✗ No

Child Tax Credit

$2,200 per child (increased from $2,000)

✓ Yes

✗ No*

Education Credits

American Opportunity & Lifetime Learning Credits

✓ Yes

✗ No**

For ITIN-Only Families

If both parents and all children have ITINs:

You won't qualify for the new deductions (tips, overtime, car loan interest)
Instead of $2,200 Child Tax Credit, you may receive $500 per child
2025 is your last year for education credits
Expect potentially lower refunds compared to previous years

For Mixed-Status Families

If some family members have SSNs and others have ITINs:

Family members with SSNs can claim the new deductions
Children with SSNs qualify for the $2,200 credit
You might actually benefit more from these changes
Strategic filing can maximize your refund

Why You Need Expert Help

These changes are complicated, and mistakes can be costly:

Claiming credits you don't qualify for can trigger audits
Missing credits you DO qualify for means leaving money on the table
Mixed-status families need careful planning
We've helped thousands navigate these exact situations

*ITIN holders may receive a $500 Credit for Other Dependents instead of the full Child Tax Credit
**Education credits available for ITIN holders through 2025 tax year only

IMportant changes for ITIN holders

Tax Breaks: SSN vs. ITIN Eligibility

New Deductions Available in 2026

The Catch: SSN Required

Child Tax Credit Changes

Education Credits Ending

Mixed-Status Families May Benefit

2026 Deductions & Credits: What ITIN Holders Qualify For

For ITIN-Only Families

For Mixed-Status Families

Why You Need Expert Help

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