US SB2974

Requires taxpayers claiming the Child Tax Credit, Earned Income Tax Credit, Saver's Credit, Saver's Match, and education credits (American Opportunity and Lifetime Learning) to have valid Social Security numbers authorized for employment, with both spouses on joint returns required to have valid SSNs

Creates a new "temporary work-authorized social security number" category for noncitizens with temporary work authorization, with cards indicating the number is valid only for the authorized employment period

Establishes mandatory information-sharing between the Department of Homeland Security, Social Security Administration, and IRS regarding temporary work authorization status, expiration dates, and reauthorizations

Imposes a fraud penalty of the greater of the claimed credit amount or $5,000 for claiming these credits with an expired or invalid temporary work authorization, with penalties aggregated if multiple credits are fraudulently claimed

Takes effect January 1, 2027, for the temporary work authorization SSN provisions, and applies to taxable years beginning after December 31, 2026, for the tax credit eligibility requirements