Beginning with the 2025 tax filing season, the IRS will accept e-filed Forms 1040, 1040-NR, and 1040-SS even if a dependent has already been claimed on a previously filed return as long as the primary taxpayer on the second return includes a valid Identity Protection Personal Identification Number (IP PIN), the tax agency said on Nov. 21.
This move will help prevent tax refund delays next filing season, the IRS said. It will also help protect taxpayers against identity theft and reduce the time for the agency to receive the tax return and expedite the issuance of refunds for those with duplicate dependent returns. Before now, the second tax return had to be filed by paper.
Filers who claim tax credits like the Earned Income Tax Credit and Child Tax Credit will especially benefit from this change, the IRS said.
The agency is encouraging taxpayers who plan to file early in 2025 to sign up for an IP PIN before Nov. 23, 2024. After that date, the IP PIN system will be down for annual maintenance until early January 2025.
“Using an IP PIN is a way for taxpayers to help protect themselves against identity theft,” the agency said in a media release on Thursday. “With the new changes being made by the IRS, the IP PIN will also help protect taxpayers when someone fraudulently claims a taxpayer’s dependent.”
Signing up now for an IP PIN ensures taxpayers are ready to file electronically at the start of the 2025 tax season with an additional safeguard against identity theft and helps avoid issues involving dependents being claimed on multiple tax returns.
While the IP PIN system will be offline for scheduled maintenance later this month, the IRS reminded taxpayers they can still sign up for an IRS Online Account, which is the first step to get an IP PIN. It also allows taxpayers to securely access their tax return and account information from previous years, including information from their W-2 and 1099 forms. The IRS has been regularly adding new digital tools and features to the Online Account as part of its transformation work.
The IRS noted it will continue to reject e-filed returns claiming dependents who appear on a previously filed tax return unless a valid IP PIN is provided.
When a dependent has already been claimed on another tax return, the IP PIN provides an important new option, the agency stated.
“The taxpayer listed first on an e-filed tax return claiming dependents can provide their current year IP PIN when they file. If they do, the return will still be accepted. The spouse (if married filing jointly) and the dependents on the tax return don’t need to provide an IP PIN if they don’t have one,” the IRS said.
Taxpayers who don’t have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer. However, if the taxpayer obtains an IP PIN and e-files again with the IP PIN entered on the return, the IRS will accept the return as long as there are no other issues with it. Taxpayers will also still have the option to paper file returns with duplicate claims for dependents.
An IP PIN will be required when claiming duplicate dependents or children on Forms 1040, 1040-NR, and 1040-SS. It will also be required on Forms 2441, 8863 and Schedule EIC that are attached to Tax Type Form 1040.
Tax returns claiming duplicate dependents for prior years (tax years 2023 and 2022) still must be filed by mail if the dependents have been claimed on another return.
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Tags: Income Tax, IRS, Taxes
