IRS to accept duplicate dependent returns with an IP PIN

The Internal Revenue Service said Thursday it would begin accepting electronically filed tax returns that contain dependents who have already been claimed on another taxpayer’s return, as long as the taxpayer on the second return has an Identification Protection Personal Identification Number.

The move would help prevent tax refund delays next tax season, while still protecting taxpayers from identity theft. This change will especially help filers who claim tax credits such as the Earned Income Tax Credit and Child Tax Credit.

Starting in the 2025 filing season, the IRS said it would begin accepting accept 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 IP PIN. This change in policy will decrease the amount of time for the IRS to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns. Up until now, the second tax return had to be filed by paper. 

The IRS 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 offline for annual maintenance until early January 2025. 

Using an IP PIN enables taxpayers to protect themselves against identity theft. With the latest changes, the IP PIN will also help protect taxpayers when someone fraudulently claims a taxpayer’s dependent. 

Signing up now 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 down 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. The account also enables 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 periodically adding new digital tools and features to the Online Account as part of its transformation work. 

The IRS 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 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. 

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 gets 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 need to be filed by mail if the dependents have been claimed on another return.