The IRS is making it easier for taxpayers to protect their information and avoid refund delays by accepting certain e-filed tax returns claiming dependents who have already been claimed on another taxpayer’s return, according to the IRS. This change will benefit filers claiming key tax credits like the Earned Income Tax Credit and Child Tax Credit. 

Beginning in the 2025 filing season, the IRS will 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 Identity Protection Personal Identification Number (IP PIN). This change will limit the time for the IRS to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns. The second tax return had to be filed by paper in prior years. 

Utilizing an IP PIN is a way for taxpayers to fight against identity theft. With the new changes from the IRS, the IP PIN will also help protect taxpayers when someone fraudulently claims a taxpayer’s dependent. The IRS wants taxpayers planning to file early next year to sign up for an IP PIN before Nov. 23. After that date, the IP PIN system will be offline for annual maintenance until early January 2025. 

Signing up now will mean taxpayers are ready to file electronically at the beginning of next year's tax season, with an added safeguard against identity theft. It will also help avoid issues that involve dependents being claimed on multiple tax returns. 

While the IP PIN system will be down for scheduled maintenance in late November, the IRS said taxpayers can still sign up for an IRS Online Account. An Online Account, which is the first step to getting an IP PIN, also lets taxpayers securely access their tax return and account information from prior years, such as data from their forms W-2 and 1099. The IRS is regularly adding new digital tools and features to the Online Account as part of the agency’s transformation work. 

An IP PIN is a six-digit number that stops someone else from filing a federal tax return utilizing a taxpayer’s Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for making sure of the safety of taxpayers’ personal and financial information. 

The IP PIN, known only to an individual and the IRS, confirms their identity when they electronically file their tax return, making it much harder for thieves to use their information fraudulently. 

The best way to sign up for an IP PIN is via IRS Online Account. The process requires identity verification. Spouses and dependents can also get an IP PIN if they complete the required verification steps. Once an IP PIN is released, it must be on electronic and paper returns. 

To obtain an IP PIN, taxpayers should create or log into their Online Account at IRS.gov and follow the steps for identity verification. Once verified, taxpayers must click on the profile tab to request their IP PIN. IP PIN users should utilize this number when filing their federal tax returns for the current calendar year and any prior years filed during that same period. 

For those unable to create an Online Account, there are alternate methods, such as in-person authentication at a Taxpayer Assistance Center. More information can be found on Get an Identity Protection PIN.

The IP PIN will be more valuable during the next filing season. Unless a valid IP PIN is provided, the IRS will still reject e-filed returns claiming dependents who appear on a previously filed tax return. 

The IP PIN offers a critical new alternative when the dependent has already been claimed on another tax return. The taxpayer listed first on an e-filed tax return claiming dependents can offer 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 do not need to offer an IP PIN if they do not have one. 

Taxpayers who do not have IP PINs will have their e-filed returns rejected if another taxpayer has already claimed one of their dependents. 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, assuming there are no other issues with it. Taxpayers can use the paper option to file their returns with duplicate claims for dependents. 

An IP PIN will be required when a taxpayer claims duplicate dependents or children on Forms 1040, 1040-NR, and 1040-SS. It will also be required on Forms 2441, 8863, and Schedule EIC, which are attached to Tax Type Form 1040. 

Tax returns claiming duplicate dependents for previous years (2023 and 2022) should still be filed by mail if the dependents have been claimed on another return, the IRS said.