Another Benefit of the IP PIN: Avoid Dependent-Related Refund Delays
Still E-file Returns When Dependent Already Claimed
Earlier this week, I published an article about IRS Identity Protection PINs (IP PIN) and how taxpayers can opt in to receive one. While the primary benefit of having an IP PIN is added security when filing income tax returns, I was recently reminded there is an additional advantage that’s especially relevant for parents and taxpayers claiming dependents.
🔐 A Quick Refresher on IP PINs
As a reminder, taxpayers can enroll in the IP PIN program by logging into their IRS Online Account. Once logged into the individual account, click on Profile and scroll down to the IP PIN section of the page, and follow the prompts to enroll or retrieve a previously assigned IP PIN.
This 6-digit number is required when e-filing and serves as a powerful fraud prevention tool. But there’s another potential benefit...
📣 What the IRS Announced
In November, the IRS issued a News Release IR-2021-294 with a headline that read:
"IRS takes steps to help prevent refund delays by accepting duplicate dependent returns with an IP PIN for 2025 filing season; taxpayers encouraged to sign up soon for IP PIN, Online Account"
This change allows tax returns with a dependent that has already been claimed on another filed tax return to still be e-filed - as long as a valid IP PIN is used on the second filed return.
🧾 Why This Matters
In the past, if a dependent was already claimed, the second tax return was rejected for e-file and had to be mailed in. A return that is mailed in results in delays - in processing and issuing of refund, which may cause financial harm to taxpayers that may be depending on the refunds that could include child tax credit, earned income tax credit, American Opportunity education credits.
🚨 Common Causes of Duplicate Dependent Filings
There are several reasons a dependent may be claimed on more than one tax return. One common scenario is when a dependent files their own tax return but fails to check the box that says: “Someone can claim: You as a dependent.” This often happens when a teenager gets their first W2 and uses a free online, filing tool, or when a college student away from home attempts to “help” by filing their own taxes.
Another reason may be parents that alternate claiming the child as a dependent. The child may have been claimed in error or out of spite. The IRS computer system only allows a tax ID number to be used once on a tax filing as a dependent. In prior years, the parent that filed first was granted the related tax benefits of claiming the child, while the parent filing second was to file by mailing in of the tax return and review of the mailed return causing additional delays in refund issuance.
✅ What’s New in 2025
Beginning with the 2025 tax filing season, the IRS will accept e-filed Form 1040-series returns even if a dependent has already been claimed elsewhere, as long as the primary taxpayer on the second return uses a valid IP PIN.
This means fewer delays, faster processing, and quicker refunds—even in situations that previously required a mailed return.
💬 Final Thoughts
This change has been missed by many tax professionals and is an added benefit of the IP PIN program—but one that could save time and reduce stress for many taxpayers. If you have clients (or family) who’ve run into this issue in the past, now is a great time to consider enrolling in the IP PIN program.
Have you seen this situation occur with your clients?
Drop a comment—I’d love to hear if this was helpful news.