What happens when a dependent accidentally claims themselves? New IRS rules for 2025 filing season in effect.

It happens more often than you’d think — a college student or young adult files their tax return before their parents, checking the wrong box and claiming themselves as a dependent. When their parents later e-file, their return is rejected, claimed credits are denied, and frustration sets in. Fortunately, the IRS rolled out new tools for 2025 to help resolve these mix-ups more efficiently, saving time for tax preparers and their clients in the thick of tax season.

With filing day just a week away, there are a few things to consider if you or your client find themselves in this situation.

What happens when a dependent claims themselves on a tax return?

Many students and young adults don’t understand when they’re considered a dependent for tax purposes. Sure, they might be 18, a college freshman and “technically” not dependent on their parents. However, if they don’t meet the IRS’s requirements of being a dependent for tax purposes, or their parents have a different view of their dependency status, checking the box indicating they are NOT a dependent can create headaches for everyone

Often, the problem is the result of a dependent wanting their refund quickly and not checking in with their parents or guardian. This can cause:

1. Duplicate claims: The IRS only allows one taxpayer to claim a dependent. If a dependent files and claims themselves, the return from the primary taxpayer (usually the parent or guardian) is rejected when e-filing.

2. Delayed refunds: If a parent tries to claim tax benefits such as the child tax credit (CTC) or the earned income tax credit (EITC) after the dependent has already claimed themselves, the parent’s return is flagged and potentially delayed. If the dependent goes to college, the parent cannot claim education credits like the American opportunity tax credit (AOTC) either.

Dependent claim changes for the 2025 filing season

Starting with the 2025 filing season (2024 tax returns), the IRS is making it easier to resolve these situations by allowing the second taxpayer (usually the parent or guardian) to e-file their return – even if their dependent has already been claimed. The parents must meet a few requirements to do so.

1. Create an IP PIN: The primary taxpayer must include a valid Identity Protection Personal Identification Number (IP PIN) when filing. This helps the IRS verify the taxpayer’s identity.

2. Re-file electronically: Parents then use the IP PIN to refile their return electronically. If a dependent accidentally claimed themselves in prior years, the parent or guardian had to file a paper return amending the dependent status. This process led to extended processing times and delayed refunds.

Why do I need an IP PIN?

An IP PIN is a unique six-digit number issued by the IRS to prevent fraudulent filings and identity theft. Starting in 2025, an IP PIN will be mandatory if a dependent is accidentally claimed, allowing the second taxpayer to submit their return electronically and avoid refund delays. Taxpayers can request an IP PIN online through the IRS IP PIN tool or by completing Form 15227, Application for an Identity Protection Personal Identification Number (IP PIN). Once enrolled, the IRS issues the taxpayers a new IP PIN annually and they should include it with their return each year.

What to do if a dependent claims themselves

Here’s an example to demonstrate the process. Let’s say Lucy’s 21-year-old daughter Madison claims herself on her tax return to get a refund of withholding. Madison made $3,000 working part-time last year. Lucy provided more than 50% of her daughter’s support since Madison goes to college, works part-time and lives at home. Madison got her refund, but when Lucy tried to file her return claiming Madison as a dependent, the return was rejected.

Here are the steps a tax pro will take to rectify the situation.

1. Confirm the error: Review the dependent’s return to verify they mistakenly claimed themselves.

2. Amend the dependent’s return: The dependent may need to file Form 1040-X to correct the error and indicate that they are being claimed as a dependent.

3. File the parent/guardian’s return: Include an IP PIN when e-filing to prevent rejection and process the return smoothly.

4. Review credit eligibility: Claim any applicable credits, such as the CTC, EITC or AOTC, if eligible.

Navigating dependent-related filing issues can confuse taxpayers and frustrate those relying on important tax credits. If you are a tax professional, staying up to date on the IRS’s evolving e-file options – like the new IP PIN requirement – allows you to better guide clients through the process of resolving common filing errors with confidence and clarity.

NATP members are committed to providing accurate, timely advice in even the trickiest of tax situations. As the IRS modernizes filing options, having a trusted tax expert on your side makes all the difference. For more updates like this, subscribe to our blog and get notified when a new post is published!