Child's Social Security Number is used on another Tax Return

December, 20 2024 by Jean Lee Scherkey, EA

Help! My child’s Social Security number was used on another tax return. What do I do?

Identity theft of any kind is a bumpy ride, and the potholes are no smaller when we are dealing with the identity of our favorite little munchkin. The thought of our child’s identity befalling this fate before they have launched into adulthood, or at the very least attended a birthday party that didn’t involve a superhero or bounce house, is often unfathomable. Setting financial affairs right after they have been tossed upside down by identity theft can take hundreds of hours of paper shuffling, filling out forms, and waiting on hold. And let’s not forget the bottles of hair dye needed to treat the locks of hair that turned grey from the stress. If only resolving tax-related identity theft was nice and easy! While we can’t snap our fingers and make the whole mess go away, there are guidelines, tips, and precautions you can take to make the journey less painful. So, let’s buckle up and charge ahead.
 

How will I know if my child’s Social Security number was compromised?

You may be reading this question and thinking, Isn’t it obvious? Surely if your return was rejected for e-filing because your dependent was claimed on another return, you would know there’s a problem, right? Well… not so fast. Plenty of people who successfully e-filed their return have been lulled into thinking all was well, only to receive a letter later from the IRS stating otherwise. Before discussing what happens if there is an issue with your child’s Social Security number after successfully e-filing your return, let’s take a closer look at what happens if your return is rejected for e-filing for the same reason.
 

Your return was rejected for e-filing.

If you receive an e-file rejection error message that reads “Duplicate Social Security Number,” it is likely that you, your spouse, or your dependent’s Social Security number was used on another tax return that was already filed. You may need to dig into the rejection diagnostics of your tax software to confirm that the Social Security number in question belongs to your child. Once this is confirmed, don’t hit the panic button quite yet.

The first thing you want to do is grab a copy of your submitted tax return and your child’s Social Security card. Even if you have the number memorized, it is a good idea to compare the name and number on the card with what is listed on the return. It is very easy to transcribe a couple of digits, especially if you are making dinner and playing referee between your kid, spouse, and Rover at the same time. If your child’s name on their Social Security card is “James,” but you entered their name as “Jimmy” on the return, this might cause a mismatch. Once you’ve corrected your child’s name or Social Security number, the return should successfully e-file.
 

I entered my child’s Social Security number correctly. Now what?

If you checked, rechecked, and confirmed you entered your child’s name and Social Security number correctly on your return, you will need to go back to basics to file your return. Dust off that old dot matrix and print out your return. Once signed and dated, you will file it the old-fashioned way – by mail. Be sure to mail your return certified with a return receipt request to ensure timely filing. (And don’t forget the postage!) Usually, it takes the IRS longer to process returns that are paper filed. In addition, the IRS may not release your refund until any processing issues or audits directly related to your return are resolved. So, be prepared to wait for an eternity - somewhere between how long it takes to pour ketchup out of a newly opened glass bottle and standing in line with four kids under the age of 7, you being the only adult, waiting to hop on their favorite amusement park ride on July 4th when you didn’t purchase a Lightning Lane pass.

Once the IRS processes your return, they may send you IRS Notice CP87A, You need to make sure someone is your dependent, or another version of Notice CP87, such as CP87C, You need to make sure someone qualifies as your dependent. (IRS Notice CP87C is generally sent when a person who is listed as a dependent on your return may have earned too much money to be claimed as such.) The notice you receive will depend on your facts and circumstances. No matter which letter you receive, any refund you claimed on your return will be delayed until the issue is resolved. However, this doesn’t mean that if you have a balance due you should wait to pay the tax. Waiting could result in owing interest and penalties. Welcome to your master class on the art of patience.

A taxpayer whose return was successfully e-filed may also receive IRS Notice CP87A or another version of the notice. Usually, the IRS approves the first return that is e-filed, even if it contains a duplicate Social Security number. Now, you may be wondering what would happen if your child had a summer job and needed to file their own return. Will this cause you and your child’s return to be held up by the IRS? As long as your child does not claim their own exemption when they file their return (in other words, your child checks the box stating that someone else can claim them as a dependent), neither you nor your child’s return should be rejected for e-filing due to a duplicate Social Security number.
 

IRS Notice CP87A 

As mentioned above, another way a taxpayer discovers that their child is listed on another income tax return is when they receive IRS Notice CP87A. This notice informs the taxpayer that their qualifying child or other dependent’s Social Security number was listed on another submitted tax return. You will know which one of your bambinos the IRS is referring to as the notice will list the last four digits of the affected child’s Social Security number. There’s no doubt that reading this notice can cause anyone’s breath to catch in their throat. However, as with all love letters from the IRS, it is important to read through the entire notice and respond in a timely manner, if required. Let’s break down the contents of this notice.

1. First and foremost, the notice asks you to confirm that the Social Security number entered on your return is identical to the number on your child’s Social Security card. Remember, it’s not difficult to mistake a “7” for a “1,” etc.
2. If the Social Security numbers match, your next step is to review the IRS dependency rules to ensure you are the person who is entitled to claim your child as a dependent or qualifying child. Page 2 of the notice provides some basic but important dependency rules. If you need more detailed information on these rules, you may want to review the IRS’s “Dependents” webpage, which is brimming with key information. Additionally, the IRS has an interactive app on its website to help taxpayers determine if they may claim someone as a dependent. The app can be accessed here.
3. If, after you go through the steps above, you discover you made a data entry mistake, the IRS asks that you notate the error and be sure to enter the correct Social Security number on next year’s return. At this time, the IRS asks that you not contact them or take any other action.
4. You reviewed the dependency rules and realized your child’s other parent was entitled to claim junior that year. These things happen to the best of us. The IRS asks you amend your return by filing Form 1040X, Amended U.S. Individual Income Tax Return as soon as possible. If you are on good terms with the other parent, you may want to let them know about the error and that you are correcting it. Chances are the other parent received the same notice and is trying to figure out what happened.

Now for the tough part: If your child’s Social Security number was entered correctly and you were entitled to claim your bundle of joy as your qualifying child, the notice states you do not need to contact the IRS or send any documentation at this time. Talk about a tall order, especially if the IRS is holding your federal refund. Depending on your filing status and income, claiming a qualifying child as a dependent on your tax return can generate a significant refund because of the Child Tax Credit, Additional Child Tax Credit, Child and Dependent Care Expense Credit, and Earned Income Tax Credit. So, why can’t the IRS issue your refund now and sort out who is entitled to what later? While this may seem practical, it is often not feasible. The IRS is sending notices to at least two different parties and waiting for responses. If one of the taxpayers erroneously claimed their child as a dependent in a year they were not entitled to and files an amended return, then the IRS can move forward and complete the processing of each return and issue any refunds. It is not cost-effective for the IRS to issue refunds, knowing that at least one of the taxpayers may not qualify for all or part of the refund shown on their submitted return. Also, it is very difficult to pay back a refund that’s already been spent, especially for those living on a tight budget.
 

What happens now?

You entered your child’s Social Security number correctly and are entitled to claim them as a dependent on your return. Yet, IRS Notice CP87A indicates you don’t need to take any action at this time. What if the IRS does not receive an amended return removing your child as a dependent on their return? How will this ever get resolved?

If the IRS does not receive an amended return removing your child as a dependent, the IRS’s next step will be to audit each return that listed the child as a dependent to determine which taxpayer is entitled to claim the dependency. Usually, the IRS will send each taxpayer IRS Notice CP75A along with a copy of Form 886-H-DEP that lists the supporting documents you need to provide. Once the IRS reviews the responses and all the documentation provided, they will make a determination.

As I’ve highlighted, this is a long, long process. It has typically been taking so long that the IRS Taxpayer Advocate took notice. (The Taxpayer Advocate Service is an independent section of the IRS, where its employees assist taxpayers experiencing economic hardship and need assistance in resolving their unresolved tax problems.) On June 6, 2024, Erin Collins, the National Taxpayer Advocate, published a blog post writing that as of April 2024, it is taking the IRS nearly 22 months to work through cases where a taxpayer or their dependent discover they are a victim of tax-related identity theft or received a notice from the IRS that another taxpayer already filed a return using their or their dependent’s Social Security number. Given this time period, you will most likely need to file next year’s return before the issues with your prior year’s return are resolved. While there is little you can do to speed up the process at the IRS end (beyond ensuring you respond to every notice and request completely and timely), there are some proactive steps you can take from your end.
 

Check the usual suspects.

If the fickle finger of fate turned your way and someone else claimed your child as a dependent, taking some proactive steps may keep you from going through a dependency audit and waiting nearly 2 years to receive your refund. As soon as you see trouble on the horizon, whether your return was rejected for e-filing or you received a CP87A, and you made sure the name and Social Security number were entered correctly, a little detective work is in order.

As any good gumshoe will tell you, whether it be Liz Danvers or the Scooby gang, your attention should first turn to the usual suspects in your life. You want to rule out any family member who may have claimed your child on their tax return by mistake. This could have been a grandparent or uncle who lived with you during the year and thought they could claim your child as their dependent. Perhaps a former spouse, significant other, or the other parent claimed Junior. If you were the custodial parent, in order for the other parent to claim your child as a dependent, you would need to release the dependency to them by filling out and signing Form 8332, “Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.”

If the other parent or family member made a mistake and claimed the child on their return when they should not have, they can file an amended return to take the child off their return as a dependent. After their amended return is processed (they can find out if their amended return was processed by creating an online account on the IRS website), you can go ahead and file your income tax return if you haven’t already. You may have to file an extension and submit your tax return later than you usually do. While this may be frustrating and, in some cases, financially painful, if you are anticipating a large refund, it may be a faster route in the long run. If you have already filed your return and received a CP87A or similar notice, the IRS should complete the processing of your return and issue any refunds within a couple of months after processing your family member’s amended return.

Let’s not rule out our little darling as a prime suspect. Don’t dismiss the possibility that your kiddo filed their own return; after all, they’re a chip off the ole’ block. We all remember the excitement of our first real job, the elation of that first paycheck, and then crushing disillusionment, realizing the fruits from our toil are shared with Uncle Sam – ahh, youth. If your child filed their own return in hopes of a refund, it is possible that they did not check the box stating that someone else can claim them as a dependent. Your rugrat will need to file an amended return, marking the box that they are claimed as a dependent on someone else’s return on the first page of Form 1040. Depending on how much your child earned, they may end up receiving a smaller refund (if they had withholding) or perhaps even owe some tax. If your child had unearned income, such as interest or dividends, then the Kiddie Tax rules would apply. The IRS website has more information on the Kiddie Tax rules.
 

IRS Form 14039, Identity Theft Affidavit

You checked with your co-parent, grandparents, in-laws, significant other, and siblings, and none of them claimed your kiddo as a dependent. You even went to your little darling and confirmed they did not file a return and claimed themselves. At this point, your child’s Social Security number may have been stolen, or someone may have unintentionally entered the wrong Social Security number on their return. Now it is prudent to file an identity theft affidavit with the IRS as soon as possible. This is done by filling out and submitting Form 14039, Identity Theft Affidavit. If you have not filed your return yet because it was rejected for e-filing, you can attach a completed Form 14039 to the back of your return when you send it by mail. The IRS has an informative webpage on when to file an identity theft affidavit, which can be accessed here.
 

Proactive Steps You Can Take

IRS Identity Protection PIN

The possibility of identity theft can make even the most positive person feel helpless. Taking proactive steps can help stamp out the helplessness and put a little pep back in your step. One way to take back control is to use an IRS Identity Protection PIN (IP PIN), which is a six-digit number a taxpayer uses when they file their return. Only the taxpayer and the IRS know the number, which changes yearly. Initially, IP PINs were only available to taxpayers if the IRS confirmed they were a victim of tax-related identity theft. Now, any taxpayer can apply online for an IP PIN for themselves through their personal IRS online account. Parents can request an IP PIN for their underage dependents by filing Form 15227, Application for an Identity Protection Personal Identification Number by mail. Taxpayers may also request an IP PIN in person at their local IRS Taxpayer Assistance Center. Obtaining an IP PIN is also beneficial for people who don’t have a filing requirement – for instance, a senior whose only income is Social Security benefits. If their Social Security number is compromised and someone other than the taxpayer tries to file a return using their Social Security number and does not include the IP PIN, the IRS will be alerted that the return may be fraudulent. An IP PIN is valid for only one year, and a new number is generated yearly. The IRS will automatically enroll a person they confirm is a victim of tax-related identity theft into the IP PIN program and annually mail Notice CP01A containing their new IP PIN for the year. For more information regarding Notice CP01A and the changes to the letter’s format, please click here.

New for the 2025 tax year! IRS to accept returns with a duplicate dependent Social Security number if the primary taxpayer has a current year IP PIN.

On November 21, 2024, the IRS announced plans that should help ease the frustration and delays some taxpayers face when their return is rejected for e-filing because their dependent’s Social Security number was already used on another return. Beginning with the 2025 filing season, the IRS will accept an e-filed return even if the dependent’s Social Security number was used on a previously accepted return. This is providing the primary taxpayer used a current year IP PIN. (Remember, anyone can apply for an IP PIN online. You do not have to be a confirmed victim of tax identity theft to obtain an IP PIN. The IRS will mail confirmed victims of tax-related identity theft notice CP01A Notice annually with their new IP PIN for the year.) Currently, it is not necessary for the secondary taxpayer (spouse/partner) to apply for or have an IP PIN in order for the IRS to accept a return with a duplicate Social Security number. Also, the primary taxpayer does not need to apply for an IP PIN for their dependent, though it is always advisable.

This is a major step forward and a departure from standard procedures where the taxpayer whose return was rejected because of a duplicate dependent Social Security number had to print their return and submit it by mail. According to the IRS announcement (IR-2024-294), primary taxpayers whose return is rejected because of a duplicate dependent Social Security number can apply for an extension, if needed, successfully obtain an IP PIN, and attempt to e-file their return again, including their new IP PIN. If there are not any other issues with the return, the IRS should accept the return as filed. For more information, please review the IRS new release.
 

File next year’s return as early as possible.

Due to the exorbitant amount of time the IRS takes to resolve these issues, you may need to file next year’s return before the duplicate Social Security number issue from last year’s return is resolved. Filing next year’s return as early as possible may be beneficial, as the first return e-filed with the Social Security number in question should be accepted by the IRS if there are no other issues with the return. Being the first to file, you may not have to file your return by mail. However, keep in mind that once a taxpayer’s account has been flagged with a possible identity theft issue, it may take the IRS longer to process future returns until the identity theft is resolved. Also, once a state tax agency is notified of a possible identity theft issue, the state tax agency may manually review any returns filed in the future. This could mean a delay in receiving future federal and state tax refunds. If you requested your refund be applied to next year’s return, the IRS will not apply this credit until the identity theft issue is resolved. Obtaining an IP PIN before filing next year’s return may make this issue moot.
 

How do I find out who used my child’s Social Security number?

It is a chilling thought to think someone out there could be using your child’s Social Security number. Any parent would want to know who was using it and why. Federal privacy laws do not permit the IRS to disclose a redacted copy of a fraudulent return if the person whose Social Security number was compromised was listed as a dependent. Generally, only the primary or secondary taxpayers listed on a return may request a redacted copy of the fraudulent return filed. (A redacted copy is one where certain information has been blacked out.) Parents and guardians can request a redacted copy of their child’s fraudulent return if the child was listed as the primary or secondary taxpayer and not as a dependent. While the redacted copy will not provide a full view of the name(s) used on the fraudulent return as well as the address and taxpayer identification numbers, generally, the first four letters of individuals' first and last names will show unless the first or last name is four letters or less. In this case, the IRS will only show less than four letters.

Although the full identity of the people listed on the fraudulent return may not be available, other valuable information can be obtained. By reviewing the return, you can determine if other personal information may have been compromised. For example, did the fraudulent return include information about where you are employed? If you own a home, was your mortgage interest listed on Schedule A, Itemized Deductions? Taxpayers may request a copy of the fraudulent tax return with their or their child’s (if the child was listed as the primary or secondary taxpayer) Social Security number by submitting Form 4506-F, Request for a Copy of a Fraudulent Tax Return, by mail or fax. Remember that the IRS will not provide a redacted copy of the fraudulent return until the identity theft issue is fully resolved. The IRS webpage “Instructions for requesting copy of fraudulent returns” provides lists of the required information that is required when submitting Form 4506-F.
 

Potential Pitfalls to Keep in Mind

Frozen Refund

While the IRS sorts out who’s who and works to determine which return is valid, your return will be in limbo. Your refund may be frozen until the matter is resolved. For some people, this can be a tremendous financial hardship. If you find yourself in imminent financial dire straits (for example, unable to pay your rent and facing eviction or cannot pay your utility bills and facing a shutoff) because your refund is delayed, you can contact the IRS Taxpayer Advocate Service through their website or phone number 1-877-777-4778.
 

Delay in Applying Overpayment to Next Year’s Return

Just like refunds are frozen, the overpayments you requested to be applied to next year’s return will not be processed until the identity theft issues are resolved. Because this process takes up to two years, taxpayers may receive a collection notice for next year’s return because their prior year’s refund was not applied, creating a balance due. If this happens to you, contact the IRS Identity Protection Specialized Unit at 1-800-908-4490 (within the U.S.) or 1-267-941-1000 (international taxpayers). When speaking with the IRS, please explain that your prior year’s overpayment is on hold due to an identity theft issue on your account and request that the representative place a code on your account to delay the progression of collection activities and notices.

Tax Transcripts to Third Parties

When applying for a new mortgage loan or refinancing a current mortgage, the mortgage lenders usually request a copy of the applicant’s IRS tax transcript. However, during the time a taxpayer’s account is flagged for identity theft, the IRS will not send out copies of a taxpayer’s tax transcript to third parties like mortgage lenders, even if requested. There is a workaround for those in this position. Taxpayers will need to request a copy of their tax transcript from the IRS and then forward it to the mortgage lender or other third party requesting the information. The mortgage lender should be notified that this process may take longer. Additional information on IRS transcripts can be found on the “Get your tax records and transcripts” IRS webpage.
 

Final Words

If you find that your child’s Social Security number was used on another tax return, hopefully, it’s because your little darling tried to file their own return for the first time or there was a misunderstanding, and the other parent inadvertently claimed them as a dependent. But if this is not the case and it looks like your child’s Social Security number may have been compromised, take a deep breath and know that while the road may be long, there are steps you can take to resolve the issue. In addition to the information included in this blog, the IRS has published IRS Publication 5027, “Identity Theft Information for Taxpayers,” which includes additional useful resources not included in this blog.

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