Taxes can be daunting, but protecting your identity while filing is crucial. If you've received an Identity Protection PIN (IP PIN) from the IRS, you're likely wondering what it is and, more importantly, how to use it with TurboTax. Don't worry, you're in the right place! This comprehensive guide will walk you through everything you need to know to successfully use your IP PIN and ensure your tax return is filed securely.
Ready to make sure your tax return is accepted without a hitch? Let's dive in!
Understanding Your IP PIN: What it is and Why it's Important
Before we get into the "how-to," let's clarify what an IP PIN is. An Identity Protection Personal Identification Number (IP PIN) is a six-digit number issued by the IRS to help prevent identity thieves from filing fraudulent tax returns using your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Think of it as an extra layer of security, like a secret handshake between you and the IRS. If you have an IP PIN, it means the IRS requires you to enter it when you file your federal income tax return, whether electronically or by paper. If you don't enter it, or if you enter an incorrect one, your e-filed return will be rejected. This applies to you, your spouse (if filing jointly), and any dependents who have been issued an IP PIN.
It's important to note that an IP PIN is different from the 5-digit Self-Select PIN that some tax software, including TurboTax, might use as an electronic signature. Your IP PIN is provided by the IRS, while the Self-Select PIN is something you create.
Step 1: Confirm You Have an Active IP PIN for the Current Tax Year
Have you received a CP01A Notice from the IRS for the current tax year? This is the official letter that contains your annual IP PIN. Each IP PIN is valid for only one tax year. Even if you had one last year, you'll receive a new one for the current filing season.
Sub-heading: What if I didn't receive a CP01A Notice or lost it?
Don't panic! The IRS provides several ways to retrieve your IP PIN:
The fastest and easiest method is through your IRS Online Account. If you don't have one, you'll need to register and verify your identity. Once logged in, you can usually find your IP PIN under your "Profile" tab.
If you're unable to access your online account, or if your Adjusted Gross Income (AGI) on your last filed return is below certain thresholds (e.g., $84,000 for individuals, $168,000 for joint filers, though these numbers can change), you might be able to request an IP PIN by filling out Form 15227, IP PIN Application. The IRS will then call you to verify your identity.
As a last resort, you can call the IRS Identity Protection Specialized Assistance line at 1-800-908-4490 for help. Be aware that this method can take up to 21 days to receive your IP PIN by mail.
It's crucial to retrieve your IP PIN before attempting to file your taxes. Without it, your e-filed return will be rejected.
Step 2: Navigate to the IP PIN Section in TurboTax
Once you have your current tax year's 6-digit IP PIN in hand, it's time to enter it into TurboTax. The exact navigation might vary slightly depending on whether you're using TurboTax Online or the desktop software, and which version you have.
Sub-heading: For TurboTax Online Users:
Log in to your TurboTax account and open your tax return. You'll likely see a "Take me to my return" or similar option.
Once your return is open, look for the "Federal" tab (sometimes labeled "Federal Taxes").
Under the "Federal" tab, locate and click on "Other Tax Situations" or "Other Tax Forms."
Scroll down until you find the section labeled "Other Return Info" or "Identity Protection PIN."
Click on "Start" or "Revisit" next to "Identity Protection PIN."
Sub-heading: For TurboTax Desktop Software Users:
Open your tax return in the TurboTax desktop software.
Look for the "Federal" tab (or "Personal" tab if you're using Home & Business Edition).
Navigate to "Other Tax Situations."
Find "Identity Protection PIN" and click on "Start" or "Revisit."
Alternative Navigation (for both Online and Desktop):
Many TurboTax versions also have a "Tools" menu or "Topic Search" option.
Click on "My Account" (Online) or "Tools" (Desktop).
Select "Topic Search."
Type in "IP PIN" (without quotes) and click "Go."
This should take you directly to the relevant screen.
Step 3: Enter Your IP PIN(s)
Now you're at the critical step!
The screen will likely ask you: "Did you or any of your dependents get an IP PIN from the IRS for this year's taxes?" Select "Yes."
You will then be prompted to enter the 6-digit IP PIN(s).
Carefully enter your own IP PIN into the designated field.
If you are filing a joint return and your spouse also has an IP PIN, you must enter their 6-digit IP PIN in the separate field provided for them.
If you are claiming any dependents who have an IP PIN, you will also need to enter their IP PINs in the appropriate sections. TurboTax will guide you to where these should be entered, often within the dependent information section itself, or potentially on specific forms like Form 2441 (Child and Dependent Care Expenses) or Schedule EIC (Earned Income Credit) if applicable.
Double-check the numbers you've entered. A single incorrect digit will lead to your return being rejected.
Step 4: Continue with Your Return and E-File
Once you've accurately entered all required IP PINs:
Click "Continue" or "Done" to exit the IP PIN section.
Proceed with reviewing and completing the rest of your tax return in TurboTax.
When you reach the "File" section of TurboTax, the IP PINs you entered will be automatically transmitted with your federal return.
TurboTax will indicate if your return has been successfully accepted by the IRS. If you receive a rejection, an incorrect IP PIN is a very common reason.
Important Considerations and Tips
Annual Requirement: Remember, your IP PIN changes every year. Always use the most current one issued by the IRS for the tax year you are filing.
Keep it Safe: Treat your IP PIN like a sensitive document. Store it in a secure place where only you can access it. Do not share it with anyone unless absolutely necessary (e.g., your trusted tax professional).
No IP PIN, No E-file (if required): If you are issued an IP PIN, you must use it to e-file. If you cannot retrieve it, you might have to resort to mailing a paper return.
IP PIN vs. AGI: While some older e-filing methods might have relied solely on your prior-year AGI for identity verification, the IP PIN, if issued to you, takes precedence and acts as the primary identity verification.
Check for Updates: Ensure your TurboTax software (desktop version) is updated to the latest version before filing, as updates often include crucial tax law changes and program fixes. TurboTax Online automatically updates.
10 Related FAQ Questions
How to Get an IP PIN from the IRS?
The fastest way is to access your IRS Online Account. Log in, go to your profile, and select the option to "Get an IP PIN." You can also apply via Form 15227 or by calling the IRS Identity Protection Specialized Assistance line.
How to Find My IP PIN If I Lost the IRS Letter?
You can retrieve your current IP PIN immediately through your IRS Online Account. Alternatively, you can call the IRS Identity Protection Specialized Assistance unit, but be prepared for a waiting period to receive it by mail.
How to Tell if I Need an IP PIN?
The IRS will typically mail you a CP01A Notice with your IP PIN if you've been a victim of identity theft, or if you've voluntarily opted into the IP PIN program. If you received this letter, you need an IP PIN.
How to Enter IP PIN for My Spouse or Dependent in TurboTax?
When prompted for your IP PIN in TurboTax, you will see separate fields for yourself, your spouse (if filing jointly), and any dependents who have been issued an IP PIN. Enter each individual's unique 6-digit IP PIN in their respective fields.
How to Fix an E-file Rejection Due to an Incorrect IP PIN?
If your e-filed return is rejected with an error related to an incorrect IP PIN (e.g., R0000-194, IND-180-01), first verify your IP PIN with the IRS using your IRS Online Account. Then, go back into TurboTax, navigate to the IP PIN section, correct the number, and re-file your return.
How to Distinguish Between an IP PIN and a Self-Select PIN in TurboTax?
An IP PIN is a 6-digit number issued by the IRS specifically for identity protection, while a Self-Select PIN (used by TurboTax for e-filing) is a 5-digit number you create as your electronic signature. The IP PIN is mandatory if issued, whereas the Self-Select PIN is an option for electronic signature.
How to Get a New IP PIN for the Next Tax Year?
If you've opted into the continuous IP PIN program, the IRS will automatically issue you a new IP PIN each year. If not, you'll need to retrieve it annually through your IRS Online Account or other designated methods.
How to Get an IP PIN if I Cannot Verify My Identity Online?
If you can't verify your identity online, you may be able to submit Form 15227 (if your income falls within the specified limits) or schedule an in-person appointment at a Taxpayer Assistance Center (TAC).
How to Handle an IP PIN if I'm Filing a Paper Return?
Even when filing a paper return, if you have an IP PIN, you must include it. There will be a designated space on Form 1040 (or other relevant 1040-series forms) in the signature area to write in your 6-digit IP PIN.
How to Know if My IP PIN is Still Valid?
Your IP PIN is only valid for the current tax year's filing. Each tax year, you will receive a new IP PIN from the IRS or need to retrieve it online. An IP PIN from a previous year will not work for the current year's return.