A taxpayer's dependent is a newborn and was not yet issued an SSN. How does this impact their return?

Per the Form 1040 Instructions, if the taxpayer does not include a valid Social Security Number, the IRS may reduce or disallow certain tax benefits based on the dependent.

Deceased Dependent

If there is no SSN for a dependent due to their death, the child can still be included on the return if the necessary information is included per IRS guidelines.

Starting in Drake Tax 2023:

1. Complete the demographic information for the deceased dependent on screen 2 including:

   • First Name, MI, Last Name (if different), Suffix

   • SSN - leave the SSN field blank.

   • Months in home

   • Date of Birth

   • Date of Death

2. Check the box Dependent born and died in 2022, no SSN received.

3. Make a selection in the Deceased Child Document drop list to indicate which supporting document that will be attached as a PDF (clears EF Message 5598). Note that the document must show that the child was born alive.

   • A - Birth Certificate

   • B - Death Certificate

   • C - Hospital Medical Records

4. In View/Print mode, attach the document as a PDF (clears EF Message 1267).

   • The file descriptions and file name(s) are case sensitive and must be named exactly as shown on the EF PDF Attachments window.

In Drake Tax 2022 and prior:

1. Enter DIED in the SSN field on screen 2 and press Ctrl + F to force the non-numerical entry.

2. Enter the date of death for the dependent on screen 2.

3. Make a selection in the Deceased Child Document drop list to indicate which supporting document that will be attached as a PDF (clears EF Message 5598). Note that the document must show that the child was born alive.

   • A - Birth Certificate

   • B - Death Certificate

   • C - Hospital Medical Records

4. In view mode, attach the document as a PDF (clears EF Message 1267).

   • The file descriptions and file name(s) are case sensitive and must be named exactly as shown on the EF PDF Attachments window.

Newly Issued SSN

An e-filed return with a newly-issued dependent's SSN may be rejected (R0000-504-01) because the SSN does not immediately appear in the IRS database. The Social Security Administration must forward it to IRS and the IRS must update its master file. That process often is not completed prior to the filing deadline. If the return is rejected with code R0000-504-01, the return will have to be paper-filed.

Amish and Mennonite

If a dependent has a religious exemption from the requirement of having a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), enter AMISH, MENNONITE, or FORM 4029 in the SSN field on screen 2 and press Ctrl + F to force the non-numerical entry. A return with this type of ID number entered cannot be e-filed due to EF Message 0068.