John Krasinski Thinks His Kids 'Thought I Was an Accountant' Before He Created “IF ”(Exclusive)

John Krasinski has been crowned PEOPLE’s 2024 Sexiest Man Alive

John Krasinksi has always strived to maintain a sense of normalcy when it comes to his two kids, daughters Hazel, 10, and Violet, 8, whom he shares with his wife of 14 years, actress Emily Blunt, 41, and any interactions with fans.

One of his favorite encounters happened a few years ago when Krasinski was walking his older daughter to school. “This guy came up to me and he went, ‘John from The Office?’ And I went, ‘Yeah.’ And he goes, ‘Oh my God, it's so good to see you!’ And he walked away,” the actor recalls. “And then Hazel said, ‘So you work with that guy?’ And I said, ‘No.’ And she said, ‘Why are you lying to me? He said he knows you from the office.’”

Krasinski admits it was a challenge trying to explain the truth. “I thought, ‘Wow, what an unbelievable head trip that is,'" he says. "I'm not sure they even knew what it is I do, because they haven't seen Jack Ryan or A Quiet Place or The Office. I think they thought I was an accountant. It’s a pretty wild thing for them to process, and I think they're doing a good job with it now.”

They also inspired their dad to create this year’s movie IF after their imagination seemed to falter during the pandemic. His daughters “were the most unbelievably inventive, inspirationally imaginative kids,” Krasinski says. “And then when COVID hit, I saw their lights start to dim, and I just thought, ‘That can't happen.’”

Related: John Krasinski Is PEOPLE's 2024 Sexiest Man Alive: 'I Think It's Going to Make Me Do More Household Chores,' He Jokes

The actor started talking to his girls “about this idea that I had to bring imaginary friends to life as these coping mechanisms, these people who help us through life and they loved the idea,” he adds. “And this was the first time that I brought them in on my creative process. And then I just thought, ‘I'm going to pitch them the whole movie.’”

He then showed his kids his own initial drawings of the characters “which were horrendous,” before offering more professional sketches. “I based a bunch of the IFs on their imaginary friends, so it was just a full experience where they really got to see what I do and really understand what it is that I do,” Krasinski says.

The best part for the actor? “It's changed everything in the way we watch films now. They love asking questions,” he says. “Like, weirdly, ‘What lens is being used? Is that a stunt person or is that the actor? What of this is effects and what's not?’ And I just love that there's this newfound curiosity, which I could not be more excited and more proud of.”

And while the actor has yet to expose his kids to all of his work, they were allowed to watch one particular episode of The Office: “When I was pretending to be Dwight,” says Krasinski of his costar Rainn Wilson’s character. “That was one of my favorite moments in the history of The Office.”

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For the record, he also has a favorite prank his character, Jim, pulled on Dwight. “When I took the hand set of his phone and filled it with nickels and slowly over time, it got heavier and heavier. And then I took them out, and he hit himself in the face,” Krasinski recalls with a smile. “There was something so maniacal about that prank that I thought that was one of the smartest, funniest things anyone's ever written. And I was just proud to be a part of it.”

For more of Krasinski's exclusive interview and photos, pick up this week's issue of PEOPLE on newsstands Friday