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Level 1
posted Mar 31, 2018 7:37:40 AM

Tax Return Rejected: Code IND-517

My return has been rejected two times with code IND-517. The definition of that code is, "A Dependent SSN in the return must not be the same as the Primary or Spouse SSN on another return where the Primary Taxpayer or Spouse was claimed as an exemption."

 

This return includes myself, my wife, and two teenage sons.  My sons do work. However, none of my dependents have already filed a tax return and claimed themselves as a dependent. What could have caused this error?

 

I'm concerned that someone else may have filed a tax return and fraudulently used one of these SSNs. Unfortunately, the email contains no other information. Is there any way to find out which SSN has already been used? If I file a paper return now, per the instructions, is their any risk of that return being rejected?

 

Thanks!

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1 Best answer
Alumni
Mar 31, 2018 8:03:28 AM

It appears that another tax return has been filed using your dependents SSN, whether by mistake (IRS cross matches the first 4 letters of a last name with the SSN, if someone is one digit off and happens to have a similar last name, their return could be accepted even with the incorrect SSN on it and they would never even realize they made a mistake), or as an attempt at identity theft.  

 

Your action is the same in either case, you must file your return by paper and let IRS sort it out.  Be sure when filing by paper, to sign/date the return and attach any W2s or 1099 forms that show federal withholding to the front of the federal return.   Your state may have different requirements for filing on paper, the instructions sheet that will be included when you print, should explain what needs to be done.

5 Replies
Alumni
Mar 31, 2018 8:03:28 AM

It appears that another tax return has been filed using your dependents SSN, whether by mistake (IRS cross matches the first 4 letters of a last name with the SSN, if someone is one digit off and happens to have a similar last name, their return could be accepted even with the incorrect SSN on it and they would never even realize they made a mistake), or as an attempt at identity theft.  

 

Your action is the same in either case, you must file your return by paper and let IRS sort it out.  Be sure when filing by paper, to sign/date the return and attach any W2s or 1099 forms that show federal withholding to the front of the federal return.   Your state may have different requirements for filing on paper, the instructions sheet that will be included when you print, should explain what needs to be done.

Level 1
Mar 31, 2018 8:06:39 AM

Thanks for the reply. I live in Florida. So, at least I don't have a state return to worry about.

New Member
Feb 16, 2019 9:44:59 PM

This has happened to me two years in a row.  Is there any way to prevent this from happening?

Returning Member
Mar 12, 2020 1:31:24 AM

I had two employers last year and I filed married is that why.

Expert Alumni
Mar 12, 2020 8:15:58 AM

No, the rejection code IND-517 is used when a dependent's social security number has been claimed on another return as a taxpayer or spouse.  Often this happens when a dependent files their own return and does not indicate that someone else can claim them as a dependent.