I have been using TurboTax to e-file my tax for several years just fine. It was the first time to have the tax return rejected with this code.
My child didn't submit any tax return and I am surprised to see the rejection. Could it be a glitch of the system or could it be a tax fraud? Should I contact IRS directly or should I just submit the tax return by mail?
Rejection Code IND-517-01 indicates that the first Dependent listed on your Form 1040 has already filed a Tax Return and claimed themself.
I recommend that you double check the return to see if your Dependent made a mistake on their return and didn't indicate that they were being claimed as a Dependent. If they did, they will need to Amend their Tax Return. If using TurboTax, as you walk through the TurboTax interview process you will need to answer "YES" to the question "Someone else can claim me as a Dependent" and "YES" to "and this person will claim me on their 2018 Tax Return". You can click here for instructions on Amending your tax return: How to Change a Tax Return You Already Filed.
If after checking your Dependent's return they did correctly indicate that they are claimed as a Dependent, then your only option is to mail in your Tax Return.
If your dependent did not file a return then your ONLY option is to print and mail in the return.
you could call the IRS but there may be nothing they can do except to tell you to file by mail and include form 14039. they will not tell you the name of the other party that claimed your child even if it is your child. are you sure your child didn't submit a return, because if you are sure then file form 14039 with your return. sometimes it's not identity theft just carelessness by another individual who mistypes a SSN.