Federal Tax Return Rejected-IND-517-01

[rlcavil]

After completing and e-filing our federal and state taxes, I received an email for both saying they were rejected for the following reason:  

IND-517-01 - A Dependent SSN in the return must not be the same as the Primary or Spouse SSN on another return where 'PrimaryClaimAsDependentInd' or 'SpouseClaimAsDependentInd' is not checked. 

This is the first year that we have a dependent who is going to college.  For the college dependent's 1040 tax return, she's listed as s single filing status and she also checked that someone can claim you as a dependent.  The college dependent did file her return before her parents.  On the parent's 1040 tax return, the college student is listed as a dependent, and the credit for other dependents is checked.

Did we fill out anything wrong?  I saw some other similar posts where people just had to file manually instead of electronically to deal with this issue. 

[macuser_22]

That usually happens when  the child has filed their own tax return and failed to check the box that says they can be claimed as a dependent on another taxpayers tax return (such as a parent.

The Child needs to amend and check that box, and the parent must mail file this year since amended returns take 4 months to process and will not reset the IRS SSN lockout for another return with the same SSN this year.

[CMinPhx]

 My e-file has been rejected 2x with the same error: IND-517-01. I double-checked and my children's returns both have 'Someone can claim you as a dependent' checked off. Why won't efile work? The names are spelled correctly, social security numbers are correct... I have no idea what else to check. 

The only difference I can find is that my son was not a dependent last year but is this year. 

[macuser_22]

If a dependent that you are entitled to claim has already been claimed by another taxpayer, your e-filed return will reject since the child's SSN has already been used (either intentionally or in error such as a mistyped SSN).

Your only recourse is to file a correct tax return, claiming what you are entitled to claim, then print and mail the return.

The IRS will process both returns and pay any refunds. Shortly (within a year) the IRS will mail letters to both taxpayers asking if their tax return was filed in error and suggesting that they amend if they improperly claimed the child.

If neither taxpayer amends, the IRS will send a second letter asking for each taxpayers proof that they are entitled to claim the dependent, such as proof that the child physically lived with them more than half the year. School records, child care records, household receipts, medical bills, etc., that show that the child lives with you should be retained.

The IRS will evaluate each taxpayers claim and award the dependent to one taxpayer, the other will have to payback any refund received plus interest and possible penalties. The parent that had physical custody usually always wins.

Do not ignore the letters or you will loose.