Claiming dependents are definite tax return perks as they can provide huge tax breaks! So it would be quite a surprise if your tax return is rejected simply due to claiming your precious kiddo - especially if you’re the one entitled to claim them.
Even if you did everything right, it could happen to you. If your tax return is rejected due to someone else using your dependent’s Social Security number, it might be as simple as a typo in a Social Security number (either by you or the other person). Or maybe the other parent thought it was their year to claim your child and they filed first. Sometimes your dependent files their own tax return as an independent - and, of course, they didn’t run it by you first.
You typically learn of the e-file rejection via an email with a reject code of IND-507-01. The 01 at the end means it’s the first dependent listed on your tax return. If you had a second dependent whose Social Security number was the reason for the reject, the code would be IND-507-02. You get the idea…
The good news is that the IRS has a potential solution if your return is rejected due to duplicate (already claimed) dependents on your tax return. And it can accelerate the processing of your tax refund as well. In the past, you would have to paper file your tax return and it could take many weeks or months to get it straightened out. Now, the IRS will accept an e-filed tax return even if your dependent’s Social Security number was on a previously filed tax return. What a time-saver!
The one caveat, in order to avoid the e-file rejection, you have to include a valid IP Pin (Identity Protection Pin) for the primary taxpayer (likely you) on the tax return that was filed second. It’s simple to get one and you can do it online!
Whatever the reason for your reject, you’ll want to learn how to fix the e-file Reject IND-507-01 in the TurboTax software so your tax filing will continue without a hitch!
BONUS: If you’re unsure as to who can claim a dependent, check out the Dependents: Children, Relatives & Others guidepost so you can maximize your dependent deductions.