My federal tax return was rejected for this reason. I am claimed as a dependent on my parents' returns, which is what an IND-516 return is, apparently. The description of the error reads: This return was rejected by the IRS, because an exemption has been claimed for the taxpayer, but the taxpayer's SSN has already been entered as a dependent on another return. The taxpayer's SSN cannot be used to claim an exemption on two separate tax returns. Verify that the taxpayer's SSN has been entered correctly. If the Taxpayer's information is correct and you want to file electronically, the personal exemption cannot be claimed for the taxpayer on this return. I don't know what exemption this is referring to. Any and all help is appreciated.
