Applying for unemployment has no bearing on how you file your tax return, so that would not be the reason your return was rejected. Someone has already claimed the child as a dependent on their return. Is there someone else who would potentially claim the child? If you are claiming the child the only way for you to file with the child it to paper file. The IRS will then mail a letter to both people who claimed the child asking for proof that the child is their eligible dependent. The person who is ineligible for the dependency of the child will receive no tax benefit.
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