2019 Federal Return Rejected with code IND-517-01

[gfriendct]

I had to efile again today because of the form 8801 issue and my return was rejected again for a different reason this time:

"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."

All of the posts pertaining to this particular error are for tax year 2018 or earlier, so I am posting this because I have seen nothing for tax year 2019.

I legitimately claimed one dependent (my daughter) who has filed already, and I have confirmation that she checked the box stating that someone else can claim her as a dependent.

So what is the answer from Turbo Tax?  Either remove the dependent (and the associated credits!) or print and file by snail mail.

Really?  Is that the best you can do?  I have been using Turbo Tax since 1999 and NEVER had any issues until this recent form 8801 bug and now this dependent nonsense.

Does anybody have a solution to correct this error, whether with Turbo Tax or with IRS (whichever side is guilty of incompetence) other than the unacceptable options noted above.

Thanks in advance.

Version:  Turbo Tax Premier 2019 CD running on Windows 10, latest update applied March 8, 2020.

[JohnW222]

Unfortunately, if you've verified your dependent's Social Security Number and continue to have your return rejected, you'll have no choice but to paper-file your return if you want to retain your dependent on your return.

The IRS's database indicates that your dependent's SSN has already been used on a 2019 return, as the primary taxpayer or spouse on that return.  Once that's occurred, the IRS won't accept another e-filed return with that SSN, giving rise to the need for a mailed return.

[gfriendct]

JohnW222,

Thank you for your response; unfortunately, it is not the response I wanted to hear.  So if I had efiled my return with my daughter as a dependent before she filed her own, would her return have been rejected?

I would think that an outfit as mature as Intuit could have worked this type of situation out with the IRS; they could at least advise people in advance that this can happen.  Dependent kids have get part time jobs and may file their tax returns before their parents are able to do so, typically because the parents are waiting on other forms to arrive for more complex situations (waiting on a 1099-DIV was my delay).

Once again, I appreciate the fast response, but it really does not help me.  My state tax return was rejected because my federal tax return was rejected due to the form 8801 bug; had that not happened, my federal return would have been filed before my daughter's tax return was filed.  So am going through all of this nonsense for a problem which neither side (Turbo Tax or the IRS) is owning.

Now that I have to file my federal tax return via snail mail, I have to hold my state tax return in abeyance and wait quite some time until the federal tax return is accepted; in the meantime, the meter on the penalty on my state taxes will continue to run.  Who is going to pay for that?  (rhetorical question).

Turbo Tax software has really disappointed me this year; say goodbye to a former loyal user.

[CatinaT1]

This is something that happens quite frequently, dependents filing and not indicating they are a dependent.  

If you are paper filing your federal, you can paper file your state at the same time.  You do not need for the federal to be accepted prior to mailing your state return.

Your dependent will need to file an amended return indicating she is being claimed as a dependent.  

[gfriendct]

CatinaT1.

Thank you for your input.  Actually, just the opposite is true.  My daughter did state on her return that she could be claimed as a dependent by someone else; as such, she will not have to file an amended return.

The other interesting bit of news is that whatever online solution my daughter used to submit her return would not allow her to file electronically and forced her to file via snail mail.  Now this is an interesting twist, as it is highly unlikely that the IRS received her return and processed it before I attempted to submit mine electronically (they were about 5 days apart).  I am starting to suspect that someone may have fraudulently (or less likely, accidentally) used my daughter's social security number; as such, I have taken actions to investigate.

I appreciate the good feedback I have received from members of this forum, but my faith in this Turbo Tax software and electronic filing process has not been restored.  Just as a simple example, the CD version of the software has a link for online help, which directs you to a web page that is not the correct page; the incorrect page has a link to this forum.  You would think that they could replace that link in the software with the correct link in any one of the numerous updates that they throw at you; they could at the very least automatically redirect users who go to the incorrect web page over to the correct one.  Just more evidence of the product's degradation in quality over the years.

[joel91]

My return was rejected with code IND-517-01 but my son never filed a tax return. I don't understand

[Mkorom]

I had the same issue and double checked.  I think it is a problem with the IRS and not with Turbo Tax otherwise the software would not let you save or proceed.  This is the first year I dealt with this after 5 prior years of claiming a dependent but I have always filed first.  I guess I will send in paper and take my chances.

[nag1]

Just encountered this error (bug?) as well.

I prepared and filed my daughter's 1040 early, so she could get her refund.
I filed much later (just now), having owed the IRS money.

I am looking right now at her return, and the

"Someone can claim: You as a dependent"

is clearly X-marked.

Yet my own e-filing just got rejected with an (erroneous) IND-517-01.

What gives?!

[STEPHENB64]

I too have just encountered this error. Tried to fix it by taking off my first daughter (who is listed as a nondependent, carried over from years of using Turbo Tax). Refiled e-file and again rejected. So when I get home in 2 days, will have to print and send in tax due. Kinda sucks. My other 2 dependents are fine--the box is checked properly on their federal filing.

So, what I am wondering is this--did someone else steal one of our SSNs to file a federal form before us, either e-file or paper file? And that is what is triggering the system error. With all of the stolen data over the years, I have no doubt our information like millions others have been compromised. Am I on target?

[DawnC]

The 01 at the end of the reject code signifies that the error is on the first dependent listed on your tax return.  Did that child possible file for a stimulus payment?  That would cause the error, but it is possible that someone else has claimed your child.  It is impossible to tell, but if you get that reject code, you either have to remove the dependent or file by mail.

Depending on your specific financial situation, you have choices.  You can include all dependents and mail your return or you can remove the problem dependent, e-file and then file an amendment later to add the dependent back.   Eventually, the IRS will get it worked out.   The other tax return that claimed the child will get the same letter you do about the child already being claimed and someone will have to amend.   Or if it is identity theft, they will issue your dependent an IP PIN that you will need to use the future.  

You will get the credit for your dependent, but it may take awhile.  @STEPHENB64    @nag1

[STEPHENB64]

Interesting and thank you. Like mentioned, removed the number 1 completely, refiled and still got same error. The new #1 did not file for stimulus check. So still puzzled.

Will be doing extension and working to sort out.

Still wonder about all the data breaches...

[panyazucar100]

I verified the information and you were right. My daughter did not check the box on her tax return stating that "someone can claim you as a dependent." So...What do I do now? Will she need to amend her 1040  tax return which she completed it only to receive the Economic Impact Payment as she is a full time college student with no income? I cannot remove her from my tax return as we reap some tax benefits listing as my dependent. In addition,  it was too late for me to print and mail the tax return as I could not find an open post office  and I ended up filing for an extension. I would appreciate any suggestions on how to proceed.   Thank you ! 

[DawnC]

You can go ahead and mail the return with her on it and get your refund.   If you owe tax, use the IRS website to make a payment.   She will need to amend her return but there is no rush to do that.  The payment she received was for a 2020 tax credit, so if she is still a dependent next year, she may have to pay the stimulus payment back.   @panyazucar100

[panyazucar100]

Hello. We are trying to “fix” her  2019 tax return that my daughter had filed to get ONLY  her stimulus relief payment. Since she is being claimed by us, she would not qualify for any relief payment and this is just making our 2019 tax return being rejected by both the IRS and the state. Can she include a simple note asking the IRS “to delete” her tax return since it was filed by error?  The 1040X seems complicated to me if doing by hand.  She is a full-time college student with has zero income and financially fully dependent on us. Thank you for your help. 

[joel91]

Just print and file by mail if you use turbo tax. That's what happened to me. My son is a full-time student and dependent on us. He applied for that stimulus package. The IRS ACCEPTED MY RETURN. I hope this helps. E-file will never work once the IRS rejected it.