That means that another taxpayer has already filed a tax return claiming the EIC credit for that dependent.
If that was the other parent that did NOT physically live with the child more then half the year then that parent is not eligible to claim the EIC and needs to amend to remove it, but that will not allow you to e-file this year,
If you or a dependent that you are entitled to claim has already been claimed by another taxpayer, your e-filed return will reject since the SSN or EIC 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.
If neither taxpayer amends, the IRS will send a second letter asking for each taxpayers proof that they are entitled to the claim.
The IRS will evaluate each taxpayers claim and award the credit to one taxpayer, the other will have to payback any refund received plus interest and possible penalties.
Do not ignore the letters or you will loose.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
