When all of you live together as a family, the children should only be entered on ONE parent's tax return--not both. You need to remove the children from MY INFO and file Single with no mention of them on your return, since their SSN's have already been used on the father's tax return.
The return is being rejected because the child can only be listed on one person's return. Benefits for the child cannot be split between two returns. If you are unmarried, you can choose who gets to claim the child and list the child on that individuals return only.
As xmasbaby0, stated, you will need to remove the child from your return entirely before your return will be accepted.
To do this in TurboTax, follow these steps: