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IRS rejected - IND-517-01

The IRS rejected my return a couple of times, code IND-517-01. My daughter accidentally indicated on her return that she can't be claimed but she can. She has amended her return through Turbotax via e-file but I'm still getting this error - presumably because the IRS has not yet processed her return.  I owe money this year on my return. Recommendations on the community boards are for me to file via mail.  That of course will take forever.  Is that in fact the best course? Or should I change my return to NOT claim my daughter, e-file and pay my taxes, then file an amendment through e-file to claim my daughter and later get a refund of my overpayment due to now receiving the child tax credit? I've never filed by mail so I'm concerned that might flag an audit of some sort.

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3 Replies

IRS rejected - IND-517-01

How old is your daughter? The Child Tax Credit isn’t available to anyone over age 16. How much money did she earn ? Is she a student?

a child over age 16 will get you a $500 credit for other dependents., no child tax credit.

IRS rejected - IND-517-01

She is 20 but in school and doesn't pay more than half of her expenses. Sorry, I meant the $500 other dependents credit not the child tax credit. 

JamesG1
Expert Alumni

IRS rejected - IND-517-01

Your tax return has been rejected because you claimed your  daughter as a dependent.  Unfortunately, your daughter had already filed her tax return and claimed herself reporting that she cannot be claimed as a dependent.

 

It will take a number of weeks before her amended tax return is processed where she claims that she can be claimed as a dependent.

 

Filing by US mail does not increase your chances for audit by the IRS.

 

You have these options.  You may:

 

  • Electronically file you tax return by April 18 not claiming your daughter as a dependent.  You would pay the balance due by April 18.  You would be able to amend your tax return at a later time and claim your daughter as a dependent and claim the $500 credit for other dependents.
  • File by your tax return by April 18 using US mail.  You would claim your daughter as a dependent and claim the $500 credit for other dependents.  The processing time will be longer than electronically filing.  Your balance due would be reduced and your payment by April 18 would be reduced.
  • File an extension by April 18 not claiming your daughter as a dependent.  Your balance due would be due and payable by April 18.
  • File an extension by April 18 claiming your daughter as a dependent.  Your balance due would be reduced and your payment by April 18 would be reduced.

See this TurboTax Help.

 

@Snoop123 

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