There’s not really any correction you can make that would allow you to e-file claiming your daughter.
Once a return has been received with her Social Security number, another return can’t be e-filed with that same number.
You would need to paper-file a return claiming your daughter.
Your daughter would also need to amend, indicating that she can be claimed as a dependent on someone else’s return.
The IRS doesn't allow you to claim a dependent on your return what that person has filed a tax return of their own, and didn’t indicate that they could be claimed as a dependent on another person's return. Please see the TurboTax Help article TurboTax Online instructions for e-file reject IND-517-01 for guidance in addressing this issue.
I had the same issue this year. My daughter than re-filed electronically and selected the proper box to be claimed as a dependent. Her refund was reduced due to that change, so I assume that means it was properly adjusted. I then waited 2 hours and re-filed my return now that the cause of the error has been fixed. However, the next day I received the same rejection error. What am I missing to resolve this. To add to the complexity, I use the CD version of TT to file, and am now on a business trip without access to that computer to be able to make changes/refile. I see that I have 5 days to resolve (so by April 23rd this year) but that is cutting it close, as I return to my home and will have access to the computer with TT installed on it on the computer on 4/22. Should I just file for an extension for now? How do I find when my daughters' changes have been properly registered by the IRS and I can re-file?
You can't efile a return once your daughter has made this error. Even though she has fixed it. You will have to submit your return by mail.