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Reject code IND-507-02 indicates that the Social Security Number (SSN) of the second dependent listed on your tax return has already been claimed on another filed return.
Did this dependent file their own tax return and if so they probably did check the box for being a dependent.
This reject code is because a dependent on this return has filed their own tax return without indicating they would be claimed as a dependent.
If a dependent mistakenly indicated no one can claim them, the IRS has a new procedure that allows your return to be efiled.
You can get an Identity Protection Personal Identification Number (IP PIN) for the dependent, enter this on your return and re-file electronically.
Here are some good references:
Age, name or SSN rejects, errors, correction procedures
Protect Yourself From Tax-Related Identity Theft: Get an Identity Protection PIN
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