Reject code ind 517

[UnhappyRejectedReturnUser]

Not true.  It did not work for me.  

Re: Everyone needs to STOP posting on this old thread and sta...

What are the rules for when you should start a new post?  and when you should reply to an old one?  And why should the post you reply to make any difference to people who can read?  Your status is "super"... not understanding your reply.  It was my understanding this was a helpful community forum.  

[UnhappyRejectedReturnUser]

apparently Turbo Tax gives you credit just for answering a question... not for the ACCURACY of the information provided in the reply.   

[UnhappyRejectedReturnUser]

Maybe turbo tax should assign different reject codes to different errors rather than recycling previously used reject codes to new errors.  I spoke to turbo tax live person today (6/28/19) who explained this error code meant my dependent child did not check the box for "someone else can claim me as a dependent"... which is also not true... so this sucks... I can't rely on the advise of turbo tax employees  or their "super" level experts. Guess I will have to roll the dice on the IRS receiving my printed copy despite the fact that I paid to e-file my return (which has been rejected 5xs now) and/or the better business bureau (who fortunately still provides results)  so I can get my refund.  Signed..Previously happy 10 year turbo tax user.

[n6oncenter]

Add me to the list... so what next?  They BOTH used Turbo Tax and I checked their returns and they both checked the box stating they can be claimed as dependents on another's return (mine)...

What do I do?

[Desi1ace]

What was the solution to problem?

[JeanneLO]

The rejection code IND-517 from the IRS happens when your dependent's social security number has been claimed on another return. Often this happens when a dependent files their own return and does not indicate that someone else can claim them as a dependent.

In order to fix this, you would have to print, sign & mail your tax return.  The person who erroneously claimed the exemption should amend their return. 

[LoriC]

Your reply isn't fixing the problem. My child did not claim himself and all boxes are checked correctly, yet it is still rejected. When I attempt to amend his, TT tells me there are no changes and do I want to amend anyway. Then the 16 week wait time means I need an extension to file mine. Is there any solution that will actually fix this problem?

[DMarkM1]

You do not need to wait.  Print your return and mail it in.  Since his return is correct this will not be an issue.  

[LoriC]

Thanks to some outside assistance, I have found that even if your child checks the "someone can claim me" box, but they make over the annual income allowance for a dependent($4200 I think), TurboTax will remove the check mark on their return, since they cannot be claimed by their parents(and probably can't claim themselves if they are getting assistance from parents/scholarships while attending college). Then when the parents try to claim them, it is rejected. You will need to remove that child as a dependent and resubmit your return. Hope this helps!

[LeonardS]

Rejection code IND-517 is generated when a dependent's Social Security Number has been claimed on another return as a taxpayer or spouse. This usually occurs when a dependent files their own return and does not indicate that someone else can claim them as a dependent.

[tfollmer]

Leonard...Most on this thread understand the reason why rejection code 517 is generated.  But many, like me now,  have this issue:  efiled my daughter's taxes, accepted and got full refund of all paid in, made $2900 at summer job, BOXES ARE CHECKED "I can be claimed as a Dependent on Someone Else's Tax Return" and "I Will be Claimed as a Dependent by Someone Else".  I verified by looking at my daughter's printed tax return, as filed, that no personal exemption was taken for her on either Federal or State (AR).  So my daughter's return is all correct.

But yet when I claim her as a Dependent, which she is, I receive the rejection code 517.  This is either a TT issue (most likely) or an IRS issue.  In any event, my daughters and my taxes were seemingly filed correctly but mine was rejected for a reason that is incorrect.  

This is the same thing many on this thread are saying.  Can you help or shed any light on what the problem is? TIA.

[macuser_22]

@tfollmer 

Is This box checked on the 1040 form itself?

If it is then that reject means that someone else has used that same SSN (or there is an error in the IRS database).

Your only recourse is to file by mail and claim what you are entitled to claim.   The IRS will sort it out but that can take a year or more.

If a dependent that you are entitled to claim has already been claimed by another taxpayer, your e-filed return will reject since the child's SSN 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 the child.

If neither taxpayer amends, the IRS will send a second letter asking for each taxpayers proof that they are entitled to claim the dependent, such as proof that the child physically lived with them more than half the year. School records, child care records, household receipts, medical bills, etc., that show that the child lives with you should be retained.

The IRS will evaluate each taxpayers claim and award the dependent to one taxpayer, the other will have to payback any refund received plus interest and possible penalties. The parent that had physical custody usually always wins.

Do not ignore the letters or you will loose.

[tfollmer]

Yes, that box is checked on the printed and TT online version of her 1040.  I talked to TT and verified I must file my taxes via paper, not e-file.  I have taken the additional step of requesting a Tax Return Transcript for my daughter's 2019 return.  I am waiting to see if zero exemptions were in fact filed by TT electronically (I assume they e-filed what their paper return for my daughter indicates but not sure until I verify).  I will file my taxes via paper after I verify TT filed it properly via e-file.  If they did, of course, it is an IRS glitch.  I don't think anyone else claimed her as a dependent as her total refund of all paid in was processed and paid by both Fed & State.  If they did, we are a victim of Identity Theft.  All stuff I didn't need to deal with as I'm trying to dodge the virus, like everybody.  Thank you for your help.

[tfollmer]

BREAKTHROUGH: Got IRS transcript for daughter, shows she claimed 1 exemption.  Printed 1040 for her (as filed with IRS) shows she claimed 0 exemptions.  So TT did not transmit the same electronically as they are showing on the paper version (my bet) or the IRS has a bug in their system (unlikely).  In any event, stuck filing amended return for daughter, waiting for acceptance before filing an amended return for parents, all holding up a $4000 refund for months (of course we have no use for this money since we're all working through the pandemic - LOL).  Kicker is:  whether my daughter claims herself as a dependent or not, makes no difference in the tax she pays, it is still $0.  I'm hosed and did everything right.

[coupon_queen1986]

My stepson filed himself and didn’t tell us. We usually claim him bc he just turned 18. Anyways can you tell me what you ended up having to do?