Our daughter filed her return, she chose the “someone else can claim me as a dependent.” However, we are getting the rejection code IND 517-01. We looked and she had.

There are two questions about dependency.  The 'someone else can claim me as a dependent' and 'they are claiming me as a dependent'  should both be Yes.

If not, TurboTax may revert to filing as a Non-Dependent.

Check her Standard Deduction amount.  If you are being claimed as a dependent, your Standard Deduction is lower.  For example, in 2023, the Standard Deduction for dependents is whichever is greater:

1. $1,250
2. Earned income plus $400

For a non-dependent, the Standard Deduction is $13,850.

If this applies, you will need to mail your return, unfortunately.

She will need to Amend her return.