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April 14, 2022
Question

Taxes completed and submitted with TTDeluxe - rejected with IND-517-01

  • April 14, 2022
  • 1 reply
  • 0 views

I've submitted my taxes twice now and get Fed tax rejected each time with IND-517-01 code. Which I assume means my 01 (first dependent listed) son is getting flagged as a dependent on another return.  He has completed an affidavit claiming his identity has been compromised and he is currently unable to file his taxes. Now I simply want to file and pay with him listed as a dependent anyway, since at the end of his dealings with the IRS it will become clear he *IS* my dependent and is still living with me in my house as a dependent.  

Should I just file by mail?  If so, I wanted to pay my bill with a credit card so I can spread the payment over 2 or 3 months but I have only ever mailed in taxes with a check for payment to the IRS.

 

Hope someone can help me out here.

 

Cheers,

-Scott

    1 reply

    macuser_22
    Employee
    April 14, 2022

    That means that a dependent on your tax return has already been claimed by another taxpayer of the depended filed their own tax return and did not check the box that they were a dependent in which case they must amend but that will not allow you to e-file this year.

     

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

    If neither taxpayer amends, the IRS will send a second letter asking for each taxpayers proof that they are entitled to the claim.

    The IRS will evaluate each taxpayers claim and award the credit to one taxpayer, the other will have to payback any refund received plus interest and possible penalties.

    Do not ignore the letters or you will loose.

    **Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**