Reject code IND-507 occurs when:
A Dependent SSN in 'DependentDetail' on the return was used as a Dependent SSN on a previously accepted return for the same tax period.
Explanation:
This error occurs when the Social Security Number (SSN) of a dependent listed on the current tax return has already been claimed as a dependent on another return that was submitted and accepted by the IRS for the same tax year.
Possible Causes:
The dependent was mistakenly claimed on another return by the taxpayer or someone else (e.g., another parent, ex-spouse, or relative).
Fraudulent use of the dependent's SSN by someone else.
Clerical or input error, such as entering the wrong SSN.
Solution:
1. Verify the Dependent’s SSN:
Double-check the SSN entered for the dependent on the current return to ensure accuracy.
Compare it with the dependent’s Social Security card.
2. Verify with the Taxpayer:
Ask the taxpayer whether anyone else may be able to claim the child as a dependent.
If someone else has the right to claim the dependent, the taxpayer may need to remove the dependent from the return.
3. File a Paper Return if Necessary, or Remove the Dependent from the Return:
If you are certain the dependent should be claimed on this return and the dependent was claimed in error on another return:
File the return by mail instead of electronically.
Include all necessary documentation to prove dependency eligibility, such as:
Birth certificates.
School or medical records showing residency.
Custody agreements or court orders, if applicable.
4. If You’re the Eligible Claimant:
If you are certain the dependent should be claimed on this return, and the dependent was claimed in error on another return:
File the current return by mail instead of electronically.
Include all necessary documentation to prove dependency eligibility, such as:
Birth certificates.
School or medical records showing residency.
Custody agreements or court orders, if applicable.
5. If Fraud Is Suspected:
If the dependent’s SSN was used without authorization, the taxpayer should:
Contact the IRS Identity Theft Protection Unit at 1-800-908-4490.
File Form 14039 (Identity Theft Affidavit) to report the misuse of the dependent’s SSN.
Steps to Take:
Confirm SSN accuracy.
Reach out to the other filer if applicable to resolve the claim.
If eligibility is disputed, mail in the return with supporting documents.
Report suspected fraud to the IRS using Form 14039.
Additional Notes:
The IRS will contact both parties involved in the duplicate claim and determine who is entitled to claim the dependent.
Resolving this error promptly will help avoid delays in processing and receiving refunds.