Reject code IND-517-01 occurs when:
A Dependent SSN in the return must not be the same as the Primary or Spouse SSN on another return where 'PrimaryClaimAsDependentInd' or 'SpouseClaimAsDependentInd' is not checked.
Explanation:
This error occurs when a Dependent’s SSN listed on the current tax return is already being used as the Primary SSN or Spouse SSN on another return. Essentially, someone who is claimed as a dependent cannot also be listed as a Primary Taxpayer or Spouse on a different return.
Possible Causes:
Incorrect Dependent Claim:
The person listed as a dependent on the current return filed their own tax return or was listed as a Spouse on another return.
SSN Entry Error:
A typo in the Dependent’s SSN causes it to match the SSN of a Primary or Spouse on another return.
Filing Status Discrepancy:
A taxpayer listed as a dependent on one return may have mistakenly filed their own return as a Primary Taxpayer.
Fraudulent Filing:
A dependent’s SSN may have been improperly used by another filer.
Solutions:
Step 1: Verify the Dependent’s SSN on the Error
Check that the SSN entered for the dependent matches their official Social Security records.
Look for any typos or mismatches that may have caused the error.
Step 2: Confirm the SSN Has No Errors
Ensure the SSN is correctly entered in the tax software.
Double-check the dependent’s Social Security card for accuracy.
Step 3: Communicate the Error to the Client
Inform the client about the rejection and explain that the SSN has already been used on another return.
If the dependent is a student or another family member, verify whether they filed their own return or were claimed on another tax return.
Step 4: Instruct the Client to Contact the IRS if Necessary
If the dependent’s SSN was used by mistake, they may need to amend their return.
If fraud or identity theft is suspected, advise the client to contact the IRS Identity Theft Protection Unit at 1-800-908-4490.
The client may need to file Form 14039 (Identity Theft Affidavit) if someone fraudulently claimed the dependent.
Additional Notes:
Dependents, especially students, sometimes mistakenly file their own tax returns.
Always ensure dependents understand whether they are eligible to file independently or if they are being claimed by someone else.
Resolving the issue promptly ensures the return is processed without unnecessary delays.