e-file rejection

[CLAUDIATRACY]

Client's return was rejected because a dependent social security was used on an earlier filed return. How should I handle this? It makes a $3000 difference in the refund! I have verified the SSN with the card and it is correct on this return.

[sjrcpa]

Ask the parents to find out if the dependent kid filed their ow return and claimed an exemption for themself.

[Taxprohere]

If so, you'll also have to paper file.  And wish your clients good luck waiting for that refund!!!

(other possibility, if your client is a single parent and the other parent claimed the child.)

[rcooley25]

Yourclient will have a beef with someone. If the tax return has been rejected because the social security number appears  on another return that means someone (former spouse ect) has claimed that person on another return. Since you are highly unlikely to get that other person to change their return you and your client might be faced with not claiming that dependent and loosing the $3000.00

[rcooley25]

You do not want to paper file.

[CLAUDIATRACY]

dependent child is only 11

[Taxprohere · Accepted solution]

"and your client might be faced with not claiming that dependent and loosing the $3000.00"

not at all.  If your client has the superior claim to the child, you do want to paper file.  IRS will ask for evidence, ie documents establishing relationship and primary residence (like school records).  Explain this process to your client and that client will have to wait a while for this to be resolved.  No reason to give up a proper claim to $3K!

[rcooley25]

Tell that to the client when they are still waiting for their tax return a year and half later. Dont beleve me then ask the 6 million who paper filed their tax returns for 2020 and they still have not been processed yet.

[ljr]

hey it's not 6 million waiting IRS updated their estimate to 24 million and do we believe number?

[ljr]

If the child is only 11 then you might have an identity theft issue. Parents can't efile with child on the return so it would have to go paper with form 14039 identity theft affidavit. but I would confirm parents file joint not MFS and the spouse who's year it isn't didn't file knowing all the extra money for kids. Did grandma claim kid. . . . . so many scenarios. 

[rcooley25]

That worst yet