Hi
I submitted my 2019 e-file yesterday and it was rejected because of FD-32-IND-517-01 "A Dependent Listed on your tax return has claimed themselves on their own tax return".
Some background:
My wife and I did not receive any stimulus payment for ourselves or for dependents, likely due to exceeding the income limits in 2018.
My daughter (born Jan 1995) is a medical student away at college. She has approx $100 in Interest income for 2019 and no other income. She did not file a tax return for 2019.
I used the tool at
and it confirms that I can take my daughter as dependent for 2019.
We expect her to be NOT a dependent for 2020. She plans to convert her traditional IRA to Roth in 2020 before she starts working in
2021 - this conversion income will put her above the 4200 limit for the Qualifying-Relative income test.
However, she did file the online application for the COVID 1200 check on her own behalf. I assume this application is triggering my e-file reject. Because she is not expecting to be a dependent for 2020, she assumed that she can apply online for the COVID 1200 stimulus payment. It appears that she may not actually be entitled to a COVID payment in 2019 (because she is my dependent). But she might be entitled to one in 2020, assuming she is not a dependent then etc.
What should I do next? There doesn't seem to be anyway for my daughter to "withdraw" her stimulus payment request - she has not yet received the payment itself in her bank account, if that makes a difference.
Should I file by paper return and claim her as dependent? Is there any supporting documentation I should attach to my return to make it faster to process? I am expecting a significant refund due to some one-time solar energy credits, so I was hoping that there is an e-file corrective option for faster processing.
Or, should I just not take her as a dependent for 2019?
Thanks for the help.
-- Shankar Prasad