e-file rejected

[ER_Hopeful]

IRS rejected my e-file saying that someone already filed a form 8863 (education credit) using the same social security number as my daughter on their tax return. I dont have IRS err code at the moment.

I checked with my daughter and she did not claim that credit. What should I do here?

PS, filing with HR Block software. DD lives on her own near college.

 

[Ian S]

According to the IRS https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft :

If your Social Security number is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these actions:

• Respond immediately to any IRS notice: Call the number provided.
• If your e-filed return is rejected because of a duplicate filing under your Social Security number, or if the IRS instructs you to do so, complete IRS Form 14039, Identity Theft AffidavitPDF. Use a fillable form at IRS.gov, print, then attach the form to your return and mail your return according to instructions.
• Visit IdentityTheft.gov for steps you should take right away to protect yourself and your financial accounts.

 

[Phroig]

I had the same thing happen to me. We did everything outlined in the link posted by Ian. I'd like this sorted out before the IRS processes my return, so I've done an extension for now.

 

[cathy63]

Did your DD file a tax return? If so, did she check the box that says "someone can claim you as a dependent"?

 

[ER_Hopeful]

Did your DD file a tax return? If so, did she check the box that says "someone can claim you as a dependent"?

Yes to both questions. She didn't claim the education credit.

 

[cathy63]

That is odd. I assume the reject code is F8863-528-03? I think you will have to file a paper return this year. Probably you will get the full refund you ask for, but eventually you and the other person who used her SSN will get letters. Follow the instructions in the letter when it arrives.

In the meantime, your DD should get an IP PIN from the IRS here https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin to prevent anyone else from filing with her SSN in the future.

 

[ER_Hopeful]

so turns out there was a misunderstanding. DD e-filed as an independent first and claimed the edu credit, then she amended the return and changed to dependent and thought that the credit would get removed and told me she did not claim it.



i guess HR Block did not catch that.

 

[cathy63]

so turns out there was a misunderstanding. DD e-filed as an independent first and claimed the edu credit, then she amended the return and changed to dependent and thought that the credit would get removed and told me she did not claim it.



i guess HR Block did not catch that.

There's nothing Block could have done in this case. They sent everything to the IRS in the order they got it. It will take several months for the IRS to process your DD's amended return. You will have to file your return on paper.

The IRS will send letters challenging your claim of the education credit, but at least you can get a copy of your DD's amended return and use that as part of your reply.

For future reference, the best practice is file the return that claims the dependents and their credits, and wait for that to be accepted before filing the dependents' returns. It's always difficult if the dependents are filing their own returns because they usually want to file early to get their refunds even if their parents are waiting for corrected 1099s or something like that.

 

[Sunset]

so turns out there was a misunderstanding. DD e-filed as an independent first and claimed the edu credit, then she amended the return and changed to dependent and thought that the credit would get removed and told me she did not claim it.

i guess HR Block did not catch that.

It's not HR Blocks job to check your return against all other returns to see if someone claimed a credit you are claiming. That is the job of the IRS.

So who got the credit value now Seems like it's in limbo.

Good news is, supposedly the wait time to phone in is about 4 minutes, starting tomorrow.

 

[ER_Hopeful]

It's not HR Blocks job to check your return against all other returns to see if someone claimed a credit you are claiming. That is the job of the IRS.

i meant DD filed as a dependent but HR Block still allowed her to claim the edu credit, my initial thought was it should have blocked that. But as i dig deeper just now, turns out dependents can claim it if the parents haven't done so.


Her amended return got accepted yesterday (with the claim removed), I'll wait until she got her refund then e-file again.(i filed extension)