Reject Code: IND-116-01
Each dependent in 'DependentDetail' on the return with 'EligibleForChldTaxCreditInd' checked must be under the age of 17. You may be eligible to claim the 'Credit for other dependents' if you meet the requirements for the credit.
Reject Code IND-116 occurs when a dependent is not eligible for the Child Tax Credit. The reject code will show "Additional Information" followed by the last four digits of the dependent SSN in question.
The IRS utilizes the Social Security database to verify names, social security numbers, and birth years, and uses the birth year information to determine the taxpayer, spouse, or dependent's age to be eligible to qualify for a tax credit that includes an age requirement, such as the Earned Income Credit or the Child Tax Credit.
Dependents must be under the age of 17 for the entire year to qualify for the Child Tax Credit in the year being filed, so this reject indicates the IRS believes they are too old to qualify.
If a return receives this reject, first verify that you have entered the dependent's birth information correctly. (The year is the most important part as it determines the taxpayer's age as of December 31 of the tax year.)
If the birth year in the return is correct, chances are the Social Security Administration has incorrect data and the taxpayer needs to liaise with the Social Security Administration to get its data corrected so that the IRS's data can be corrected.
It can take some time for the IRS database to be updated with the corrected information. To address the reject, the client can go through the aforementioned steps and then the return can be resubmitted or the return can be printed and mailed.
Either way they decide to go, the return won't be e-fileable, and the credits in the return won't be allowable, until the IRS data has been corrected.
Note that this reject can occur even if the taxpayer has successfully electronically filed tax returns claiming the credit in previous years, because the age mismatch did not impact the credit eligibility. For example, if the IRS e-file database this tax year shows a dependent has reached age 17 (instead of age 16 as reflected on the birth certificate and in the return), the return will reject since the IRS believes the dependent is ineligible for the Child Tax Credit. The child was otherwise eligible in prior years, so neither the taxpayer, the IRS, nor the SSA were aware that the child's age was incorrect in the databases.
Additional Information: