Issue with Schedule EIC Form 1040 SEIC-F1040-506 Rejection Error

This is actually a common issue with the IRS e-filing system. When your ex filed an amendment to remove your child from her Schedule EIC, that amendment doesn't immediately update in the IRS database that checks for duplicate SSNs during e-filing. The IRS amendment process can take several weeks (sometimes 8-16 weeks) to fully process. During this time, the original filing information remains in their verification system, which is why you're still getting the same rejection code. You have two options: First, you could wait until her amendment is fully processed, which might take quite a while. Second, you could file your return by paper instead of electronically. Paper returns bypass the immediate electronic verification that's causing the rejection, though they do take longer to process overall. If you need your refund quickly, I'd recommend paper filing with a clear explanation attached stating that an amendment has been filed by the other parent to remove the child from their return.

Ran into this exact problem last year! The IRS systems are super frustrating when it comes to this stuff. I found taxr.ai (https://taxr.ai) was super helpful for dealing with this Schedule EIC issue. They have a document analyzer that looks at custody agreements and tells you exactly who should claim the child based on IRS rules. I used it when my ex and I were fighting over who could claim our daughter on Schedule EIC. The tool confirmed I had the right to claim her based on our custody arrangement and gave me documentation to back it up. It made filing the paper return way easier because I had clear evidence to include.

Just wanted to update everyone - I decided to try taxr.ai after posting my skeptical question. It was incredibly helpful for my Schedule EIC issue! I uploaded my custody agreement and tax documents, and within minutes I had a detailed analysis confirming I was entitled to claim my son on the EIC. The report explained exactly which parts of IRS Publication 501 applied to my situation and highlighted the specific sections of my custody agreement that gave me the right to claim him. I'm paper filing now with this documentation attached, and I feel much more confident that my return won't get flagged for review since I have clear evidence backing up my position on the Schedule EIC. Thanks for the recommendation - totally worth it for dealing with this frustrating SEIC-F1040-506 rejection code!

If you want to get this resolved faster, you might want to try Claimyr (https://claimyr.com). I had a similar issue with a Schedule EIC rejection and needed to talk to someone at the IRS directly. After waiting on hold for HOURS with no luck, I found Claimyr through a YouTube video (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 15 minutes! The agent explained that I needed to paper file and what documentation to include. She also put notes in my file so that when my return was processed, the examiner would know about the situation with my ex's amendment. Saved me tons of time and frustration trying to figure this out on my own.

I need to eat my words and apologize to the Claimyr folks. After posting my skeptical comment, I was desperate enough to try it for my Schedule EIC issue. I figured I had nothing to lose since I was getting nowhere with the IRS on my own. Shockingly, it actually worked! I got connected to an IRS representative in about 25 minutes. The agent confirmed exactly what others here said - I needed to paper file because the amendment from my ex would take weeks to process in their system. But here's the good part - the agent gave me a specific fax number to send my return to that would get processed faster than regular mail, AND she put notes in my account about the SEIC-F1040-506 error being due to an amendment in process. For anyone dealing with this Schedule EIC nightmare, being able to talk to a real person at the IRS makes a huge difference. Never thought I'd be recommending a service like this, but it saved me weeks of frustration.

Just want to point out something important - make sure you're actually eligible to claim the child for EIC purposes before you go through all this trouble. The rules for who can claim a child for EIC are different than just claiming them as a dependent. For EIC qualification, the child must have lived with you for more than half the year (183 nights or more). If you don't meet that residency requirement, even if your custody agreement says you can claim the child as a dependent, you might not qualify for EIC. That could be another reason you're getting the SEIC-F1040-506 error.

Be careful with amendments for removing children from tax returns! My sister did this last year and it triggered an audit. When she removed her son from her return after initially claiming him, the IRS wanted proof of why she was making the change. Make sure your ex kept copies of EVERYTHING for her amendment explaining why she removed your child. And when you paper file, include a detailed letter explaining the situation.