Spouse AGI Rejected? How to Fix and Resubmit Your Tax Return

Tax season can be challenging, especially when unexpected issues arise with your filing. One common problem is the rejection of a return due to an incorrect spouse’s Adjusted Gross Income (AGI), which can delay refunds and create additional complications. Understanding the causes and solutions for this issue is key to ensuring a smooth filing process.

Typos in Data

Errors in data entry are a frequent reason for tax return rejections, particularly with the spouse’s AGI. A simple mistake, such as transposed numbers or a misplaced decimal point, can create discrepancies that lead to a rejection. The IRS relies on precise data matching, so even minor inaccuracies can disrupt the process. For example, if the AGI from the previous year’s return is entered incorrectly, the system flags it as a mismatch.

To avoid this, taxpayers should cross-check entries against official documents like IRS Form 1040 from the prior year, which contains the correct AGI. Tax preparation software can help minimize mistakes through built-in checks, but manual verification remains essential to ensure accuracy.

Differences from Prior Returns

Changes from previous filings can also cause AGI discrepancies. The IRS uses the prior year’s AGI as a verification tool, and any deviation can result in rejection. This issue may arise from changes in income sources, deductions, or filing status that are not reflected in the current return. For instance, a new job or a one-time bonus could alter the AGI and lead to a mismatch.

Legislative updates or tax code changes can also affect AGI calculations. For example, adjustments to tax credits or standard deductions can impact the final figure. Taxpayers should stay informed about these updates, especially those effective in 2024, to ensure their returns comply with current regulations and avoid errors.

Identification Mismatch

Rejections can occur when personal information, such as names or Social Security numbers, does not match IRS records. These mismatches often stem from typographical errors, name changes due to marriage or divorce, or even identity theft. The IRS cross-references data with the Social Security Administration and other federal databases, so any inconsistency can lead to a return being flagged.

This is particularly problematic for individuals who have undergone significant life changes. For example, a newly married couple might encounter issues if the name on the tax return hasn’t been updated with the Social Security Administration. Taxpayers should ensure that all personal information is current with both the IRS and Social Security to avoid such problems.

Filing Status Conflicts

Selecting the correct filing status is critical for accurate tax preparation. Issues often arise when spouses choose an inappropriate status, such as filing jointly when separate filings would be more beneficial due to differing income levels or tax obligations.

The Internal Revenue Code provides several options: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er). Each has specific criteria, such as dependency requirements for Head of Household or eligibility timelines for Qualifying Widow(er). Misunderstanding these criteria can lead to errors, particularly when individuals claim a status they don’t qualify for, like Head of Household without meeting residency requirements.

Steps to Correct Spouse AGI

When a return is rejected due to an incorrect spouse AGI, addressing the issue quickly and accurately is essential to prevent further delays. The process involves verifying records, reviewing prior year forms, and resubmitting the corrected return.

Verify Official Records

Start by confirming that the AGI matches official IRS records. Taxpayers should retrieve their prior year’s tax return, specifically Form 1040, to cross-check the reported AGI. If the original return isn’t available, the IRS offers a transcript service that provides a record of the filed return. This can be accessed online or by submitting Form 4506-T.

If the prior year’s return was amended, the AGI from the amended return must be used. For those who filed jointly last year but are filing separately now, the AGI should reflect the combined income from the joint return. Addressing these nuances can prevent repeated rejections.

Confirm Prior Year Forms

Once the AGI is verified, carefully review the prior year’s tax forms for discrepancies. Self-prepared returns may contain errors from manual calculations or data entry. For example, misreporting a spouse’s income or miscalculating deductions could affect the AGI.

If a tax preparer or software was used, revisit the original documentation to ensure consistency. Errors from outdated software or preparer mistakes can result in mismatches. Taxpayers should also verify that carryover amounts, such as net operating losses or capital loss deductions, were applied correctly, as these can influence AGI calculations.

Submit Updated E-Filing

After correcting the AGI, resubmit the return electronically. Most tax preparation software allows users to update the AGI field and resubmit without redoing the entire process. Ensure that all other information remains unchanged unless additional errors were identified during the review.

If the return is rejected again, contact the IRS directly to confirm the AGI on file. This can be done by calling the IRS helpline or visiting a local office. Persistent rejections may indicate a deeper issue, such as identity theft or a processing error, requiring IRS intervention. Once the correct AGI is confirmed and the return is accepted, taxpayers will receive acknowledgment from the IRS that the issue has been resolved.