Why Does My Tax Return Keep Getting Rejected? Common Reasons Explained

Filing a tax return can be a daunting task, especially when it results in rejection. Understanding the common reasons behind these rejections is essential for avoiding delays and ensuring smooth processing.

Inaccurate Personal Info

One major reason for tax return rejections is incorrect personal information, such as misspelled names or inaccurate Social Security numbers. The IRS relies on precise data to match tax returns with its records, and even minor mistakes can cause mismatches. Taxpayers should confirm their details align with those on file with the Social Security Administration.

Life changes like marriage, divorce, or the birth of a child can also affect personal information. Taxpayers must update relevant agencies to ensure consistency and avoid errors.

Wrong Filing Status Selection

Selecting the wrong filing status is another frequent mistake. The IRS offers five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Each has specific eligibility criteria and tax implications. For example, claiming “head of household” requires maintaining a home for a qualifying person, a condition often misunderstood.

Choosing the incorrect status can impact tax liability and eligibility for credits like the Earned Income Tax Credit. Life events such as marriage, divorce, or a spouse’s death can complicate status decisions. Taxpayers should evaluate their circumstances annually and consult IRS guidelines or a tax professional to ensure accuracy.

Mismatched Tax Documents

Mismatched tax documents often trigger rejections. This happens when information on forms like W-2s or 1099s doesn’t match IRS records. Employers and financial institutions submit these forms directly to the IRS, so discrepancies, such as reporting incorrect income, can lead to issues.

Filing before receiving all necessary documents increases the risk of errors. Additionally, amended or corrected forms issued after filing can cause mismatches. Taxpayers should wait until all forms are received and verify their accuracy before filing.

Duplicate Dependent Claims

Duplicate dependent claims are common in situations involving divorced or separated parents. The IRS allows only one person to claim a dependent per year and uses tie-breaker rules, prioritizing the parent with whom the child lived longer or, if equal, the parent with the higher adjusted gross income (AGI).

Claiming a dependent affects eligibility for credits like the Child Tax Credit, which can reduce liability by up to $2,000 per child. Properly determining who can claim a dependent avoids disputes and ensures compliance with IRS rules.

Unverified Identity

Identity verification issues can also lead to rejections. To combat identity theft, the IRS has tightened security measures. If the provided information doesn’t match IRS records, or the taxpayer’s identity cannot be verified, the return may be rejected.

Address changes or discrepancies between current and prior filings can cause verification problems. Taxpayers can enhance security by obtaining an Identity Protection PIN (IP PIN), a six-digit number issued by the IRS to protect against identity theft. Keeping information up-to-date with the IRS is critical.

Missing or Incomplete Forms

Incomplete or missing forms are another frequent cause of rejection. Tax returns often require supplementary forms to validate claims, deductions, or credits. For example, taxpayers claiming education credits must include Form 8863, while those reporting self-employment income need Schedule C.

Taxpayers should review their returns to ensure all necessary forms are included and completed correctly. Leaving essential fields blank or making calculation errors can result in rejections. Using tax preparation software or consulting a professional can help avoid these mistakes.