Why Was My Tax Return Rejected and How Can I Fix It?

Filing a tax return can be a daunting task, and having it rejected adds another layer of stress. Understanding the reasons behind a rejection is essential for ensuring your financial obligations are met accurately. This article explores common issues leading to tax return rejections and offers actionable solutions to address them, helping you avoid delays or penalties in the future.

Mismatch of Personal Information

A common reason for tax return rejections is mismatched personal information, such as misspelled names, incorrect Social Security numbers, or outdated addresses. For example, if you recently changed your name due to marriage or divorce but didn’t update the Social Security Administration (SSA), your return could be flagged. Ensuring your personal information aligns with IRS and SSA records is crucial.

The IRS uses accurate personal data to process returns and prevent fraud. Taxpayers should verify their information against official documents like Social Security cards and government-issued IDs. Tax preparation software with built-in validation checks can also help catch errors before submission.

Invalid or Expired Tax Identification

Tax returns may be rejected if they include an invalid or expired Tax Identification Number (TIN), such as a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Employer Identification Number (EIN). For example, ITINs expire if not used on a return for three consecutive years. Taxpayers must ensure their TINs are current to avoid complications.

Using an invalid TIN can result in disqualification from certain benefits, like the Child Tax Credit or American Opportunity Tax Credit. To resolve this, taxpayers should renew expired ITINs by submitting Form W-7 with the required documentation. Taking this step can prevent disruptions and ensure access to eligible credits.

Unreported Income Differences

Unreported income often triggers rejections, as the IRS cross-references data to ensure all earnings are reported. This issue commonly arises when taxpayers overlook income from freelance work, rental properties, or investments. For instance, failing to report income listed on a Form 1099-NEC can result in discrepancies flagged by the IRS.

Beyond rejections, unreported income can lead to penalties, including a 20% fine for substantial underreporting. It may also prompt an audit, increasing liability. To avoid these issues, taxpayers should keep detailed records of all income sources and use financial tools or professional services for accurate tracking.

Wrong Filing Status

Choosing the wrong filing status is another frequent error that can result in a rejected return or inaccurate tax calculations. The IRS offers five statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) with Dependent Child. Each has distinct tax implications, including varying standard deductions and credit eligibility.

Taxpayers often make mistakes due to complex life circumstances, such as separation or divorce. For example, someone legally separated by year-end might incorrectly file as Married Filing Jointly instead of Single or Head of Household. Carefully reviewing living arrangements and familial responsibilities is key to selecting the appropriate status.

Another Return with the Same Social Security Number

When multiple returns are filed under the same Social Security Number (SSN), the IRS flags them, often rejecting subsequent submissions. This can result from simple errors, such as using a spouse’s SSN by mistake, or more serious issues like identity theft.

To resolve this, taxpayers should contact the IRS to clarify the situation. If identity theft is suspected, filing Form 14039, Identity Theft Affidavit, is necessary. Monitoring credit reports for suspicious activity can also help secure SSNs. For genuine mistakes, amending the return with the correct information typically resolves the issue.

Missing Digital Signature

A missing digital signature is a common technical issue that can lead to rejection. The IRS requires all electronically filed returns to include a digital signature as a legal acknowledgment of the information provided.

To fix this, taxpayers should resubmit their return with the proper electronic authentication. Most tax preparation software includes safeguards to prevent this oversight, but it’s still important to double-check all submission steps. Ensuring software is up-to-date can also help avoid technical glitches.

Claims for Disqualified Credits or Deductions

Claiming credits or deductions without meeting eligibility criteria can result in rejection and additional scrutiny. For example, claiming the Earned Income Tax Credit (EITC) without qualifying children or appropriate income levels can lead to immediate denial.

Taxpayers should carefully review the requirements for each credit or deduction, consulting IRS guidelines or seeking professional advice if unsure. If disqualified claims are made, amending the return to remove them is necessary to resolve the issue.

Incomplete Supporting Attachments

Missing or incomplete attachments can delay processing and lead to rejections. The IRS requires documentation for certain claims, such as Form 8863 for education credits or Form 2441 for child care expenses.

To prevent this, taxpayers should prepare all required documents in advance and ensure everything is included before submission. Digital filers should verify that attachments are properly uploaded and legible. Using a checklist can help ensure no documents are overlooked. If a rejection occurs, submitting the missing attachments promptly can expedite the resolution process.