Why Was My Tax Return Rejected if My AGI Is Correct?

A rejected tax return can be a frustrating experience, especially when you are confident your Adjusted Gross Income (AGI) is accurate. The Internal Revenue Service (IRS) uses your prior year’s AGI as a crucial security measure to verify your identity when you e-file. If the AGI on your current return does not precisely match the amount the IRS has on file from your previous year, your submission will be rejected. This article explains common reasons for these rejections and provides clear guidance on how to find your correct AGI and successfully resubmit your tax return.

Common Reasons for AGI Rejection

One of the most frequent causes for an AGI rejection is a simple data entry error, such as a typo when transferring the amount from your previous year’s tax return. Even a minor discrepancy can lead to a rejection because the IRS system requires an exact match for identity verification. Using the AGI from the wrong tax year is another common pitfall; for example, if you are filing your 2023 tax return, you must use your 2022 AGI, not your 2023 AGI.

Complications can also arise if you filed an amended return (Form 1040-X) for the previous year. In such cases, the IRS system may still have the original AGI on file, and you should use the AGI from your original tax return, not the amended one. Identity theft is a less common, but serious, reason for an AGI mismatch, as a fraudulent return could alter IRS records.

First-time filers or individuals who did not file a tax return in the prior year should typically enter “0” as their AGI, or indicate “Did Not File” if that option is available in their tax software. Changes in marital status from the prior year can also affect AGI reporting, potentially leading to a mismatch. The IRS provides specific error codes with rejected returns, which can help pinpoint the exact issue, often related to identifying information like AGI, date of birth, or Social Security number.

How to Find Your Correct AGI

To resolve an AGI rejection, accurately determining the AGI the IRS has on file for the prior tax year is essential. Your prior year’s tax return is the most direct source; locate your Form 1040 for the preceding year and find the AGI on Line 11. If you used tax preparation software, you can usually log back into your account to access and download a copy of your previous year’s return.

If you do not have access to your prior year’s tax return, the IRS “Get Transcript” service on IRS.gov is an official and free method to obtain this information. You can request a “Tax Return Transcript,” which provides most of the line items from your original return, including your AGI. To use the online service, you will need to verify your identity, which typically involves providing your Social Security number, date of birth, and possibly financial account numbers like a credit card or loan account.

After successful online verification, you can immediately view and print your transcript. If you prefer, or if online access is not feasible, you can request a transcript by mail, which usually arrives within 5 to 10 business days. This can be done through the “Get Transcript by Mail” option on the IRS website or by calling 1-800-908-9946.

Steps to Resubmit Your Tax Return

Once you have identified the correct AGI from the prior tax year, the next step is to update your tax return and resubmit it. Most tax preparation software programs will guide you to the section where your return was rejected, often providing a specific error code. You will need to navigate to the AGI field and enter the verified amount, ensuring it matches the IRS records precisely.

After correcting the AGI, you can typically resubmit your return electronically through the same tax software you used for the initial filing. There is usually no additional fee for resubmitting a rejected return. It is important to confirm the software indicates a successful electronic submission, often with a confirmation message or updated status.

If electronic resubmission continues to fail, or if it is not an option, mailing a paper return becomes necessary. Print the corrected return, sign and date it, and attach any required documents such as W-2s or 1099s. Crucially, if you mail your return, do not attempt to e-file it again, as this can cause further processing delays.

The mailing address for your paper return depends on your state and whether you are including a payment. Find the address on the IRS website or in the instructions for Form 1040. After mailing, allow several weeks for the IRS to process your paper return.