How to Fix a Rejected Tax Return in TurboTax: A Comprehensive Guide

So, you eagerly filed your taxes through TurboTax, only to receive the dreaded email: “Your return was rejected.” Don’t panic! A rejected tax return isn’t a sign of doom. It simply means the IRS (or your state) found an error preventing them from processing it. Think of it as a cosmic nudge to double-check your work. Luckily, TurboTax makes it relatively straightforward to identify and rectify these issues, so let’s dive in.

The key to fixing a rejected tax return in TurboTax lies in understanding why it was rejected. Typically, the IRS or state agency will provide a rejection code and a brief explanation. Access this information within your TurboTax account. Once you know the reason, navigate back through the relevant sections in TurboTax, correct the identified errors, and re-submit your return. Remember, you might need to unlock your return to make changes. With precision and attention to detail, you can ensure your return is accepted the second time around.

Understanding Tax Return Rejection

A rejected tax return isn’t the same as a return being audited. Rejection happens before processing. The IRS’s systems perform initial checks, looking for obvious errors or mismatches. Common causes for rejection include:

• Incorrect Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): The names and numbers on your return must match the Social Security Administration’s (SSA) records exactly.
• Dependent Information Errors: Mismatches in dependent SSNs, names, or birthdates are a frequent culprit.
• Filing Status Issues: Discrepancies between your claimed filing status and what the IRS has on file (especially after a divorce or significant life event).
• Duplicate Filing: Someone else (perhaps a dependent) has already filed with the same SSN.
• Bank Account Information Errors: Incorrect routing or account numbers for direct deposit refunds.
• Form Errors: Math errors on specific forms or missing required forms.
• Prior Year Issues: Unresolved problems from previous tax years can sometimes trigger rejections.

Steps to Fix Your Rejected TurboTax Return

Now, let’s get to the nitty-gritty of fixing that rejected return.

1. Identify the Rejection Reason

This is paramount. Don’t skip this step! The IRS or your state will provide a rejection code and an explanation. In TurboTax, this information is usually found in the “Tax Return Status” section or via email. Carefully read the explanation. It will point you directly to the problem area.

2. Unlock Your Return in TurboTax

Before you can make any changes, you’ll need to unlock your return. TurboTax locks your return to prevent accidental modifications after filing. Look for an “Amend” or “Unlock Return” button. The exact location varies depending on the version of TurboTax you’re using, but it’s typically found on the “Tax Home” screen.

3. Navigate to the Problem Area

Using the rejection reason as your guide, navigate back to the relevant section in TurboTax. For example, if the rejection involved a dependent’s SSN, go to the “Dependents” section.

4. Correct the Errors

Double-check all information. Compare the data in TurboTax to your source documents (Social Security cards, W-2s, 1099s, etc.). Pay meticulous attention to detail. Even a single transposed digit can cause a rejection.

5. Review Your Entire Return

While you’re fixing the identified error, take the time to review your entire return. It’s possible there are other, less obvious errors that you missed the first time around.

6. Re-File Your Return

Once you’ve made the necessary corrections and thoroughly reviewed your return, it’s time to re-file. Follow the on-screen instructions in TurboTax to submit your amended return electronically.

7. Consider Paper Filing (If Necessary)

In rare cases, you might be unable to resolve the issue through TurboTax, or perhaps the rejection relates to a specific form that TurboTax doesn’t support for e-filing. In such situations, you may need to print and mail your return to the IRS or state tax agency. Check the IRS website or your state’s Department of Revenue for instructions and the correct mailing address.

Important Considerations

• Deadlines: Even though your original return was rejected, you still need to meet the tax filing deadline. Fix and re-file your return as quickly as possible to avoid penalties and interest.
• E-Filing vs. Paper Filing: Generally, e-filing is faster and more convenient. However, if you continue to experience rejection issues, paper filing might be your only option.
• Contact TurboTax Support: If you’re struggling to identify or fix the problem, TurboTax offers customer support. Don’t hesitate to reach out to them for assistance.
• Contact the IRS: If TurboTax support can’t resolve the issue, you may need to contact the IRS directly. However, be prepared for long wait times.

Frequently Asked Questions (FAQs)

1. How long does it take for a rejected tax return to be accepted after fixing it?

After you resubmit your tax return with the corrections, the processing time is generally the same as for an original filing. E-filed returns usually take 21 days to be processed and refunds issued. Paper-filed returns typically take much longer, often several weeks or even months.

2. What if my rejected return is due to a previous tax year issue?

The IRS might reject your current return if you have unresolved issues from a prior tax year, such as unfiled returns or unpaid taxes. You’ll need to resolve these issues with the IRS before you can file your current return. This may involve filing the missing return, entering into a payment plan, or contacting the IRS to understand the issue in more detail.

3. Can I amend a rejected tax return?

No, you cannot amend a rejected tax return. A rejected return is not considered filed, so there’s nothing to amend. You must correct the errors that caused the rejection and resubmit the original return. An amendment is for correcting a return that was accepted by the IRS.

4. Is it possible to track my tax return after resubmitting it through TurboTax?

Yes, you can track the status of your resubmitted tax return using the IRS’s “Where’s My Refund?” tool on their website or through the IRS2Go mobile app. You’ll need your Social Security number, filing status, and the exact refund amount. TurboTax also provides status updates within its platform.

5. What happens if I miss the tax deadline because my return was rejected?

While you’re responsible for filing by the deadline, you can avoid penalties if you demonstrate reasonable cause for the delay. This generally requires showing that you made a good-faith effort to file on time, and the rejection was due to circumstances beyond your control. Document everything, including the rejection notice, the date you received it, and the steps you took to correct and resubmit the return. File as soon as possible.

6. Will I get a penalty for an error that caused the rejection?

Not necessarily. The IRS typically doesn’t penalize for minor errors that cause a rejection, as long as you correct and resubmit your return promptly. However, if the error involves substantial underreporting of income or fraudulent activity, penalties may apply.

7. What if I accidentally used the wrong filing status?

Incorrect filing status is a common cause for rejection. If you used the wrong filing status (e.g., filing as single when you’re married filing jointly), you’ll need to correct this in TurboTax and refile. Determine your correct filing status based on your marital status and dependent situation as of December 31 of the tax year.

8. My bank account information was rejected. What should I do?

Double-check the routing and account numbers you entered in TurboTax. Even a single digit error can lead to a rejection. Also, make sure the account is in your name (or your spouse’s name if filing jointly). If you’re still having trouble, consider requesting a refund by paper check instead.

9. Can TurboTax guarantee acceptance of my tax return?

No tax software, including TurboTax, can guarantee acceptance of your return. TurboTax can help you identify and correct errors, but ultimately, acceptance depends on the accuracy and completeness of the information you provide and the IRS’s processing.

10. What if my dependent’s SSN is correct, but the return is still rejected?

Ensure the name and date of birth on your return match the Social Security Administration’s records for your dependent. Even a slight discrepancy can cause a rejection. If you recently adopted a child or there’s been a legal name change, make sure the SSA records are up-to-date.

11. I tried fixing my return multiple times and it keeps getting rejected. What should I do?

If you’ve tried multiple times and your return is still being rejected, it’s time to seek professional help. A tax professional can review your return, identify the underlying issue, and provide guidance on how to resolve it.

12. Does rejecting my return flag me for an audit?

Not necessarily. Rejection is an initial screening process, not an audit. However, correcting the errors that caused the rejection is crucial to ensure your return is accurate and doesn’t raise any red flags that could trigger a later audit. A thorough and accurate return is always the best way to stay off the IRS’s radar.