The tax deadline is nearing, and you must be considering filing your returns electronically or manually. The benefit with e-filing is the quick processing of refunds and the hassle-free submission. Though, there are a few things which might trouble you while e-filing like form rejection by the IRS. The IRS may reject your e-filing for a wide variety of reasons. And it gets quite frustrating sometimes to deal with unsuccessful attempts to e-file and figure out what went wrong. However, if you take care of a few basic things, you might save yourself from this loup of e-file rejections.
In this blog, we will throw light on the few pointers which you shall take care of while e-filing to avoid rejection of your return by the IRS and have a smooth tax-filing experience.
Taxpayer SSN Mismatch
One of the most common reasons for e-file rejections is the mismatch in names reported on your filing. The IRS checks the form submitted by you to ensure that the name matches the social security number reported on the form. Therefore, you shall have a thorough look at the form before submitting to check for possible typos.
Additionally, if you file a joint return, then you should ensure that the SSN reported on the form is of the primary taxpayer. For example, if you report your spouse as the primary taxpayers but use your SSN on all the forms, then this mismatch could result in rejection of your e-filing.
Another common mismatch occurs when someone gets married or divorced and has a change in name but doesn’t report it to the Social Security Administration beforehand. In such cases, you should ensure to notify the Social Security Administration to get your SSN reassigned to your new name so that when you file your return, the records match at all the cross-sections.
If, in any case, you are not able to get your SSN reassigned to the new name then you should continue with your older name while filing tax returns and avoid getting your form rejected by the IRS.
Incorrect Dependent Information
Another common mistake to take care of is mentioning the right dependent’s details in your returns. It required their full name, SSN, and relationship details. Your job is to ensure that you input the right information so that it matches with the details mentioned in the IRS master file. Mismatch, if any, can lead to the rejection of your e-filing by the IRS. The only way you can avoid this is by thoroughly checking the accuracy of your return before attempting to e-file.
Dependent Claimed on Another Tax Return
Another common reason for e-file rejection is reporting Social Security Number already claimed on another e-file tax return. This can happen in cases when your child or spouse e-files a tax return for recovery of withheld wages before you claim them or parents as a dependent while e-filing.
To avoid rejection, in this case, you shall ensure to reconfirm with your dependents if they have already filed their return or not. If yes, then you will probably have to mail your tax return, and it would be prudent not to e-file and get into unnecessary trouble. The same case would apply if you are planning to file the returns of your child as well – one can be e-filed, and the other will have to be mailed to the IRS.
The rejection of your e-filing can also happen when your ex-spouse, other parents, or caregiver, have already claimed the dependent on their federal income tax return. You shall double-check this and remove the dependent from your return if it was done by error.
If you feel you have the right to claim the dependent, then you shall claim them by mailing your refund and not e-file. In this case, the IRS will determine who truly can claim the dependent and receive deductions. The person who would not be found eligible would be charged with additional taxes and penalties for wrongly claiming a dependent on their return, and would also be required to file an amended return.
Filing Status Problem
There are certain tax filing statuses like ‘Head of Household’ and ‘Married and filing jointly’ need additional information on the return apart from just marking the necessary status box. In case, you claim yourself as the head of the household; then you would be required to claim a dependent on your return. The same way, if you are married and filing jointly, then you would be required to mention your spouse’s details on your return. In both cases, the names and SSNs of your dependent and spouse shall be mentioned accurately and any inaccuracy or forgetting to mention these details will lead to the rejection of your e-filing.
Income Doesn’t Reconcile
While e-filing, you would be required to submit all your W-2 information electronically. The case with W-2s is a bit different; the IRS will not reject your e-filing if the total income you report doesn’t match your W-2; they will reject it if your reporting income is less than the sum mentioned on your W-2.
The reason for such a rejection could be many, and hence you shall have a thorough look at your return to figure out what. The possible cause might be reporting the wrong amount on your return or inputting wrong W-2 amounts, or just simple mathematical error. Therefore, to avoid rejection, it would be prudent to double-check it before submission.
The IRS promotes that all taxpayers file their returns electronically. But a prerequisite for this smart and hassle-free way to file your taxes and receive your refunds is being aware of the basic hygiene to follow while doing so. By keeping the discussed points in mind, you can prepare your taxes with the utmost care and be sure to avoid such common mistakes. In any case, to help understand more such intricacies, you can contact your MyTaxFiler expert and have a fruitful discussion on how to seamlessly file your returns.