Tax preparation itself is overwhelming, let alone dealing with the frustrating experience of an unsuccessful filing attempt. But, without a doubt, electronic filing comes with a series of advantages and makes the entire process of filing more straightforward, and besides, you also get your refund earlier.
There are cases; however, that can warrant rejection of your electronically filed tax. As a result, you need to know what is wrong and reattempt. You, however, might not need to deal with the frustration of rejection if you are aware of some basic essential tips.
Social Security Matching
One of the most popular reasons for e-file rejection is name discrepancies. After filing, Uncle Sam will check the name and crosscheck it with what the Social Security has in records. As a result, make sure to always check your form to avoid any typos in the name.
For joint filers, the social security number must reflect that of the primary taxpayer. There could be a rejection if your spouse is the primary taxpayer, but you fixed your SSN on the tax forms. There will be an error since you will have name discrepancies.
Watch out for name changes as a result of divorce and marriage. People who changed their last name should contact the Social Security Administration to reassign their SSN to the new name to avoid rejection of your e-file. For cases in which you could not assign your SSN to the new name before tax preparation, a way to avoid rejection is to use the name that matches what is available on your Social Security Number.
Wrong Dependent Information
You will have to supply the full names, SSN, and relationships you have with all dependents you claimed on your tax form. Uncle Sam's computer will ensure that the name you supply matches what is available from the social security number.
Any discrepancy triggers a rejection, making it essential to make sure that all data from your dependent is correct before filing.
Dependent Already Claimed
This is a pretty common situation, and Uncle Sam will reject a return with the SSN of a dependent claimed on another tax return. Many times, this happens when the other parent, caregiver, or ex-partner claims such a kid before you, the return will be rejected.
What to do is to ask your ex or caregiver if they already claimed the dependent. If any of them already did, you should remove the dependent if the claim was in error. In cases, however, that you feel you have the right to claim such a dependent, file the return by mail.
Uncle Sam will determine who indeed can claim the dependent. The wrong taxpayer will be slammed with extra taxes, penalties and mandated to file a corrected tax return.
Issues with Status
Some filing statuses need more information, and the taxpayer cannot simply mark the box that corresponds. A head of household, for instance, needs to claim at least one dependent on the return. However, if you did not list your dependent or reported a wrong SSN or name, such will be rejected.
As a result, make sure to review your return and make sure it is accurate and has all essential information.
Your Income Does not Match.
For people filing electronically, they need to send in all copies of W2 electronically. While Uncle Sam will not reject your return because your entire Income, reported, did not match what is present on your W2, there will be a rejection of the entire W2 wages above what is present on your return.
There are many things to examine if you want to fix this problem. The reason could be:
The wrong amount reported on your return
Recording an incorrect amount on your W2 when transferring the information
Addition error
Again, a simple review of all information and examining all additions should take care of all issues.
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