Growing Without Rain

News and Views about Taxes

Why was my return rejected?

with one comment

It happens. You file your return electronically and it kicks back to you with a note stating that the IRS rejected it with some obscure numeric code. When it happens, what do you do?

First of all, verify that you correctly entered the information for you, your spouse, and your dependents, and that there are no typos (names, SS numbers, W-2 info, etc.). Most of the time, when a return is rejected, it’s because of a mismatch between information that the IRS has on file and the information received on the return – and more often than not, it’s because of a typo. All you should have to do at that point is correct the typos and resubmit the return.

Other than typos, these are the most common reasons for rejection that we see:

1. Error code 507, often with error code 506. We see this one with single parents, and it means that someone else (usually the other parent) has already filed a return claiming the same dependent. Code 507 applies to the 1040, code 506 applies to Form EIC for earned income credit. The IRS will not accept another electronically filed return with that dependent, so you can either file a paper return, or file an electronic return without the dependent and then file an amended return later with the dependent – in either case, you should attach the supporting documentation which justifies your claim to the dependent’s exemption to the paper return.

2. Error code 500, and error code 503. We see this one a lot for newlyweds, and it usually means that one spouse or the other has forgotten to change their Social Security card to show their married name. Just change the name on the return to match the name on the card – and make sure you change the name before next year!

3. Error code 502. We see this one mostly on hand-prepared W-2s, and it means that the Employer ID number on the W-2 is invalid. In this case, you should contact the employer to have a new W-2 issued with the correct EIN.

4. Error code 515. When you see this, it means that the return has already been submitted to the IRS. Most of the time this results from a transmission hiccup which leads to a return neing sent twice, and you don’t need to do anything. If you are absolutely certain that the return wasn’t submitted before, your best bet (as much as I hate to say it) is to call the IRS.

If you see one that you can’t figure out, ask a tax pro for an explanation; many of us don’t mind sharing.

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Written by nctaxpro

January 23, 2010 at 11:25 am

Posted in Federal, Taxes

One Response

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  1. I recieved an email from turbotax that my taxes were rejected due to error 515. I have been getting the run around from the ssn, irs and id theft dept. Is this most likely a “hiccup” or should I be alarmed that someone has most likely stolen my identity?

    Matthew Gordon

    April 16, 2012 at 5:06 pm


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