Common IRS Rejection Codes & Solutions

The information in this article is up to date for tax year 2025 (taxes filed in 2026).

Tax preparers often encounter a common issue – how to rectify the reject codes on clients’ returns. Getting a federal rejection can be frustrating if you are unfamiliar with the code’s meaning or how to fix it. This article aims to provide an overview of the most frequent Internal Revenue Service (IRS) reject codes along with actionable steps to resolve and resubmit the returns efficiently and quickly.

What are IRS rejection codes?

IRS rejection codes are error messages generated during the IRS e-file validation process when a tax return contains missing, incorrect, or mismatched information. These codes identify specific issues, such as invalid taxpayer data, calculation errors, or conflicts with IRS records, that must be reviewed and resolved.

When a return is rejected, it cannot be accepted or processed by the IRS until the error is corrected. Tax preparers must address the rejection code, update the return as needed, and resubmit it before the filing can move forward.

Reject code F8962-070

The reject code F8962-070 occurs when the IRS has records showing that the taxpayer, spouse, or dependent had Health Insurance Marketplace coverage and/or received an advance Premium Tax Credit (APTC), but Form 8962 is missing from the tax return.

Form 8962 (Premium Tax Credit) is used to reconcile advanced premium tax credits with the actual credit amount the taxpayer qualifies for based on household income. Because Form 8962 is required when marketplace insurance or APTC is involved, the IRS will reject the return until the form is included or the issue is otherwise resolved.

To correct reject code F8962-070:

To resolve reject code F8962-070, take the following steps:

If the client received Form 1095-A:

Add Form 8962 to the taxpayer’s return by either attaching the Form 1095-A(s) they received from the Health Insurance Marketplace. Form 1095-A (Health Insurance Marketplace Statement) reports marketplace coverage details and any advance premium tax credits paid on the taxpayer’s behalf. You could also add a statement to their tax return explaining why they don’t need to file Form 8962.

If the client did not receive Form 1095-A:

Instruct them to log in to their Health Insurance Marketplace account to download the form or contact the marketplace directly to request a copy.

Reject code IND-031-04

Reject code IND-031-04 indicates that the Adjusted Gross Income (AGI) or the self-select Personal Identification Number (PIN) used to electronically sign the return does not match IRS records for the prior year

This mismatch prevents the IRS from verifying the taxpayer’s electronic signature, resulting in a rejected return.

To correct reject code IND-031-04:

To resolve reject code IND-031-04, follow these steps:

Verify the AGI or self-select PIN entered on the return matches the IRS’s records exactly. If it was entered incorrectly, update the figure and resubmit the return.

If the taxpayer does not have a copy of last year’s tax return, obtain the prior year AGI by requesting an IRS tax transcript (online, by mail or through IRS e-services).

If the previous year’s tax return was filed late, the IRS may record the AGI as $0 because they may not have fully processed the return amount yet.

If you are confident that you’ve entered both the AGI and PIN correctly, but the return is still being rejected, you will need to file with paper forms and mail in the return. The IRS will not provide additional information regarding the taxpayer’s AGI or PIN if the return continues to receive this rejection.

Reject code IND-452 and IND-515-01

Reject code IND-452 and IND-515-01mean the primary taxpayer’s Social Security number (SSN) has already been used as the primary taxpayer on another tax return. Because each SSN can only be associated with one accepted return per tax year, the IRS rejects any additional filings using the same SSN. In some cases, this rejection may indicate identity theft, where someone else has filed a return using the taxpayer’s SSN.

To correct reject code IND-452 and IND-515-01:

To resolve reject codes IND-452 and IND-515-01, follow these steps:

Verify the client’s SSN was entered correctly. If there was a typo or data entry error, correct it and resubmit the return.

If the SSN is correct, ask the taxpayer whether they already filed their return themselves or with another tax preparer. They may have started the return with another preparer who went ahead and filed on their behalf. In that case, the return you have prepared will need to be filed using paper forms and mailed in. If the taxpayer has questions, refer them to the IRS Tax Assistance Office at 1-800-829-1040.

Reject code F1040-164-01

Reject code F1040-164-01 occurs when a taxpay claims the Earned Income Tax Credit (EITC) after the IRS disallowed it in a prior year. When this happens, the taxpayer is typically required to provide additional information to demonstrate eligibility before they can claim the credit again.

The IRS uses this rejection to prevent improper EITC claims until the required documentation is reviewed.

To correct reject code F1040-164-01:

To resolve reject code F1040-164-01, take the following steps:

If your client received a letter from the IRS indicating they could once again claim the EITC, complete Form 8862 and retransmit the return.
Form 8862 is used to show that the taxpayer now meets eligibility requirements for credits previously disallowed, including the EITC.

If the return is rejected again for a reason related to the EITC, your client may not yet be able to claim the EITC. The IRS advises on steps to take if a claim for EITC is denied. In some cases, the IRS requires taxpayers to repay previously disallowed EITC amounts (plus interest) before the credit can be claimed again.

The IRS will provide guidance on next steps if an EITC claim is denied.

Reject code R0000-905-01

Reject code R0000-905-01 indicates that the Electronic Filing Identification Number (EFIN) used to file the return is not recognized by the IRS. This can mean the EFIN is not in the IRS database, has not yet been accepted, or is invalid, expired, or deactivated.

An EFIN may also become inactive due to administrative issues, such as undeliverable IRS correspondence or incomplete application updates.

To correct Reject Code R0000-905-01:

Verify that you have entered the correct EFIN in your software setup. It’s possible your EFIN is inactive due to an outside circumstance, for example, undeliverable mail.

If so, an owner, Responsible Official, or Authorized Delegated User of your firm can make the appropriate updates to your application. To get this issue resolved, log in to your IRS e-Services account or call the IRS E-File Help Desk at 1-866-255-0654.

Reject codes FW2-502 and F1099R-502-02

Reject codes FW2-502 and F1099R-502-02 are part of a group of IRS rejections containing the number 502, all of which are caused by a mismatch between the Employer Identification Number (EIN) and the first four letters of the payer’s name as reported on the return.

The most common 502 rejections involve income reported on Form W‑2 or Form 1099‑R.

Form W‑2 (Wage and Tax Statement) reports wages and taxes withheld by an employer.

Form 1099‑R (Distributions From Pensions, Annuities, Retirement Plans, IRAs, or Insurance Contracts) reports retirement or pension distributions.

To correct reject codes FW2-502 and F1099R-502-02:

To resolve reject codes FW2‑502 and F1099R‑502‑02, take the following steps:

Verify that both the EIN and the name you entered on the return exactly match the information on the original tax documents, and correct any discrepancies before resubmitting.

If the return matches the tax documents, , contact the payer to verify the documents are correct. Request a corrected Form W-2 or 1099-R if possible, or file the return using Form 4852 as a substitute.

Reject codes R0000-500-01 and R0000-503-02

The Social Security Administration (SSA) provides the data that the IRS uses to verify a taxpayers’s name and Social Security number (SSN), while the IRS issues Individual Taxpayer Identification Numbers (ITINs).

Reject code R0000-500-01 indicates a mismatch between the primary taxpayer’s SSN or Individual Taxpayer Identification Number (ITIN) and the first four letters of their last name. Reject code R0000-503-02 is similar but applies to the spouse or secondary taxpayer’s information.

To correct reject codes R0000-500-01 and R0000-503-02:

To resolve reject codes R0000‑500‑01 and R0000‑503‑02, take the following steps:

Verify your client’s SSN or ITIN and last name spelling on their Social Security card or ITIN card. If the data entered on the return is incorrect, make the corrections and retransmit the return.

If your client has multiple middle or last names, note that the SSA database generally counts the third name in the sequence as the last name, which can cause a mismatch.

If the taxpayer recently changed their name, the SSA may take up to 10 days to update and transmit the changes to the IRS. Once the IRS records are updated, resubmit the return using the new name. If the information in the return is entered correctly, but the return continues to be rejected, the return must be filed on paper and mailed to the IRS.. The affected taxpayer should contact the SSA to verify or correct their records by calling800-772-1213 or visiting a local SSA office.

Note: These reject codes are common on joint returns because both spouses’ name and SSN/ITIN combinations must match the SSA records exactly. If one spouse’s information is causing repeated rejections, reviewing filing status options like Married Filing Joint vs. Married Filing Separately, may help to determine the best resolution in certain situations.

Reject code R0000-504-02

Like primary and secondary taxpayer, the IRS uses data provided by the SSA to verify a dependent’s name and SSN. Reject code R0000-504-02 occurs when a mismatch between a dependent’s SSN (or ITIN) and the first four letters of their last name in the IRS records.

The rejection message will identify the dependent causing the issue. For example, if the message says, “Additional Information: XXX-XX-1234”, the dependent whose SSN ends in 1234 is the one triggering the rejection.

To correct reject code R0000-504-02:

To resolve reject code R0000‑504‑02, follow these steps:

Verify the dependent’s last name and SSN or ITIN using their Social Security card or ITIN card. If the data entered on the return is incorrect, make the correction and retransmit the return. Be aware that if the dependent has multiple middle or last names, the SSA may not be using the correct last name.

If the information is correct and the return is still being rejected, advise your client to contact the SSA to verify the dependent’s information on file. If the SSA makes a correction, it may take up to 10 days for the updates to be transmitted to the IRS . Once the IRS database is updated, an electronic return can be resubmitted.

if the return continues to be rejected despite correct information, the return must be filed on paper and mailed to the IRS. Your client will still need to contact the SSA to verify or correct Any discrepancies. They can call the SSA at 800-772-1213 or visit a local SSA office for assistance.

Reject code IND-517-01

Reject code IND-517-01 occurs when a dependent listed on the return has already been claimed as the primary taxpayer or spouse on another return, and did not indicate that they were eligible to be claimed as a dependent on someone else’s return.

This rejection is common when parents attempt to claim a young adult dependent, such as a college student or recent graduate, who as already filed on their own without checking the box indicating they can be claimed as a dependent.

To correct reject code IND-517-01:

To resolve reject code IND‑517‑01, follow these steps:

Verify that the dependent SSN was entered correctly, this rejection could be caused by a data entry error and mistakenly entering someone else’s SSN.

File the return on paper. Your client may choose to file with or without the dependent, depending on the situation.

If filing with the dependent claimed, the dependent must file an amended return indicating that they are a dependent on someone else’s return.

If there is a dispute over dependency eligibility, advise your client to include supporting documentation with the paper return. This may include proof of residency, support, and relationship to substantiate their claim.

Reject code R0000-507-01

Reject code R0000-507-01 indicates that a dependent’s SSN reported on the tax return has already been used on another tax return. This typically means the dependent has been claimed by one or more taxpayer for the same tax year.
One common scenario for this rejection is when separated or divorced parents both attempt to claim the child. Less frequently, this rejection may occur due to a data entry error when entering the dependent SSN.

To correct reject code R0000-507-01:

To resolve reject code R0000‑507‑01, follow these steps:

Verify the dependent’s last name and SSN or ITIN, against their Social Security card. If the data is incorrect, make the correction and retransmit the return.

If the information is correct, the return must be filed on paper and mailed to the IRS. Include supporting documentation with the paper return to substantiate the taxpayer’s right to claim the dependent. This may include:

Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents from the custodial parent or,

A copy of the divorce or separation agreement outlining dependency rights.

Reject code IND-116-01

This reject code indicates that the Child Tax Credit was claimed for a dependent who is ineligible due to their age (older than 16). This can occur due to a data entry mistake of the dependent’s birth year, or if the IRS has the dependent’s birth year incorrectly listed in its database. The reject message will indicate as “Additional Information” the last four digits of SSN for the dependent in question.

To correct reject code IND-116-01:

To resolve reject code IND-116-0, follow these steps:

Verify the correct date of birth, and, if it’s incorrect, correct and resubmit the return.

If the date of birth on the return is correct, you’ll need to mail in a paper return along with supporting documentation.

Reject code F1040X-001

This code applies to a filed Form 1040-X, and it could mean one of four things:

The filing status on the amended return differs from the original return.

The original return was not e-filed.

The original return was not a Form 1040 or 1040-SR.

The primary taxpayer SSN and/or the spouse SSN don’t match the original return.

To correct reject code F1040X-001:

To resolve reject code FX1040X-001, follow these steps:

Mail in a paper amended return.To contact technical support, email TaxSlayer Pro or call us at 706-868-0985. Even in peak season, we maintain short wait times and unparalleled customer support to help answer your questions and get you back to work.

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