How to Fix AGI on TurboTax

If the IRS rejects your e-filed return because of an incorrect Adjusted Gross Income (AGI), it's a common problem with a simple solution. The IRS uses your prior-year AGI to verify your identity. If the number you entered doesn't match their records, the system will reject your filing. This article explains how to find your correct prior-year AGI and fix the issue in TurboTax so you can successfully file your return.

Why the IRS Rejects Returns for an AGI Mismatch

When you e-file your tax return, the IRS confirms your identity using your prior-year AGI. A rejection, usually coded as IND-031 or IND-032, means the AGI you entered for your 2023 tax return to validate your 2024 filing doesn't match the IRS's records. Think of it as a security check that failed.

Here are the most common reasons for an AGI mismatch:

• Typo: You might have entered the number incorrectly or transposed digits.
• Wrong Year's AGI: The IRS needs your AGI from the tax return you filed last year (the 2023 tax year). Don't use the AGI from an older return or the AGI from this year's return.
• Amended Tax Return Confusion: If you filed an amended return (Form 1040-X) for 2023, you must use the AGI from your original 2023 return, not the updated one from the amendment. The IRS verification system checks the initial filing.
• Change in Filing Status: If your filing status changed from last year (e.g., filed jointly last year, separately this year), there's a specific way to handle the AGI. We'll cover that below.
• Didn't File Last Year: If you didn't file a 2023 tax return, the correct AGI to enter is "0".
• Used the Non-Filer Tool: If you used the IRS Non-Filer tool in 2023 to claim stimulus payments or other credits, your AGI is "1".

How to Find Your Correct Prior-Year AGI

Before you can fix the problem in TurboTax, you need the right AGI. You can find your 2023 AGI in several ways.

Method 1: Check Your 2023 Tax Return Document

The quickest way to find your AGI is on your tax return from last year. Get your copy of your 2023 Form 1040 and find the right line:

• Form 1040, 1040-SR, or 1040-NR: Your AGI is on Line 11.

If you used a tax preparer, they can provide a copy of your return. If you filed with different software last year, log into that account and download a PDF of your 2023 return. This is the most reliable place to find your AGI.

Method 2: Use the IRS Online Transcript Service

If you don't have your 2023 tax return, the IRS website is the next best source. The IRS's “Get Transcript” tool is a secure portal that lets you view and download your tax records, including your AGI.

Here's how to use it:

1. Go to the IRS Get Transcript page and click "Get Transcript Online."
2. You'll need to sign in with your ID.me account. If you don't have one, the site will guide you through setting it up. This verification is secure and involves confirming your identity with a photo ID and other information. It might take a few minutes.
3. Once logged in, you'll be asked for a reason for your request. Select "Federal Tax" and click "Go."
4. You'll see a list of transcript types. Select the "Tax Return Transcript" for the 2023 tax year.
5. Look for the line item titled "ADJUSTED GROSS INCOME." The number next to it is the exact AGI the IRS has on file for you.

This number is the one the IRS system is trying to match.

Handling Special Scenarios

AGI verification isn't always simple. Here's what to do in specific situations:

• If You Filed Jointly in 2023 but are Filing Separately in 2024: Both you and your former spouse must use the exact same AGI from your 2023 joint tax return. Do not split it.
• If You Didn't File in 2023: If you did not file a federal tax return last year and the IRS did not file one for you, enter 0 as your AGI.
• If You're a First-Time Filer (and over 16): If this is your first time filing a tax return, also enter 0 as your prior-year AGI.
• If You Used the IRS Non-Filer Tool in 2023: If you only used the IRS online tool to register for stimulus checks or the Child Tax Credit but didn't file a full return, your prior-year AGI is 1. Use this single digit.

Step-by-Step Guide to Fix AGI in TurboTax

Once you have the correct AGI, updating it in TurboTax is easy. After an e-file rejection, the software typically guides you to the problem.

1. Sign in to TurboTax: Log back into your account. You'll likely see a notice that your return was rejected. Click to start fixing the issue.
2. Go to the File Section: If you aren't taken there automatically, click on the "File" tab. TurboTax will show your return's status and an option to fix it.
3. Follow the Rejection Guidance: The software will explain the AGI mismatch and take you to the screen where you need to re-enter it. It may pre-fill the old, incorrect number.
4. Enter the Correct AGI: Carefully delete the old number and type in the correct AGI you found from your tax return or IRS transcript. Double-check the numbers to avoid another typo. Round the number to the nearest dollar (no cents).
5. Continue to Refile: After updating your AGI, follow the on-screen prompts to resubmit your return. TurboTax doesn't charge you to e-file again after a rejection. The process should now go through without a problem.

What to Do if Your Return is Still Rejected

If you've followed these steps and used the AGI from your IRS transcript, but the return is still rejected for an AGI mismatch, here are a few other things to check.

• Did you file with your spouse last year? Double-check that you're using the AGI from the jointly filed return. This is a common error.
• Verify SSN and Birth Dates: Also confirm that your Social Security Number and the SSNs of your spouse and dependents are entered correctly, along with any birth dates. Sometimes, a mismatch elsewhere can cause related error codes.
• Try your Self-Select PIN: On the AGI entry screen, you might have the option to use your 5-digit Self-Select PIN from your 2023 tax return instead of your AGI. This is another way to verify your identity. If you remember it or have it on your 2023 return copy, this could work.
• File by Mail: If these steps don't work and you're near the filing deadline, you can print your return and mail it. TurboTax provides a printable PDF of your complete return. Sign it, attach your W-2s and other required documents, and mail it to the correct IRS address. TurboTax will provide the right mailing address based on your state and whether you owe money or are expecting a refund.

Final Thoughts

An AGI e-file rejection is a minor technical issue, not a serious tax problem. You can usually solve it in minutes by finding your correct prior-year AGI from last year's tax forms or your official IRS transcript and resubmitting your return through TurboTax.

Fixing an AGI is straightforward once you know where to look. However, a busy tax practice handles far more complex issues daily, from clarifying state nexus rules to understanding new depreciation guidelines. Spending time searching for answers in forums or dense regulations takes away from advising clients. That's why we built Feather AI as a tool for professionals-it delivers quick, citation-backed answers from authoritative sources like the IRC and IRS guidance, providing reliable information for tax practitioners.