TurboTax E-File Rejected? The Real Fix for IND-031-04, FW2-502 & R0000-504-02

A rejected e-file feels alarming, but a rejection means the IRS computer bounced your return before processing it — nothing is filed, nothing is wrong with your refund yet, and you can usually fix and resubmit in minutes. The trick is decoding what the rejection code actually wants.

Here are the codes that account for most rejections, what each really means, and — something most guides won’t tell you — the cases where no fix exists and you must paper-file.

IND-031-04 — “Your AGI doesn’t match” (the #1 rejection)

What it means: the prior-year Adjusted Gross Income you entered to verify your identity doesn’t match what the IRS has on file for you.

The real fix:

• Use the AGI from your originally filed prior-year return — not an amended figure, not a corrected one the IRS sent you.
• Filed late last year (after mid-November)? The IRS database may not have your AGI yet — enter $0.
• Didn’t file at all last year? Enter $0.
• Still rejecting with the “correct” number? Pull your actual IRS transcript at irs.gov (Get Transcript) and use the AGI the IRS thinks you have — mismatches on the government’s end are common, and their number is the one that has to match.

FW2-502 — “Employer EIN doesn’t match”

What it means: the employer name or EIN you typed from your W-2 doesn’t match the IRS database.

The real fix: re-enter the EIN exactly as printed on the W-2 (box b) — the most common culprit is a typo or auto-import error. If the W-2 itself is wrong, your employer must issue a corrected W-2c; you can’t fix their mistake in TurboTax.

R0000-504-02 — “Dependent’s name/SSN doesn’t match”

What it means: a dependent’s name or Social Security number doesn’t match Social Security Administration records.

The real fix: check the dependent’s Social Security card and enter the name exactly as printed — including hyphenations and middle names. Recently married/changed names? SSA records lag; the return must match SSA’s current record, not the new name.

The honest part: rejections you CANNOT fix

Some returns will reject no matter how many times you resubmit:

• Someone already claimed your dependent (or someone filed using your SSN). The IRS e-file system rejects all duplicates — the second filer is blocked even when they’re in the right.
• Government database errors on your identity that you can’t change from tax software.

The only path: print and paper-file your return. The IRS then processes both claims by hand, applies the tiebreaker rules, and the rightful claimant wins (the other party gets audited). Every resubmission attempt before that is wasted time — switching to different tax software won’t fix it either, because the rejection comes from the IRS, not from TurboTax.

Rejected after the deadline?

There’s a grace period: if you e-filed on time but got rejected after the filing deadline, you generally have 5 days to fix and resubmit (or paper-file) without late penalties. Don’t sit on a rejection email.

FAQ

Does a rejection mean I’m being audited? No. The return was never processed — it’s a data-matching bounce, not a review.

Will I be penalized for a rejection? Not if you resubmit promptly (see the 5-day grace rule above).

Should I switch tax software after repeated rejections? Only for unrelated reasons (price, features). The IRS rejects the data, not the software — though if you’re price-shopping anyway, free alternatives exist for simple returns.

Sources: TurboTax — What does my rejected return code mean?, TurboTax — Fix FW2-502, TurboTax — Fix R0000-504-02, TurboTax — Rejected after deadline