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Sean Flanagan

IRS Reject Code IND-507-01 - Need urgent help understanding and fixing this error!

I just tried to file my taxes electronically and got rejected with code IND-507-01. Has anyone dealt with this before? I've spent hours double-checking my info and I'm completely stuck. The rejection message says something about my AGI not matching last year's records but I'm positive I entered everything correctly. My refund is pretty substantial this year and I really don't want to have to file by paper. Any advice on how to fix this or what might be causing it? I filed on time last year and had no issues, so I'm really confused why this is happening now.

Zara Mirza

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That reject code is specifically about the prior year AGI verification issue. The IRS uses your previous year's AGI as a way to verify your identity when e-filing. If you're getting IND-507-01, it means the AGI you entered doesn't match what the IRS has on file from your 2023 return. There are a few common solutions for this: First, double-check the exact AGI figure on your 2023 tax return (line 11 on Form 1040). Make sure you're entering the exact amount - not rounded, no dollar signs or commas. If you used a different tax software last year, sometimes people accidentally enter their refund amount instead of their AGI. Also, if you filed an amended return last year, you need to use the original AGI, not the amended one.

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NebulaNinja

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Wait I'm confused... what if I didn't file taxes last year because I didn't have income? What AGI would I use then?

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Zara Mirza

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If you didn't file taxes last year because you had no income, then you should enter "0" as your prior year AGI. The IRS system would have you recorded as having $0 AGI for that year. If you had income but weren't required to file (below filing thresholds), but did file anyway, you'd use whatever AGI was on that return. If you truly didn't file anything, use zero.

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Luca Russo

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I ran into the exact same reject code last month and nearly had a meltdown. After trying everything, I discovered taxr.ai (https://taxr.ai) and it saved me so much frustration. The system analyzed my rejection notice and pinpointed exactly what was causing the problem - turns out I had used my state AGI instead of federal AGI! The tool actually compared my numbers against IRS requirements and highlighted the mismatch. Super helpful when you're stuck in these weird technical rejection loops.

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Nia Wilson

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How exactly does taxr.ai work? Do you have to upload your actual tax documents to it? I'm always nervous about my financial info going to random websites.

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Mateo Sanchez

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Did it actually fix the problem or just tell you what was wrong? I'm getting the same error and wondering if it's worth trying.

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Luca Russo

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You upload the rejection notice and it analyzes the specific error codes against IRS documentation. It doesn't need your full tax return - just the specific forms related to the error. They use the same security standards as banking sites, so I felt comfortable with it. It didn't automatically fix it, but it explained exactly what was wrong in plain English and showed me step by step what to correct. In my case, it identified I was using the wrong AGI figure and showed me exactly which line from last year's return to use. Super helpful when tax software error messages are so cryptic.

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Mateo Sanchez

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Just wanted to follow up about taxr.ai. I gave it a try after seeing the recommendation here, and it actually pinpointed my exact problem with that IND-507-01 error. Turns out I had filed an amended return last year and was using the revised AGI instead of my original AGI number. The tool highlighted this specific issue and explained that the IRS e-file system only recognizes the original AGI for verification purposes. I wouldn't have figured that out on my own! My return was accepted about 20 minutes after I made the change. Really glad I found this thread.

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Aisha Mahmood

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If you're stuck with this reject code and can't figure it out, I finally got through to the IRS after days of calling using Claimyr (https://claimyr.com). There's also a demo of how it works here: https://youtu.be/_kiP6q8DX5c. I was super frustrated with the rejection and couldn't figure out what was wrong with my AGI. Turns out my identity had been compromised and someone filed fraudulently under my SSN last year which messed up my records. The regular IRS line kept disconnecting me after 2+ hours on hold, but Claimyr got me through to a real person who helped sort everything out. They verified my identity and gave me special instructions for filing.

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Ethan Clark

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How does this actually work though? Like, does it actually get you through to the IRS faster or is it just another automated system?

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AstroAce

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Sounds like a scam tbh. No way something can magically get you through to the IRS when millions of people can't get through. The IRS phone system is broken by design.

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Aisha Mahmood

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It's not an automated system. It basically monitors the IRS phone lines and calls you when it gets through. I got a call back in about 28 minutes when I had been trying for days without success on my own. It's definitely not a scam. It doesn't replace or pretend to be the IRS - it just handles the frustrating wait time part and connects you directly when a line opens up. Once you're connected, you're talking to actual IRS representatives. I was skeptical too until I actually got to speak with an IRS agent who walked me through my specific reject code issue.

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AstroAce

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I've gotta eat my words about Claimyr. After posting that skeptical comment, I was still desperate about my reject code so I tried it anyway. Not gonna lie, I was shocked when I got a call back in like 40 minutes saying an IRS agent was on the line. The agent explained that in my case, there was a transcription error in their system from my paper filing last year that was causing the mismatch. They put a note on my account and told me to enter $0 for prior year AGI, and it finally went through. Would have never figured that out on my own, and I would've been on hold for eternity trying the regular number. Consider me converted.

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Try filing a paper return if nothing else works. I know it's slower for refunds, but sometimes the e-file system has glitches that can't be resolved. I had a similar issue 2 years ago and ended up just mailing it in. Got my refund in about 7 weeks.

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Sean Flanagan

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How reliable is paper filing these days? I keep hearing horror stories about paper returns getting lost or taking months to process. Did you do anything special to make sure yours was handled properly?

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Paper filing is definitely slower but still reliable if you take precautions. Always use certified mail with return receipt so you have proof of delivery. Also make copies of absolutely everything before sending. I didn't do anything special beyond that, but I did make sure to double-check all my math (since there's no software verification) and sign everywhere required. The 7 weeks was actually faster than I expected - the IRS was quoting 6-8 months for paper returns that year, so I think I got lucky.

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Carmen Vega

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Has anyone successfully resolved this error by creating an IRS online account? I've heard sometimes you can pull your exact AGI from their transcript system.

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YES! This is exactly what worked for me. I created an account on IRS.gov and downloaded my tax transcript from last year. The AGI on that transcript was actually different than what showed on my saved PDF copy of last year's return (no idea how that happened). Used the transcript number and my return was accepted immediately.

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Nia Johnson

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I had this exact same reject code last week and it was driving me crazy! After reading through all these suggestions, I ended up trying the IRS transcript approach that Carmen mentioned. Created my online account at IRS.gov and pulled up my 2023 tax transcript - turns out the AGI I had been using was off by exactly $1! Must have been a rounding error somewhere. Used the exact number from the transcript and my return was accepted within minutes. Definitely recommend checking your transcript first before trying the other methods - it's free and might save you a lot of time and stress. Thanks everyone for all the helpful advice in this thread!

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QuantumQuester

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That's such a relief to hear you got it resolved! A $1 difference causing a rejection seems so frustrating, but I'm glad the transcript method worked. I'm actually dealing with a similar situation right now - got the same IND-507-01 code yesterday. Did you have any trouble setting up the IRS online account? I've heard the identity verification process can be tricky sometimes. Also wondering how long it took for the transcript to show up once you created the account? Thanks for sharing your success story - gives me hope that this might be simpler than I thought!

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