Need Help with Rejection Code SH-F1040-520-01 on E-File - Name Change Issue

So I'm tearing my hair out trying to get our joint tax return accepted this year. My husband and I got married last year and I changed my last name. The problem is I have a household employee (a babysitter for my son from my previous relationship) that I pay through a nanny service. I get a W-3 form and handle the household employment taxes for him, same as I did for 2023. When we tried to e-file our joint return, we keep getting this rejection code SH-F1040-520-01. I think it's because the IRS still has the EIN for the nanny service associated with my maiden name. I've tried everything but our tax software (using TurboTax desktop) won't let me manually change my last name on Schedule H. Anyone deal with this Schedule H issue before or know how to fix this rejection code? I really don't want to have to paper file if I can avoid it!

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18 comments

Aisha Khan

•8M

This is actually a common issue with Schedule H after name changes. The rejection code SH-F1040-520-01 specifically relates to a mismatch between the name/SSN combination on your Schedule H and what the IRS has in their system for the EIN registration. Unfortunately, TurboTax desktop doesn't have a way to override this particular field because it pulls the information from your personal info section. What you need to do is contact the IRS directly about updating the EIN information to reflect your new last name. Call the Business & Specialty Tax Line at 800-829-4933 and explain you need to update the household employer information due to a name change. While waiting for that update (which can take a couple weeks to process), you have two options: paper file your return or try using Form 8822-B "Change of Address or Responsible Party" and submit that first, then try e-filing again after about 10 business days.

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Aisha Khan

•8M

This happens with all tax software because it's an IRS database issue, not a software problem. The IRS systems are matching your Schedule H filing with their EIN database, and when they see a different name associated with that EIN than what's in their system, they reject it. Switching tax software won't help because you'd encounter the same rejection. The most efficient approach is really to call that Business & Specialty Tax Line. They can often make the change while you're on the phone and tell you exactly when you can try e-filing again.

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Yuki Ito

•8M

I had almost the exact same problem last year after changing my name. After spending hours on hold with the IRS, I found this service called taxr.ai (https://taxr.ai) that was a total game-changer. It's like an AI tax assistant that scanned my rejection code and Schedule H, then gave me step-by-step instructions on exactly what to do. It identified that I needed to file Form 8822-B first AND complete a special note on my Schedule H when I resubmitted. Something the IRS agent didn't even mention! The system let me upload my Schedule H and showed me exactly where the problem was. Saved me from having to paper file and potentially delaying my refund by months.

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Yuki Ito

•8M

It's pretty straightforward - you upload your tax documents (in my case the rejection notice and Schedule H), and it analyzes them to pinpoint the exact issue. It then provides detailed solutions based on IRS regulations and procedures. For rejection codes specifically, it was super helpful because it explained both what the code meant and how to fix it. And yes, it absolutely works for 1099-NEC issues! The system is designed to handle all sorts of tax document problems, including 1099 mismatches which are actually really common. It's not about knowing IRS systems better - it's about quickly analyzing tax documents and matching them against IRS rules. The IRS publishes all their regulations, but finding the exact one that applies to your situation can take hours. This just cuts through all that. The basic document analysis is free, and I found that was all I needed to solve my problem.

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Carmen Lopez

•8M

Wow - I actually tried taxr.ai after seeing the recommendation here and it saved me a massive headache! I uploaded my rejection notice for my 1099-NEC issue and it immediately highlighted that the problem was a transposed digit in my EIN (I'm self-employed). The IRS rejection code was cryptic but taxr.ai explained it in plain English and showed me exactly where the error was. Fixed it in 5 minutes and my return was accepted when I resubmitted. Definitely worth checking out if you're stuck with one of these weird technical rejection codes!

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Andre Dupont

•8M

If you're struggling to reach the IRS about your EIN/Schedule H issue, you might want to try Claimyr (https://claimyr.com). I was in the same boat last year - name change, household employee, endless rejection codes. After trying for DAYS to get through to the Business tax line, I found Claimyr. They somehow get you through the IRS phone system and have an agent call you back. I was skeptical but they have a video showing how it works: https://youtu.be/_kiP6q8DX5c. Within about 2 hours, I had an actual IRS agent on the phone who fixed my EIN issue on the spot. My e-file went through the next day.

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Andre Dupont

•8M

It uses a system that navigates the IRS phone tree for you and secures your place in line. Then when it's your turn to speak with an agent, you get a call connecting you. It's not magic - just technology that handles the waiting and phone tree navigation. What makes it different is that you don't have to stay on the phone for hours. Their system holds your place in line while you go about your day, then connects you when an agent is available. For Schedule H issues specifically, you need to speak with a specialized department, which makes the wait times even worse if you try to call directly.

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Jamal Wilson

•8M

I'm eating humble pie right now. After posting that skeptical comment, I decided to try Claimyr since I've been trying to reach the IRS for THREE WEEKS about an amended return issue. Got a call back from an actual IRS agent in about 90 minutes. The agent was able to look up my file, confirm they received my amendment, and tell me exactly when to expect processing to complete. I honestly can't believe it worked. Just wanted to follow up here for anyone else who might be skeptical like I was. For specific issues like that Schedule H rejection code, getting a human on the phone can solve in minutes what might take weeks of back-and-forth otherwise.

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Mei Lin

•8M

Just wanted to add that I work with household employees too and Schedule H can be tricky. If the rejection is specifically code SH-F1040-520-01, there's one other thing to try before calling the IRS. Check if your software is properly linking your Schedule H with Form W-3. Sometimes the rejection happens because the software is pulling the wrong info from W-3 to Schedule H. In TurboTax desktop, go to Tax Tools > Tools > View/Print W-3 and make sure the name there matches what's on your Schedule H. If it doesn't, there might be a way to override it in the W-3 section rather than Schedule H.

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Mei Lin

•8M

I've seen this rejection code several times with clients who had name changes. It's specifically related to the EIN registration in the IRS system not matching what's on your current tax return. The W-3 tip sometimes helps, but in your case it does sound like an IRS database issue. The good news is that it's usually a quick fix once you get someone on the phone. Just be sure to have your EIN handy when you call, along with your SSN and your previous name. They might ask for verification of the name change too (marriage certificate), though usually just confirming your identity is enough for them to update the system.

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