Why was my federal tax return accepted but state got rejected instantly?

This happens more often than you'd think! State and federal returns have different validation systems, so something that passes federal standards might trigger a rejection at the state level. The most common reasons for state rejections include: 1. Identity verification issues - some states have implemented additional identity checks 2. Mismatched information between what the state has on file and what you entered 3. A state-specific credit or deduction that wasn't properly documented 4. State-specific forms that might be missing 5. Prior year state tax issues that are unresolved Before mailing in your return, I'd recommend calling your state tax department directly. Unlike TurboTax, they can actually see the specific rejection code and tell you exactly what's wrong. This could save you from having your paper return rejected for the same reason.

When this happened to me last month, I was pulling my hair out until I found out about taxr.ai (https://taxr.ai) and it literally saved me so much time. I uploaded my rejected filing and it analyzed everything and showed me EXACTLY why my state return was getting kicked back - turned out I had accidentally entered an employer ID number wrong on one of my W-2s and the state system caught it but federal didn't. The tool highlighted the discrepancy that TurboTax never flagged! I was able to fix it and resubmit through paper filing with the correction and it went through fine. Definitely worth checking out if you're stuck trying to figure out what went wrong.

I was exactly where you are a couple weeks ago! After reading about taxr.ai here, I decided to give it a try since I was desperate. My state return (Michigan) kept getting rejected and TurboTax just said "resubmit by mail" without any explanation. Taxr.ai found that my address on file with the state had an old apartment number that I forgot to update when I moved within the same building complex last year. Such a stupid little thing, but the system was matching my name and SSN to the wrong address format! I was able to update my address with the state first, then submit the paper return with the correct info. Got my confirmation of acceptance yesterday!

If you're trying to reach your state tax department and keep getting stuck on hold forever (like I did), you might want to try Claimyr (https://claimyr.com). They have this service where they actually wait on hold with the tax office for you and then call you when a real person is on the line. I was super skeptical at first but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c I used it when my state return got rejected for some mystery reason last month, and instead of wasting 3 hours on hold myself, they called me when they had a tax rep on the line. The rep immediately told me the exact error code and what it meant. In my case, I had entered my driver's license issue date wrong (off by one digit) which for some reason triggered a rejection. Would never have figured that out on my own!

OK I need to eat crow here. After posting my skeptical comments, I was still stuck with my rejected California return, so I figured what the hell and tried Claimyr. It actually worked exactly as described! They waited on hold with the CA Franchise Tax Board for almost 3 hours (I went about my day completely unbothered), then my phone rang and suddenly I was talking to a tax rep. The reason for my rejection? I had two W-2s and apparently one employer had checked a box indicating I had state health insurance through them when I didn't. The rep walked me through how to correct it on my paper return before mailing. Would NEVER have figured this out without talking to the state directly, and I never would have made it through that hold time on my own.

Have you checked if your state has a different AGI calculation than federal? This burned me last year. Some states don't allow certain deductions or have different rules for reporting income. Double check that all your state-specific additions and subtractions are correct.

Did you try checking the status on your state's tax website? Sometimes they provide more detailed info there than what TurboTax shows. My brother had this exact issue with his Wisconsin return, and when he checked the state website, there was a message about a mismatch with his driver's license number.

I went through this exact same nightmare last year! One thing that helped me was checking if there were any updates or changes to my state tax account that I forgot about. In my case, I had changed my bank account for direct deposit with the state separately from federal, and the old account information was still in TurboTax. Also, some states have stricter validation rules for things like dependent SSNs or require additional verification for certain credits. Before you mail in that paper return, I'd suggest logging into your state's tax portal (if they have one) and double-checking that all your personal information matches exactly what they have on file - address, phone number, bank account, etc. Another thing to try is calling the state tax department early in the morning right when they open. I know it sounds obvious, but I had much better luck getting through around 8 AM than later in the day. They were able to tell me the specific rejection code which pointed to a simple data entry error that TurboTax never caught. Don't give up on the electronic filing just yet - sometimes fixing one small detail can get it to go through!

I had this exact same problem with my Texas return two years ago! After going through all the suggestions here, what finally worked for me was discovering that I had entered my spouse's SSN with a transposed digit on the state return but not the federal. The crazy thing is that TurboTax pulls the same information for both returns, but somehow I had manually "corrected" something that wasn't wrong on the state side. Before you mail in your paper return, try this: go through every single field on your state return and compare it character by character with your federal return AND with the original source documents (W-2s, 1099s, etc.). Pay special attention to SSNs, dates, and any dollar amounts. Sometimes it's the tiniest typo that causes the rejection. Also, if you do end up calling the state, ask them specifically for the "reject reason code" - not just a general explanation. The codes are usually much more specific than what customer service initially tells you, and you can often find the exact meaning by searching online for "[your state] tax reject code [number]". Good luck! I know how frustrating this is, but there's definitely a solution once you find that one little error that's causing the problem.

I've been following this thread and wanted to add one more potential cause that hasn't been mentioned yet - estimated tax payments. If you made quarterly estimated payments to your state but not federal (or vice versa), this can sometimes cause validation issues between the two systems. I had a similar federal-accepted/state-rejected situation last year, and it turned out that I had entered my estimated tax payments on the federal return but TurboTax didn't properly transfer that information to the state return. The state system flagged it as a discrepancy because they had record of my quarterly payments but my return showed zero estimated payments made. Also, if you moved during the tax year, double-check that you're filing with the correct state and that all your address information is consistent. Some people accidentally file their state return with their old state if they moved late in the year, which will get rejected immediately. The reject code from calling the state really is your best bet for getting to the bottom of this quickly. Once you have that specific code, you can usually find the exact fix online instead of guessing what might be wrong.

I just went through this exact scenario last month with my Ohio return! After reading through all these helpful suggestions, I want to add one more thing that might help - check if your state requires any additional forms that weren't automatically generated by TurboTax. In my case, I had some freelance income that required a specific Ohio form (IT 1040EZ wasn't enough), but TurboTax only prepared the basic state return. The federal return processed fine because the IRS doesn't require the same state-specific documentation. When I called Ohio (early morning like others suggested - got through in 20 minutes!), they told me the rejection code indicated a "missing required schedule." I had to go back into TurboTax, specifically look for Ohio-only forms and schedules, and found there was an additional business income form I needed to complete. Once I added that and mailed in the paper return with all the correct forms, it went through without any issues. So definitely get that specific reject code when you call Michigan, but also ask if there are any state-specific forms you might be missing. Sometimes the software doesn't catch every requirement that individual states have, especially if you have income from multiple sources. Good luck - you'll get through this!

Reading through all these experiences, I'm really impressed by how helpful everyone has been! As someone who works in tax preparation, I want to add a few professional tips that might save you some time: First, before calling Michigan, try logging into their MILogin portal if you have an account. Sometimes they post rejection details there that don't show up in TurboTax. Look for any messages or alerts on your account dashboard. Second, when you do call and get that reject code, ask the representative to read you the exact error message word-for-word, not just their interpretation. Sometimes the actual system message contains crucial details that get lost in translation. Third, if it turns out to be a simple data entry error, you might not need to mail a paper return at all. Some states allow you to make corrections and resubmit electronically after a certain waiting period (usually 24-48 hours). Michigan specifically allows this for certain types of corrections. One last thing - if you do find the error and fix it, double-check that you're not accidentally creating a new problem. I've seen people fix one field but then introduce a new error in the process. Take your time with any corrections. The reject code will tell you exactly what to look for, but having a systematic approach will help ensure you don't miss anything. Good luck getting it resolved!