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Why can we track only so many objects? We addressed this question by asking when and how tracking errors emerge. To test the hypothesis that many tracking errors are target/nontarget confusions emerging from close encounters, we compared standard multiple-object tracking trials with trials on which a nontarget turned a random color whenever it approached within 4° of a target. This manipulation significantly improved performance by alleviating the correspondence challenge of a close encounter. Two control experiments showed that color change benefits were not merely due to target recovery. Follow-up experiments demonstrated that color change benefits did not accrue monotonically with distance but, instead, seemed to obey a step function; and an additional experiment demonstrated that, without color changes, the frequency of close encounters predicts tracking performance. Taken together …