Form 1040 Line 70 e-file error message

[David]

TP is getting a credit for taxes paid in 2006 for worker's comp payments received in 2006 but paid back in 2007. The instructions say to enter the credit on line 70 with the statement off to the side "IRC 1341".

The ATX program seems to be treating this correctly and does include the IRC 1341 reference.

However, I get an e-file error saying that the tax on line 70 must equal the total of tax paid from form 2439, form 4136 or form 8885. None of these forms apply. Furthermore, the ATX program line 70 input detail has an input line that says IRC section 1341 credit".

Does anyone know what I need to do to get rid of the e-file error message so I can e-file the tax return?

Thanks.

[jainen]

>>what I need to do to get rid of the e-file error message<<

Simply delete the credit entirely. Since worker's comp payments are not taxable, repayment is not deductible.

[David]

>>what I need to do to get rid of the e-file error message<<

Simply delete the credit entirely. Since worker's comp payments are not taxable, repayment is not deductible.

Sorry, I meant disability payments. He was taxed on these payments in past years and paid back a portion of the disability payments after social security started paying him.

Thanks.

[jainen]

>> I meant disability payments<<

Sorry, I should have recognized it as a software question. Hopefully someone else can cover it, otherwise check your help file or call tech support.

[David]

>> I meant disability payments<<

Sorry, I should have recognized it as a software question. Hopefully someone else can cover it, otherwise check your help file or call tech support.

Thanks, but I haven't had much luck with tech support. I am still waiting for them to get back to me on two different issues from months ago.

[David1980]

Thanks, but I haven't had much luck with tech support. I am still waiting for them to get back to me on two different issues from months ago.

You're looking at an e-file error, not a tax prep error. If you have an IRC 1341 credit on the return you cannot efile that return. IRS issue, nobody can e-file that, so ATX support won't be able to help you get that one through electronically.

The relevant IRS rejection code if you're interested is code 0426.

[David]

You're looking at an e-file error, not a tax prep error. If you have an IRC 1341 credit on the return you cannot efile that return. IRS issue, nobody can e-file that, so ATX support won't be able to help you get that one through electronically.

The relevant IRS rejection code if you're interested is code 0426.

Thanks. Why does a return with an IRC 1341 have to be paper filed? I wonder why the error message didn't tell me that it was not allowed to be e-filed? Instead the message just said that the amount on line 70 had to match the amount on one of the 3 forms.

Thanks for your help.

[David1980]

Thanks. Why does a return with an IRC 1341 have to be paper filed? I wonder why the error message didn't tell me that it was not allowed to be e-filed? Instead the message just said that the amount on line 70 had to match the amount on one of the 3 forms.

Thanks for your help.

As far as why I have no idea. There are just some things the IRS won't accept (ever list a child as "stepson" or "stepdaughter"? Same problem.)

As far as the error message, I agree with you 110%. E-file specific error messages should identify themselves as such, and it seems like they never do. You get an error and assume there's a calculation or a mistake on the return when in fact the return is fine, just can't be efiled. All you can really do is complain and hope enough complain to get it changed. :(