ajuroff Posted March 22, 2010 Report Share Posted March 22, 2010 Have a client - single, no children. He received unemployment in the amount of $2312.00. None of this would be taxable so line 19 is zero. He did have federal tax withheld in the amount of $172.00. He has some interest from a savings account in the amount of $89.00. When clicking the "check return" button, I get a red error stating: Error: Irs Exclusion: Tax withheld must be less than the sum of wages, taxable interest, ordinary dividends, ....etc" You get the idea. Can this guy not e-file because his adjusted gross income is $89.00 but his federal tax withheld was $172.00, which is more than the sum of wages, taxable interest, etc? Never had this before. Thanks! Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 22, 2010 Report Share Posted March 22, 2010 ITS PRobably because you have unempl withholding greater than the taxable amount - not because of agi Quote Link to comment Share on other sites More sharing options...
ajuroff Posted March 22, 2010 Author Report Share Posted March 22, 2010 ITS PRobably because you have unempl withholding greater than the taxable amount - not because of agi Yeah, exactly. So he won't be able to efile because of this, correct? Quote Link to comment Share on other sites More sharing options...
ljwalters Posted March 23, 2010 Report Share Posted March 23, 2010 That seems to be the case. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 23, 2010 Report Share Posted March 23, 2010 Yep, he got caught in a trap the IRS set up several years ago to stop fraud. Some crooks were preparing bogus W-2's showing modest income with most or all of it as FIT w/h, thereby getting refunds of all the 'withholdings'. This got to be a significant scam, so the IRS decided when any return shows a W2 or other form with more w-h than the taxable income, they want to look at the return, and verify the W-2 or other form is legit. Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted March 24, 2010 Report Share Posted March 24, 2010 Yep, he got caught in a trap the IRS set up several years ago to stop fraud. Some crooks were preparing bogus W-2's showing modest income with most or all of it as FIT w/h, thereby getting refunds of all the 'withholdings'. This got to be a significant scam, so the IRS decided when any return shows a W2 or other form with more w-h than the taxable income, they want to look at the return, and verify the W-2 or other form is legit. That's why I couldn't e-file this one ... My W2 Quote Link to comment Share on other sites More sharing options...
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