Rejection Code: SC-F1040-023-01

Mary SASLLC · ‎04-15-2026

Hello,

Somebody please help. I have been getting this rejection code for a particular tax return. I have verified that there are no mis calculations in the return.

Actions taken: I have deleted all the two Schedule Cs and reentered it in- still rejected.

2. I have also created a business use of home with zero sqft for both business and the home. We do not have business use of home expenses on the tax return, neither did we have it in 2024 and 2023 so I am not sure where this is coming from and the client ahs been filing with us for a while now without this issue. Is anyone familiar with this and how to resolve it.

Error message: Each 'Net Profit Or Loss Amt' in Form 1040 Schedule C, must be equal to 'Tentative Profit Or Loss Amt' minus (-) 'Home Business Expense Amt'.

Solution: Each 'Net profit or (loss)' in Form 1040 Schedule C, must be equal to 'Tentative profit or (loss)' minus (-) 'Expenses for business use of your home'.

Code: SC-F1040-023-01

Kathi_at_Intuit · ‎04-16-2026

Hi @Mary SASLLC nice to see you in the Community and thanks for posting about the e-file rejection for Sch C passive losses. Development is actively working to fix this issue and updates will be provided to you via email.

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Kathi_at_Intuit · ‎04-16-2026

Hi @Mary SASLLC today's update includes the fix for this rejection. Please update your Lacerte and resubmit the returns.

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Mary SASLLC · ‎04-16-2026

Hello Kathi,

Thank you for the response. Please note that this error was on Proconnect tax online product not Lacerte. Please advise if an update has been done to Proconnect tax online. i would hate to submit and get another rejection. I have tried 4 times already.

Kathi_at_Intuit · ‎04-16-2026

Hi @Mary SASLLC Thanks so much for calling this out! Right before your post we posted on a Lacerte post. Apologize, for that. ProConnect runs on the same tax engine as Lacerte and usually if one is fixed the other is. We checked on this and ProConnect Tax was updated.

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