e-file: The IRS requires the total withholding amount on Form 1040 to be less than the total of specific categories of income. See More Info for income categories. (ref. #20063)
The following e-file critical diagnostic is generating for an individual return,
e-file: The IRS requires the total withholding amount on Form 1040 to be less than the total of specific categories of income. See More Info for income categories. (ref. #20063)
Solution
This diagnostic was added to prevent e-file reject F1040-071-03 from occurring.
Solution #1:
- Please review the return for accuracy. If the diagnostic is accurate and the withholding is more than the total income we suggest paper filing the return to prevent an e-file reject.
Solution #2:
- If you believe you are getting this e-file diagnostic in error you may disable the e-file diagnostic checking; however, if the return is rejected you will need to paper file.
- Note: disabling e-file error checking is not recommended when this diagnostic is triggered.
Frequently Asked Questions:
Q1. Do I have to file a form 8948 for this return?
A1. Form instructions indicate where covered returns cannot be electronically filed because of a business rule, a Form 8948 is not required to be filed. The Lacerte program contains an extensive number of diagnostics to prevent unneeded e-file rejects where possible. Please refer to Generating Form 8949 Sales and Other Dispositions of Capital Assets for more information.
Q2. I filed a return like this in TY12 and previous years and it was accepted by the IRS. What has changed?
A2. With the full implementation of IRS Modernized E-file beginning in TY12, additional business rules have been implemented by the agency with set conditions compared to the older IRS legacy system in TY11 and prior years.
