Critical Efile diagnostics

[FCPA]

Form 1040/1040SR Reject: The IRS requires the total withholding amount on Form 1040 to be less than the total of the following income: Total amount from Form(s) W-2, Box 1 + Tip income not reported on Form 1040, line 1a + Taxable Interest + Ordinary Dividends + IRA Distributions + Pensions and Annuities + Total Social Security Benefits + Unemployment Compensation + Schedule 1, Total Other Income + Gross Receipts or Sales on all Schedule Cs. Please search '1040 withholding' in the Search ProConnect Tax bar above for more information. US - Ref #20063

[IRonMaN]

So, is the withholding less?

[FCPA]

Withholding is more

[IRonMaN]

How does someone end up with more withholding than their income?

[George4Tacks]

If true, the return needs to be mailed, with all withholding forms attached. Go to Profile and remove the check mark for e-file. Be sure to give the client a large envelope for mailing to the correct address.

[FCPA]

because they had a large NOL carryforward that wiped out all income.

[IRonMaN]

Paper file, but remember to limit the NOL appropriately.

[lisa12]

if the nol is limited to 80% of taxable income for the year why can't the return be efiled. I have the same situation and I've always been able to efile. I've never received this error?

[lisa12]

Also this is the first year this client had W2 wages with a federal withholding amount. Maybe that is causing the e-file error message?

[George4Tacks]

Is the AGI zero? No taxable income, so no e-file! Override the total NOL to net $1 taxable income and see what happens.