I have one client who is a US citizen, whose returns have been e-filed through ProConnect since 2016. But this time, when I finished his return, I saw one "Critical Diagnostic" which says, "At least one of the following fields must be present on an e-file return: total Income, adjusted gross income, tax on income, total credits, total tax or total payments."
In his case, he works and lives in a foreign country, where he earns his wages, for which I used Form 2555 "Foreign Earned income exclusion" which flows into Schedule 1, as "Foreign Earned Income Excluded."
As a result, Form 1040 doesn't have "Total Income" or "Adjusted Gross Income" or "Tax on Income" etc. His wage, which was less than the threashold for exclusion, was completely excluded, resulting in "zero" total income.
Is there anyone who has the same experience of having this irrelevant "Critical Diagnostic" on an individual income tax return?
Do you think I can ignore this diagnostic? There is a warning that ignoring makes the return ineligible for e-filing. I have never had this issue before, since I started e-filing this client's tax return since 2016.
Since he is in a foreign country, paper-filing is out of question.
Any helpful answer is appreciated.
Go ahead and override the diagnostic. It's not supposed to prevent you from e-filing:
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