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Level 2
February 13, 2020
Question

Tax Return Rejected Code: SA-F1040-025

  • February 13, 2020
  • 27 replies
  • 113 views

IRS is Rejecting a tax return for the Gambling Winnings deduction:

Detail If Schedule A(Form 1040) 'Other Miscellaneous Ded Amt' has a non-zero value, then 'OtherIncome Amt' in (OtherIncomeType Statement) with corresponding 'OtherIncomeLitCd' having the value 'Gambling Winnings" must be greater than or iqual to 'MiscellaneousDeductionAmt' in (OtherMiscDeductionsStmnt) with corresponding 'MiscellanbeousDeductionTypeDesc' having the value "Gambling Losses".

I think is a technical error of Proseries software because the amount on the Other deduction is the same as the Other Income.

Please anybody can help with this technical error??

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27 replies

Just-Lisa-Now-
Intuit Community Champion
February 13, 2020

Did you enter more losses than winnings that are shown on the W2G?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
arma2310Author
Level 2
February 13, 2020

This is the explanation:

Detail:

If Schedule A(Form 1040) 'Other Miscellaneous Ded Amt' has a non-zero value, then 'OtherIncome Amt' in (OtherIncomeType Statement) with corresponding 'OtherIncomeLitCd' having the value 'Gambling Winnings" must be greater than or iqual to 'MiscellaneousDeductionAmt' in (OtherMiscDeductionsStmnt) with corresponding 'MiscellanbeousDeductionTypeDesc' having the value "Gambling Losses".

 

and not, even I reduced the amount by $ 1.00 and was rejected again

Just-Lisa-Now-
Intuit Community Champion
February 13, 2020

Give us the scenario...how much in winnings is shown on the W2Gs? 

How much in losses are you claiming on Sch A?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 2
February 10, 2022

I've read the thread here and don't see a definitive root cause/resolution.  I'm now dealing with this same issue in 2022, and hoping someone can point me to resolution.  Thanks!

Level 2
February 11, 2022

Solution provided by a tax expert in the intuit community page (for Turbo Tax online):


It depends. I think I may have a solution for your dilemma. Before we begin though, delete your previous 1099-MISC entry into your program. To report.

  1. Federal>wages and income
  2. less common income>show more
  3. Miscellaneous Income, 1099-A, 1099-C>start
  4. Other reportable income>start
  5. Answer yes to the first screen
  6. Next will be a dialog box asking for the description of the income. Type in  1099-Misc for gambling winnings. Record the amount of income that is listed on the 1099-Misc.
  7. After you make this entry and press continue. This will take you to a summary screen. Here select add another miscellaneous Income Item
  8. Here you will first describe this as Gambling Losses that offset my Gambling winnings. You will enter this number as a negative number such as -xxxx.xx.  
  9. Caution do not enter an amount of gambling losses in excess of your winnings. Also, if you entered gambling losses elsewhere in your return like from a W2G, be careful not to duplicate these losses against other losses you may have already claimed. 
sjrcpa
Level 15
February 11, 2022

But - since when do gambling winnings get reported on 1099-MISC?

The more I know the more I don’t know.