Tax Return Rejected Code: SA-F1040-025

[arma2310]

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??

[Just-Lisa-Now-]

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

[arma2310]

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-]

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

How much in losses are you claiming on Sch A?

[arma2310]

$ 10,328.00 Other Income Schedule 1 Line 8 Gambling Winnings 

$ 10,327.00 Other Itemized deduction Line 16 Other "Gambling Losses"

[Just-Lisa-Now-]

Did you enter the gambling winnings on the W2G worksheets?    If you just entered them as Other Income that may be whats tripping it up.

[arma2310]

I think is a technical issue and I do not know how to fit that. I did it in the same manner that I Have been done for ever, I have never have this issue before.

[beancounter1018]

I received the same rejection code today.  Same situation.  Gambling winnings entered via W-2G of $7504.  Gambling losses entered on Schedule A Miscellaneous Deductions of $7504.

[Just-Lisa-Now-]

On another post someone said the resubmitted, didnt change anything and then it was accepted.

[arma2310]

Yes, I waited a day, I installed the Proseries updates and after that I transmitted again the returns without any change and they were accepted this time, .

[MargeF32]

Can someone help please.  I am having this same problem you all discussed back in February.  I've done all suggested in your thread and nothing is working.  I have had several clients that have itemized and deducted gambling losses to the extent of winnings throughout tax season and never had this problem before.

[Just-Lisa-Now-]

Id try closing ProSeries then use REPAIR Updates from the Windows programs menu under the PS2020 menu heading....see if that helps at all.

[MargeF32]

Thanks but that did not work.  

[Just-Lisa-Now-]

So youre getting the same IRS rejection as shown in the original post? Or youre getting an error that wont even let you transmit to the IRS?

You have the gambling winnings entered as a W2G?

[MargeF32]

I am getting an error that stops the return from being transmitted to the IRS.  Yes I'm getting the same error as the original post.  Winnings are posted under W2G.  

[Just-Lisa-Now-]

Ok, the original post was an IRS rejection, not an error that stopped if from being Efiled.

Youre saying when you hit the Review button on the toolbar and run through it, youve got a Red screen that tells you it cant be Efiled?

[marissa2c]

Hi,

Getting the same SA-F1040-025 efile rejection even though gambling losses are equal or less than gambling winnings.  Did not have this problem with other tax returns earlier in the year.  Please investigate and fix!

Thanks.

[Just-Lisa-Now-]

@IntuitGabi can you look into this problem?  It seems to have been an issue back early in the season but was fixed, now its back.

[IntuitGabi]

Sure! Let me look into this. 

[IntuitGabi]

@marissa2c Checking in..were you able to e-file? 

[SMartinOK]

No!!!  
I'm still having this issue on several of my clients gambling losses equal or less than winnings.

[Terry53029]

Try putting the losses on schedule 1 right after gambling winnings which should have carried to  line 8 from w2g's.

[Just-Lisa-Now-]

Don't losses go on Sch A?

[Terry53029]

@Just-Lisa-Now- if client itemizes, yes normally, but if there is an issue with proseries doubt if irs would catch it. and if they do as long as client is itemizing it would be legit. I have a couple of clients that have winnings and do not itemize, but it is "Per-Session" gambling losses which you can put on schedule 1.

See notice 2015-21 

[Just-Lisa-Now-]

the requirement to maintain accurate records of individual sessions isnt something the majority of people with gambling winnings complete.

[crawman15]

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!

[crawman15]

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]

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