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Why does Federal rejection cause State rejection?

PATAX
Level 15

First rejection in two or three years I believe. Taxpayers wife had child so she stopped working full time, and her health insurance was cut by her employer so they went through the exchange. Taxpayer never brought the form in and I had no idea they were on The Exchange. Of course the return was rejected by the IRS, but why was Pennsylvania rejected when the 1095-A has nothing to do with Pennsylvania?

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Accepted Solutions
TiredFarmer
Level 7

At one time pro series said that any rejection caused by marketplace insurance caused a rejection to all state returns associated with that 1040.  They also said you could unmark the federal for e-file and e-file the state.  I just waited for them to bring me the form and submitted all at once.

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12 Comments 12
IRonMaN
Level 15

If the federal doesn't clear, the state processing is killed off no matter what the reason is for the federal.

I'm glad you have had more luck than me as far as rejections.  There were some bugs early on the caused some issues with my early MN returns.  I've had a couple of those returns like yours that people jumped into the Marketplace and didn't think the 1095A was important for taxes.  I have also had three returns bounced because of IP PIN issues.  Plus my token Iowa return got kicked back because ProSeries put them in limbo.  And of course there is always one return that bounces because the other parent wasn't supposed to claim a kid, but they did anyway.  And I'm sure I had at least a couple of others bounce for miscellaneous reasons.


Slava Ukraini!
TiredFarmer
Level 7

At one time pro series said that any rejection caused by marketplace insurance caused a rejection to all state returns associated with that 1040.  They also said you could unmark the federal for e-file and e-file the state.  I just waited for them to bring me the form and submitted all at once.

Jim-from-Ohio
Level 11

it has been a pretty rejection free year so far.. only had a few out of well over 1,000 returns. and all but one has been fixed.. last few days though been seeing a few more rejections... PINs on some and the dreaded "another return has already been filed wtih the SS#"

PATAX
Level 15

@IRonMaN👍 thanks for that information. I'm sure you do a lot more returns than me and that is why you have a few more rejections. I don't do that many returns, but it seems like every return almost that I do takes a lot of time. Might be time for early retirement. @TiredFarmer 👍thanks for that information. That's what I'm going to do, I'm going to wait to get the form and then Re efile both the federal and the state.

Just-Lisa-Now-
Level 15
Level 15

PA is a semi piggyback state, meaning you can file it alone but it wont be processed until a federal return is filed as well...so it makes sense for PS to bounce them both back when the fed is rejected.

https://accountants.intuit.com/support/en-us/help-article/electronic-filing/state-e-file-methods-sta...

PiggyBack/State-only return:

The state return can be processed independently of the federal return. It's a common misconception that these returns aren't sent to the IRS—they are. However, the IRS sets aside these returns for processing by the states, in most cases, prior to acceptance of the federal return or the federal return being e-filed.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
PATAX
Level 15

@Jim-from-Ohio you do a lot of returns Jim and that's why you have a few more rejections. When Lisa gave that link last year so we could see how many returns were done by ZIP code, I saw that other preparers had a lot of rejections, but they did more returns.

Just-Lisa-Now-
Level 15
Level 15

@PATAX wrote:

@Jim-from-Ohio you do a lot of returns Jim and that's why you have a few more rejections. When Lisa gave that link last year so we could see how many returns were done by ZIP code, I saw that other preparers had a lot of rejections, but they did more returns.


was it this link?  kinda fun to see what the competition is doing.
https://dashboard.refundo.com/2023/ext/?fbclid=IwAR0W3z90ftMlz1iU60VzIm-u7-g0zBTayEkVQv8mbz6Mc52p5el...


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Just-Lisa-Now-
Level 15
Level 15

you can change the year in that address to see more current info

I was ranked 13 in my zipcode last year, Im 9 now in number of returns prepared.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
PATAX
Level 15

@Just-Lisa-Now- yep that's the link and it is great. I hope they update it.

Jim-from-Ohio
Level 11

i am waiting to see the 2024 season (2023 tax season).  below is the refundo link posted with my zip code and city already populated...  2023 season, (2022 tax returns.)..  I had 97% approval rate on 1,603 returns.. and I still don't totally believe that.. unresolved rejections that I totally unresolved was only like three maybe. here is the link: I rank # 2 and the only firm that has more returns than me has a entire staff of people. I am doing all these returns with zero staff. 

https://dashboard.refundo.com/2023/ext/?fbclid=IwAR1wqzXZGNt5rSVjYqjSaqEfhdKjRFBurMoK2trFCskcGsfzWbg...

IRonMaN
Level 15

I had a new twist this year on rejections.  Long time client got married a couple of years ago.  His stepdaughter graduated from college in 2023 and was out on her own.  I filed her return and it got rejected because she was claimed as a dependent on someone else's return.  Client's wife calls up the ex and asked why he claimed their daughter.  He gets pissed and says that he hasn't claimed her in years.  Well, he thinks he hadn't claimed her in years, but the tax preparer wasn't following the same playbook and had been claiming her for years.  Another classic case of someone closely reviewing their return each year 😬


Slava Ukraini!
Just-Lisa-Now-
Level 15
Level 15

Ive got 95%, it shows way more rejections that I remember having but I only had to paper file a few returns, so I guess the rejections were all fixed.  I just had one today that I had to send through 3 times, some stupid CA formatting error on an amended return, ok ok ok, I'll uncheck that one unrelated checkbox, if that makes it happy, geez!


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪