Have a full year CA client with valid CA moving expenses and enter in 3903 amounts in moving expenses in Lacerte. Getting a Fed error for e-filing and that I need to paper file Fed. Nothing is entered but the expenses, no other boxes checked. This should not be the case. Anybody know if I am missing something or another programming oops?
Thanks in advance.
Hi there,
So the 3903 is an interesting case for CA. The Federal does not allow the 3903 except in the case of being a military move — CA allows it otherwise. The problem is that CA requires the federal return be included and pass validation. But, federal validation will fail if the 3903 is there without the "Armed forces move due to permanent change of station". So even if you send CA only, it will fail validation because of the required copy of the federal failing validation because that field isn't marked. That's why the diagnostic states you have to paper file.
Hope this helps clear it up.
-Betty Jo
Ok I'm back,
@alan @Drphibes the issue is that the federal e-file requires the Armed forces checkbox to pass validation. California requires a copy of the Federal return in xml format and that it pass validation at their center. Since the Federal will always fail, and California always requires the Federal be attached and pass validation, a CA return with the 3903 will always fail. The federal schema was updated this year to require that checkbox, which is why you are seeing this and haven't had the issue in the past.
Hope this helps clear up why you are required to paper file unlike prior years.
-Betty Jo
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