Individual Diagnostic Ref. 20063 IRS Requires the Withholding Amount on Form 1040

Forum|Forum|5 years ago
April 6, 2021
1 reply
19 views

I have withholding on a 1099R but overall net operation loss on return. Can't find any additional reference on what is income for this diagnostic to be telling me I should paper file. I'm thinking of overriding the diagnostic and e-filing anyway but wondering if anyone has seen this.

Lacerte Tax

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TylorValdez1

Level 6

his diagnostic was added to prevent e-file reject F1040-071-03 that occurs when total withholding on Form 1040 is less than the total of specific categories of income. You will need to paper file the return.

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LindaSkiAuthor

Level 3

Ii don't think that's my question. If I enter a negative $300,000 on Sch C and have a negative AGI the diagnostic goes away. It recognize that I have a 1099R with $125,000 gross and $25,000 withholding and have a negative AGI and thinks everything is find. Which it always has been in prior year.

My negative $300,000 is coming from a net operating loss from a Form 1041. Then I get this message. The diagnostic says income categories. Somehow the program is differentiating between a net loss from Sch C and from Sch K-1 for the same type of loss.

There should be a way around this.

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TylorValdez1

Level 6

There is not a way. The NOL is the root cause. I have seen this a few times with different customers.

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