Level 4

Question

Problem E-Filing Form 1040 with $0 Taxable Income

Forum|Forum|2 years ago
January 22, 2024
6 replies
21 views

It looks like that I cannot e-file a Form 1040, because the taxable income is $0. However, on this Form 1040, there's earned income from Schedule C and unemployment benefits that are reported. In addition, the return shows a refund due that resulted from EITC, CTC and taxes paid on form 1099-G (unemployment). Can someone shed some light why this return cannot be e-filed just because the AGI has been absorbed by the standard deduction? Thank you.

Individual

This topic has been closed for replies.

dascpa

Level 11

Without reading your detail are you aware e-file for individuals hasn't opened yet. January 29th.

M

mtordjmanAuthor

Level 4

Yes, I am aware that e-file season opens on January 29th. Thanks.

A

ajcctax

Level 4

I tried a sample return with small amount of income from Schedule C and unemployment benefits, I found no problem of e-filling.

itonewbie

Level 15

Take a look at Section 4 of Rev. Proc. 2022-12 for what you need to enter for zero AGI filers.

---------------------------------------------------------------------------------Still an AllStar

Just-Lisa-Now-

Intuit Community Champion

What youve explained shouldnt be an EF issue...run through REVIEW and see what the diagnostics are telling you

Ohhhh, if the withholding exceeds the income on the return, you wont be able to EF the return.....but that doesnt sound like your issue, if Sch C has some earnings and youve got unemployment income as well.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

mtordjmanAuthor

Level 4

I believe the software systematically wouldn't accept to e-fille the 1040 (and state return) if the taxable income is $0. This is very odd because there's so many other moving parts, such as EITC, CTC, withholding taxes, refund on the return.

Just-Lisa-Now-

Intuit Community Champion

Returns with zero taxable income get Efiled all the time, its VERY common for elderly clients taxable income to be reduced to zero with their standard deduction. Its zero AGI returns that have issues. or withholding that exceeds AGI that cannot be EFiled.

Please run through the diagnostics in REVIEW and see what it tells you.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

J

JEA1123

Level 2

As a work around, I usually enter $1 on line 7.

M

mtordjmanAuthor

Level 4

As it stands, the Standard deduction exceeds the AGI by more than $1,500, therefore the taxable income is $0. Using $1 anywhere else on the 1040, as a work around, won't cut it.

M

mtordjmanAuthor

Level 4

I still cannot e-file a return which contains a basic Schedule C. I tried to zero-in on the problem. It appears to be Schedule C. I have no clue which forms or schedules cannot be e-filed. This is a basic and simple return. Any suggestions?

Just-Lisa-Now-

Intuit Community Champion

does it have self employed health insurance? I know there's a new form for that this year (7206) that isnt ready yet.

and other returns EF just fine or can you not EF any returns? if you cant EF any returns, be sure youve checked that PTIN verification box in Options > Preparer Info it will create a phantom error that you cant track down.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

M

mtordjmanAuthor

Level 4

Form 7206 is not required on the return that I am working on. Somehow, Schedule C (the simplest schedule C) is triggering the e-file problem. The bigger problem is that the software is not telling me which forms or schedules are the cause of the e-file problem.

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