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PATAX
Level 12
April 2, 2024
Solved

Why does Federal rejection cause State rejection?

  • April 2, 2024
  • 4 replies
  • 18 views

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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Best answer by TiredFarmer

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.

4 replies

IRonMaN
Level 15
April 3, 2024

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!
Level 6
April 3, 2024

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
Intuit Community Champion
April 3, 2024

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
PATAXAuthor
Level 12
April 3, 2024

@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.

PATAX
PATAXAuthor
Level 12
April 3, 2024

@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-
Intuit Community Champion
April 3, 2024

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-standalone-vs-piggyback/L11dxp3xr_US_en_US

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♥¸¸.•*¨*•♫♪