UC withholding, tax withheld, but no other income

[Janitor Bob]

Dependent client's only income in 2020 was 2,646 UC....$252 Fed tax withheld.  E-file rejects (F1040-071-05).  Does it need to be paper filed?

[Lee B]

Yes, or you need to show $ 252 of Income in addition to the UC in order for it to efile.

[Catherine]

Add in $1 of interest income, and see if that works.  I run into this all the time with foreign-dwelling clients 100% of whose income is excluded with FEC.  If there is no taxable income (before deductions) you cannot e-file.  Add in that $1 of bank interest, not excluded under FEC - and bingo you can e-file.  Very important tactic, especially for those clients living in countries where the mail service is nearly guaranteed to be pathetic at best.  (Australia, most of South America, central/eastern Europe, some Asian countries - send a tax return in from there, by mail, and it's nearly 100% guaranteed never to arrive.)

[Lee B]

In this case $ 1 will not be enough

[Janitor Bob]

I simply decreased the UC credit on Sch 1 to get to a zero (non-negative) income.....then sucessfully e-filed