Reject Code F1040-071-07

[Jim Oh Bkkr]

I use Drake, and it says this:

Quote

Form 1040, 'WithholdingTaxAmt' must be less than the sum of the following: [ 'WagesAmt' and 'TipIncomeAmt' and 'TaxableInterestAmt' and 'OrdinaryDividendsAmt' and ('IRADistributionsAmt' or 'TaxableIRAAmt') and ( 'PensionsAnnuitiesAmt' or 'TotalTaxablePensionsAmt' ) and 'SocSecBnftAmt' and Schedule 1 (Form 1040), ( 'UnemploymentCompAmt' and 'TotalOtherIncomeAmt' ) and ( all Schedule C (Form 1040), 'TotalGrossReceiptsAmt' )] unless one of the following is true: (1) Form 1040, 'CapitalGainLossAmt' has a non-zero value; (2) Schedule 1 (Form 1040), 'OtherGainLossAmt' or 'RentalRealEstateIncomeLossAmt' or 'NetFarmProfitLossAmt' has a non-zero value; (3) Combat Pay has been excluded from wages.

I re-checked the return, it was accurate, and resent it.  Then it said the above, but added something about it being a known issue with the IRS (though it referenced Line 1g only, this return is Line 1h?).  That a correction will be made in early February.

I can't find any reference to F1040-071-07 to be able to check to see if/when the problem is corrected.  Any suggestions?

[jklcpa]

This was happening in earlier years also, and when I googled the error code I saw referenced back to 2019 and 2020 too.

The issue is that the withholding exceeds total income unless one of the other items you listed is true, otherwise the return must be paper filed.

One solution is to add $1 of cap gain or cap gain div, or one of the other items required to be true, to remove that error and be able to e-file.

[Jim Oh Bkkr]

Thanks Judy, I saw the same things you're saying for error code F1040-071-05, but not for F1040-071-07.  A subsequent "startpage" search found a Taxslayer help page that said - paper file.  But the Drake error page leads me to believe that once the IRS fixes the problem, it can be resubmitted.

The cap gain solution, (I saw), didn't make much sense.  It said to do as you suggested, but then also said to enter another $1 on one of the schedules - I assume to zero it out.

I just would like to see a place @ irs.gov that would address when this fix is/was made.

[jklcpa]

Yes, I saw the difference in the numbered codes, but the issue really seems to be the same thing with the withholding exceeding the total income. I think the only difference in the error codes is that the line numbers on the 1040 have changed since the "05" error was in use and was the reason I mentioned adding the $1.

 

[Jim Oh Bkkr]

28 minutes ago, jklcpa said:

difference in the error codes is that the line numbers on the 1040

This was my thinking also.  "Since the "post-card" fiasco left us all this blank space at the bottom, let's break out all the "wage" types on separate lines."  They just forgot to include the various w/h entries in the fix.

[Jim Oh Bkkr]

Just a follow up.  This finally went through yesterday, Feb 20.

[TexTaxToo]

Thanks for reporting that this is fixed!

You can find some issues like this in the first xml file at https://www.irs.gov/e-file-providers/known-issues-and-solutions, but it doesn't get updated very often - the last was Feb 1.  Your issue is on row 76.

[Jim Oh Bkkr]

This was the only thing I found, three weeks ago.  But nothing happened, and I tried several times to open.  Days later, I noticed several downloads of the same thing, didn't realize it was a download and not a "page".  No software I have would open a .xlsm file.   I finally found an online viewer last week, but as you said, it wasn't helpful.

[jklcpa]

4 hours ago, Jim Oh Bkkr said:

No software I have would open a .xlsm file.   I finally found an online viewer last week, but as you said, it wasn't helpful.

If you were on the same IRS page that TexTaxToo linked to above, those are .xlsx files that should open with MS Excel.  I'm surprised that your computer doesn't have a new enough version of Excel to open it. All I had to do was click on the download and it launched Excel automatically and the file opened.