Error when "checking" return

[ajuroff]

Have a client - single, no children. He received unemployment in the amount of $2312.00.

None of this would be taxable so line 19 is zero. He did have federal tax withheld in the amount

of $172.00. He has some interest from a savings account in the amount of $89.00.

When clicking the "check return" button, I get a red error stating:

Error: Irs Exclusion: Tax withheld must be less than the sum of wages, taxable interest, ordinary

dividends, ....etc" You get the idea.

Can this guy not e-file because his adjusted gross income is $89.00 but his federal tax withheld

was $172.00, which is more than the sum of wages, taxable interest, etc?

Never had this before.

Thanks!

[michaelmars]

ITS PRobably because you have unempl withholding greater than the taxable amount - not because of agi

[ajuroff]

ITS PRobably because you have unempl withholding greater than the taxable amount - not because of agi

Yeah, exactly. So he won't be able to efile because of this, correct?

[ljwalters]

That seems to be the case.

[kcjenkins]

Yep, he got caught in a trap the IRS set up several years ago to stop fraud. Some crooks were preparing bogus W-2's showing modest income with most or all of it as FIT w/h, thereby getting refunds of all the 'withholdings'. This got to be a significant scam, so the IRS decided when any return shows a W2 or other form with more w-h than the taxable income, they want to look at the return, and verify the W-2 or other form is legit.

[Don in Upstate NY]

Yep, he got caught in a trap the IRS set up several years ago to stop fraud. Some crooks were preparing bogus W-2's showing modest income with most or all of it as FIT w/h, thereby getting refunds of all the 'withholdings'. This got to be a significant scam, so the IRS decided when any return shows a W2 or other form with more w-h than the taxable income, they want to look at the return, and verify the W-2 or other form is legit.

That's why I couldn't e-file this one ... My W2