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error message regarding withholding reported on a 1099

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Why is Lacerte not processing a 1040 that has a withholding amount reported on a 1099?

 

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Level 15

@AlbertBillman Take a look at this article about this particular diagnostic: https://proconnect.intuit.com/community/individual/help/individual-diagnostic-ref-20063-irs-requires...

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Still an AllStar

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11 Replies 11
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Level 15
Level 15
What kind of 1099?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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1099-R

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Level 15
Please define "not processing". Are you getting some type of diagnostic error? If so, what does it say? Generally Lacerte processing 1099 withholding, but do look for NOTE in the input area for some limitations.

ex-AllStar
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e-file. The IRS requires the total withholding amount on Form 1040to be less than total of specific categories of income.

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Level 15

Sounds like the withholding is too large to pass this efile spec.


ex-AllStar
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Gross and taxable amounts are 11,025 withholding amount is 1,653.

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Level 15

@AlbertBillman Take a look at this article about this particular diagnostic: https://proconnect.intuit.com/community/individual/help/individual-diagnostic-ref-20063-irs-requires...

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Still an AllStar

View solution in original post

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where is it? I don't find the article.

 

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Level 15
Level 15

You cant click that link?

Individual Diagnostic Ref. 20063 IRS Requires the Withholding Amount on Form 1040

e-file: The IRS requires the total withholding amount on Form 1040 to be less than the total of specific categories of income. See More Info for income categories. (ref. #20063)

The following e-file critical diagnostic is generating for an individual return,

e-file: The IRS requires the total withholding amount on Form 1040 to be less than the total of specific categories of income. See More Info for income categories. (ref. #20063)

Solution

This diagnostic was added to prevent e-file reject F1040-071-03 from occurring.

Solution #1:

  • Please review the return for accuracy. If the diagnostic is accurate and the withholding is more than the total income we suggest paper filing the return to prevent an e-file reject.

Solution #2:

  • If you believe you are getting this e-file diagnostic in error you may disable the e-file diagnostic checking; however, if the return is rejected you will need to paper file.
  • Note:  disabling e-file error checking is not recommended when this diagnostic is triggered.

Frequently Asked Questions:

Q1. Do I have to file a form 8948 for this return?

A1. Form instructions indicate where covered returns cannot be electronically filed because of a business rule, a Form 8948 is not required to be filed. The Lacerte program contains an extensive number of diagnostics to prevent unneeded e-file rejects where possible.  Please refer to Generating Form 8949 Sales and Other Dispositions of Capital Assets for more information.

Q2. I filed a return like this in TY12 and previous years and it was accepted by the IRS.  What has changed?

A2. With the full implementation of IRS Modernized E-file beginning in TY12, additional business rules have been implemented by the agency with set conditions compared to the older IRS legacy system in TY11 and prior years.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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I would if the article would appear using this link.

 

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Level 15

@AlbertBillman The link works.  I just checked.  Apparently, it does with Lisa too.  You may like to check if your browser setting is not allowing the new tab to open or try another browser.  In any case, Lisa has reposted the content of the article.

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Still an AllStar