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Form 3903 e-file error when only for CA return

Level 4

Have a full year CA client with valid CA moving expenses and enter in 3903 amounts in moving expenses in Lacerte.  Getting a Fed error for e-filing and that I need to paper file Fed.  Nothing is entered but the expenses, no other boxes checked.  This should not be the case.  Anybody know if I am missing something or another programming oops?

 

Thanks in advance.

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Community Manager
Community Manager

Ok I'm back, 

@alan @Drphibes the issue is that the federal e-file requires the Armed forces checkbox to pass validation. California requires a copy of the Federal return in xml format and that it pass validation at their center. Since the Federal will always fail, and California always requires the Federal be attached and pass validation, a CA return with the 3903 will always fail. The federal schema was updated this year to require that checkbox, which is why you are seeing this and haven't had the issue in the past. 

Hope this helps clear up why you are required to paper file unlike prior years. 

-Betty Jo 

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15 Replies 15
Level 15

I believe what you are looking at is Informational Diagnostics. Simply check it off and go on. It is intended to be helpful, in the IRS does allow 3903 is some circumstances. 


ex-AllStar
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Level 4

I really wish people would try things before commenting.  Latest version of Lacerte, moving expenses (legit move within CA) with no boxes checked on the 3903 input screen.  When calc'd, gives a critical 3903 e-file Fed diagnostic saying the return must be paper filed due to the 3903.  This should not be a critical, it should be ignored for Federal and allowed for CA or give us a check box saying for state only or something.

Level 15

I did try this before commenting. I got a different result than you did. You can use Ctrl + L to open an e-mail with support to have them investigate what appears to be an unexpected behavior. You can attach a copy of the return for them to look at. 


ex-AllStar
Level 4

My partner in the business just replicated what I see.

 

 

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Level 15

Can you post a screen shot of what you see?


ex-AllStar
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Level 4

Here is the input and critical diagnostc20210215_133918.jpg 20210215_133941.jpg

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Level 4

Sorry, did not mean to have cursor on the informational Diag.  If you look in the critical Diag you will see it.

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Level 15

I agree, there is an "Unexpected Behavior." Send it off to Lacerte https://proconnect.intuit.com/community/accounting/help/sending-an-email-to-lacerte-support/00/4763

Maybe @IntuitBettyJo can let them know to expect it. 


ex-AllStar
Level 4

Thanks for you time,  will do.

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Community Manager
Community Manager

Hi there, 

So the 3903 is an interesting case for CA. The Federal does not allow the 3903 except in the case of being a military move — CA allows it otherwise.  The problem is that CA requires the federal return be included and pass validation. But, federal validation will fail if the 3903 is there without the "Armed forces move due to permanent change of station". So even if you send CA only, it will fail validation because of the required copy of the federal failing validation because that field isn't marked. That's why the diagnostic states you have to paper file.

Hope this helps clear it up.

-Betty Jo 

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Level 1

Hi Betty, 

 

Correct - however, in 2018 and 2019 Lacerte tax software, we were able to e-file form 3903 specifically for CA as CA DOES NOT conform to the IRS due to the TCJA and CA we can continue deducting moving expenses regardless of Armed Forces and as long as they move was 50 miles or more for work.... 

Level 4

Yes, CA still allows moving expenses that are work related and more than 50 miles.  The problem is the 2020 program is giving you a critical e-file error if you have moving expenses for CA.  Is this something that is going to get fixed or do we have to paper file.  Don't remember this happening for 2019.

Community Manager
Community Manager

Thanks for the clarification @Drphibes and @alan 

I will take this info back to the team and update you accordingly. 

-Betty Jo 

Community Manager
Community Manager

Ok I'm back, 

@alan @Drphibes the issue is that the federal e-file requires the Armed forces checkbox to pass validation. California requires a copy of the Federal return in xml format and that it pass validation at their center. Since the Federal will always fail, and California always requires the Federal be attached and pass validation, a CA return with the 3903 will always fail. The federal schema was updated this year to require that checkbox, which is why you are seeing this and haven't had the issue in the past. 

Hope this helps clear up why you are required to paper file unlike prior years. 

-Betty Jo 

View solution in original post

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Level 4

Well that sucks, really seems a check box for state only could have made this happen in the schema.

Thanks.