I have withholding on a 1099R but overall net operation loss on return. Can't find any additional reference on what is income for this diagnostic to be telling me I should paper file. I'm thinking of overriding the diagnostic and e-filing anyway but wondering if anyone has seen this.
Ii don't think that's my question. If I enter a negative $300,000 on Sch C and have a negative AGI the diagnostic goes away. It recognize that I have a 1099R with $125,000 gross and $25,000 withholding and have a negative AGI and thinks everything is find. Which it always has been in prior year.
My negative $300,000 is coming from a net operating loss from a Form 1041. Then I get this message. The diagnostic says income categories. Somehow the program is differentiating between a net loss from Sch C and from Sch K-1 for the same type of loss.
There should be a way around this.
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.