ProConnect HelpIntuit HelpIntuit

How to resolve Lacerte Diagnostic Ref. 20063 - IRS requires the withholding amount on Form 1040

SOLVEDby IntuitLacerte Tax38Updated August 20, 2021

This article will help resolve the following e-file critical diagnostic that 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. (ref. #20063)"

This diagnostic will generate on returns when the amount of federal income tax withheld is greater than the total of certain types of income. It was added to prevent e-file reject F1040-071-03 from occurring.

If you've already entered all of the client's income and this diagnostic persists, the e-filed return will likely be rejected by the IRS. This doesn't mean that the return as prepared is incorrect.

To paper-file the client's return:

  • Go to Screen 1, Client Information.
  • Deselect the Federal box in the Electronic return subsection.
    • This will suppress the diagnostic and update your client correspondence with the appropriate instructions for mailing the return.

To force e-filing (not recommended):

If you believe this diagnostic doesn't apply, you can disable the e-file diagnostic error checking, to transmit the return to the IRS. However, if the return is rejected, you'll need to paper file. To disable the diagnostic, refer to Disabling E-file Diagnostic Error Checking.

Requirements for filing Form 8948

The form instructions indicate that Form 8948, Preparer Explanation for Not Filing Electronically, isn't required when covered returns can't be e-filed because they're not currently capable of being accepted by the IRS.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.