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Federal return rejected: Self-Employed Health Insurance Deduction on Schedule 1: Additional Income and Adjustments to Income

Forum|Forum|5 years ago
April 11, 2021
10 replies
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Filed my federal return on the 8th, got a rejection notification today for an issue with Self-Employed Health Insurance Deduction on Schedule 1: Additional Income and Adjustments to Income. When I login to my account to fix, it gives me this message:

Let's take a look at your return

Description of error:

Your federal return was rejected due to an issue with Self-Employed Health Insurance Deduction on Schedule 1: Additional Income and Adjustments to Income

What needs to be done:

ACTION NEEDED: Important Information About Your Federal Tax Return Updates to the Self-Employed Health and Long-Term Care Insurance Deduction Worksheet are estimated to be completed by 4/30/21. What do I do now? If you're using a CD or downloaded version of TurboTax: When these updates are completed, update TurboTax (visit our Support Site if you need help updating) Please review your answers under the topic of the Affordable Care Act under Medical in Deduction and Credits. Make any corrections if prompted E-file your return (you won't be charged for e-filing) If you're using the online version: When these updates are completed, log into your TurboTax Online account Please review your answers under the topic of the Affordable Care Act under Medical in Deduction and Credits. Make any corrections if prompted E-file your return (you won't be charged) We apologize for any inconvenience. Thank you for using TurboTax!

So I just have to wait for Turbo Tax to fix this form? How the hell was I able to file and why was this not caught in the federal review process before filing? And it won't be fixed until the 30th??? I get this year has been a cluster with the new laws, but it seems bananas this will only be fixed 17 days before the tax deadline.

TurboTax Self Employed Online

Best answer by Kat11_2

I'm sorry, but you are exactly right. Based on the message you so thoroughly shared, this issue has been identified by TurboTax as a "bug" that will be fixed on April 30th. This year, I had a similar rejection notice (never received one before) and had to wait until 2 days ago for the fix. At that point, I was able to successfully e-file without any issue.

I'm sure that the extended deadline has allowed TurboTax to take a little more time to fix these issues. If this is the only issue you have with your rejected return, you should be able to file after the 30th without a glitch.

Best of luck!

Kat11_2Answer

Employee

I'm sorry, but you are exactly right. Based on the message you so thoroughly shared, this issue has been identified by TurboTax as a "bug" that will be fixed on April 30th. This year, I had a similar rejection notice (never received one before) and had to wait until 2 days ago for the fix. At that point, I was able to successfully e-file without any issue.

I'm sure that the extended deadline has allowed TurboTax to take a little more time to fix these issues. If this is the only issue you have with your rejected return, you should be able to file after the 30th without a glitch.

Best of luck!

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

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Laura22334455

Same situation here. Questions for Turbo Tax: how will we know that the software update has been completed? (As others have said, Turbo Tax doesn't tell you anymore WHAT updates are being installed.) Will there be some sort of prompt once we open our return indicating that the update is complete and what actions we need to take? And finally, is there any way we can manually make adjustments and re-file instead of waiting for the software update?

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TracyYang

Is there any update on this issue? I just got reject notice and do not know what to do.

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dan_e_tAuthor

I haven't gotten an update. I'm just sitting tight until the 30th. Hopefully I'll hear sooner.

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Lorganized

I just received the exact same rejection notice on 4/14/21 and tried calling TurboTax and they had no explanation or answer. I agree with you fully, how did it allow us to get through the check for errors and submit it? I had also filed 2 state returns which were rejected as well simply because the federal was rejected. One was for Arizona which had a deadline of 4/15/21, however I just double-checked and as of last week the Governor extended it to 5/17, whew! I am due a significant refund which is needed and am VERY disappointed I am going to have to wait several weeks for TurboTax to update their software before I can refile it again!

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dan_e_tAuthor

Ditto! Normally I don't necessarily care to file super early, but I too am getting a large refund and am anxious to have my money back! Paying quarterly taxes estimated on the finances of the prior year makes no sense to me.

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JeanneLO

Employee

This has been identified by our TurboTax team and the estimated date for an update to the software in order for you to successfully e-file is April 30, 2021.

@dan_e_t

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Slew

Same deal. I'm not shocked. I can always estimate the bottom line via TurboTax, within tight range. This is the first time it erred significantly. The error was in my favor and health care was the area. It looked so bizarre I carefully inputted and checked everything again twice more, expecting the meter to run away against me, by at least $500.

It did not. I was so surprised I mentioned it to several friends and relatives, that I couldn't believe how comparatively favorable my taxes were this year, specifically due to the health care variable. Prior to rejection I had already taken the bonus cash and bought more shares of one of my stocks, plus paid off a credit card.

Now I fully expect the meter will run away upon the April 30 (or whenever) update. I don't think information will have to be changed. I suspect there was a form/calculation error in TurboTax and the government caught it. Once the update is installed and TurboTax opens I think the meter will immediately indeed run away, although I'll certainly go through that section to verify numbers again.

Disappointing, but everything has a confidence level and margin for error. One mistake by TurboTax was probably overdue in the big picture.

Kat11_2

Employee

For what it's worth, I'll share my experience with my (first ever) rejection notice here.

Once the update had been applied, all I had to do was re-transmit my return(s). I had an "Accepted" email within 5 minutes. I will say, though, that the update that fixed my issue wasn't released until late in the evening on the promised date. That said, you may want to wait until the following day (in this case, May 1) to re-submit your rejected return.

Here's hoping that this update will make your re-submission smooth as silk. By the way, TurboTax decided a year or two ago to no longer release the content of the updates. I'm not sure of the logic, but it's my understanding that this policy will remain in force.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

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ScottAMed

I've had the same issue. I would think thousands of people have had this issue, too, so am disappointed that it's taking until April 30th to resolve!

One note of warning: the error is probably making our returns seem better than they actually are. I did a first round of my taxes on TT in early March just to see where I stood and it looked like I owed some Fed money. Then last week when I went to complete and file, so I updated TT and suddenly it looked like the Fed owed ME money. I was surprised by that change. Now that my filing has been rejected, I'm suspecting that the glitch in this Self-Employment Schedule 1 is likely what is making it look like I'm getting money back but in reality I likely owe money. So, budget accordingly!

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zacknauth

I don't know how dramatic it's going to be for people, but I can see for my return, the self employed health insurance deduction has been overestimated by a couple thousand dollars, which would reduce my refund by about $300. On the other hand, it is still showing advance premium tax credit owed, which should be eliminated in the new tax law.

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TracyYang

I hope my input could help more. Please review all the entries in your form. I accidentally spotted some unfamiliar entries which I guess were automatically populated by Turbotax. So I erased all the things and redo. I made sure I did not have those unknown entries. my return was accepted by Federal.

Good luck to all!

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smithscl

Can you clarify what specific areas popped up that were incorrectly populated by Turbotax? I can't seem to find anything unusual.

Thanks.

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TracyYang

I had sales tax and business expense on my form and I did not know where it was coming from. I did end up with paying like 300 bucks more, but at this point, I really just want to get it done.

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lordmuggins

I see this is marked as "Resolved". Do we know if it has been? I do see there have been a few TT updates; and with one I tried to resubmit and was rejected again. I don't want to keep trying if it'll continue to be rejected. For me, the State deadline to file has already passed...

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dan_e_tAuthor

When you mark an answer as the best answer, the system automatically says the issue is revolved. I guess my question was answered, but the fix is still pending. Nothing to do but wait.

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BizFiler

I see an update was applied this morning when I checked, but TT is still giving me the "wait to file" button as the default, and saying that an update is still coming.

This is ridiculous. I've been using TT for my biz taxes for 10+ years, and never had this kind of problem, with virtually zero communication about it.

How about letting us know WTF is going on.

Longjohn0808

Employee

I would like to know why am getting rejected every time

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xmasbaby0

Employee

@Longjohn0808 E-filing is now closed so you cannot e-file. Print, sign, and mail your tax return.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses. Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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Marjovelgardner

I was never selfed employed I tired to amend my 2019 taxes on here but I don't think it's correct either , can u check that for n e pls.?

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xmasbaby0

Employee

@Marjovelgardner No one can check your tax return. No one else has access to your account or your tax return. What is the problem with your 2019 return that has you wanting to amend it? You mentioned not being self-employed. But if you just used the "Self-Employed" software, that is not a problem. That software can handle any type of income you received. It is not limited to only being used for self-employment income.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**