It sure would be nice if TT would include tips in TT desktop for known issues. For example I had a return's e-file rejected due to AGI issues, yet I was sure last years 2020 AGI was correct. After several failed attempts I found that someone posted that if you filed by paper last year, use $0 for the 2020 AGI. This worked and was accepted. It would have been great to have this tip presented right in the TT desktop when it was asking me for this information.
Unfortunately, the IRS was backlogged in 2020 due to covid, which caused allot of 2020 returns to be processed late. That caused allot of returns to be rejected with the actual 2020 AGI. When returns are processed late, a Zero for the 2020 AGI works because in the IRS system is shows it was processed late.
TurboTax does not know any information about the processing of returns, so they would not know your return was processed late, so they cannot suggest to enter a Zero for the AGI. The IRS or State does not update TurboTax once your electronic returns are accepted.
It does fit the scenario, it does not matter if your return was mailed or e-filed in 2020. The IRS was backlogged processing 2020 returns, which again TurboTax has no idea of when your return was processed by the IRS. TurboTax or any other tax software would have no idea when your return was processed, so the program would not know to tell you to add a zero.
TurboTax can only ask how you filed in the prior year in order to enter the AGI. They still would not know you need to enter a zero because your return was processed late.
Unfortunately, the IRS was backlogged in 2020 due to covid, which caused allot of 2020 returns to be processed late. That caused allot of returns to be rejected with the actual 2020 AGI. When returns are processed late, a Zero for the 2020 AGI works because in the IRS system is shows it was processed late.
TurboTax does not know any information about the processing of returns, so they would not know your return was processed late, so they cannot suggest to enter a Zero for the AGI. The IRS or State does not update TurboTax once your electronic returns are accepted.
Yes, the Covid delay fits your scenario. But in this case the filing was paper last year (they owed money so delayed until the last minute), TT would know that the AGI must be $0 to be accepted, and should include a friendly note when asking this question to avoid the problem completely.
It does fit the scenario, it does not matter if your return was mailed or e-filed in 2020. The IRS was backlogged processing 2020 returns, which again TurboTax has no idea of when your return was processed by the IRS. TurboTax or any other tax software would have no idea when your return was processed, so the program would not know to tell you to add a zero.
TurboTax can only ask how you filed in the prior year in order to enter the AGI. They still would not know you need to enter a zero because your return was processed late.
And then TT should say "Enter your last year's AGI and if that e-file is rejected, return here and try using $0 for the AGI." It's that simple.
I am not going to go on with this, there is no tax software that is going to ask you that question.
I was a systems architect, detailed designer, and programmer for over 3 decades. I am certain that adding this text would be trivial and avoid people having this problem. A leading goal of any software is to make the customer experience as friendly as possible. Perhaps you didn't have the problem and cannot relate to the frustration.
Another related example is that TT asked for the taxpayer and spouse's AGI separately, knowing that last year was a joint return. This makes no sense (since there is only one AGI on a joint return) and just causes confusion. This too should be fixed. I call this lazy programming and I would have required my team to fix it immediately.