2019 Federal Return Rejected due to Spouse AGI

[DaraLO]

@Julia1949 It could be that the SSA (Social Security Administration) placed a block on his social security number, and this is preventing the return from being accepted.  In this case, you will need to print your return and mail it.

Reference:  What if I entered the correct AGI and I’m still getting an ...  

[frustratedwidower]

I found a different thread on this forum with the same problem and only just saw this post.

My very elderly, widower father was very upset at the difficulty getting turbotax returns accepted by the IRS.  Three times they were rejected because of the error that the prior year agi was incorrect.  

Thanks to this forum and several members posting their solution to use freetaxusa instead, yes, that is a solution to be able to e-file and know that both federal and state returns are accepted.  

Although my father had to enter everything from scratch (previous years' tax returns all turbotax format) on the freetaxusa website, it was worth it when they were accepted promptly, which is the usual response when e-filing. The difference appears to be that freetaxusa asks for BOTH spouses' state ID information and the IRS wants both the deceased and surviving spouse's ID info to accept the returns. Turbotax never asked for my mother's ID info.  

Just FYI that we in the SF Bay Area are in mandatory lockdown and shelter-in-place orders (can only go out for essential medical and grocery needs)  to curb the Cov19 virus spread--it's currently through April 7th, but highly expected to last longer. Hence, it's not a recommended time for anyone to go out to the post office and file paper returns.

It's not necessary to file paper returns (and risk a "lost tax return" even with certified mailing--happened one time) if you try freetaxusa.  My father didn't like that it's only a website and not software to install, but the most important thing is that the tax returns are filed promptly and accepted.

Now I need to figure out how to get the $24.99 back from turbotax for the State e-filing that was rejected because I had to use freetaxusa.

[TiffanyL]

That would be something that you would want to reach out to TurboTax directly about, being as though your return was rejected. You can use the link provided below to contact TurboTax support:

TurboTax Customer Support

[dianalarose]

Thank you, TiffanyL. I also had to use FreeTaxUSA because of TT's bug that affects recently widowed taxpayers. I deserve a refund.

[779]

I've had the exact same problem here.  Attempts to adjust the AGI, sign in and out of the program, etc., haven't helped.  Repeated phone calls to TurboTax have resulted in hours of time on the phone while one Agent marks your issue "resolved" when it is NOT, and another claims to not be able to help and asks you to call in and possibly get help from another Agent.  We've used TurboTax for some years, but maybe it's time for a change.

[ralph413]

I also wasted a lot of time with 3 different agents and was always given the wrong information. The last person told me to call the IRS and the will fix it while on the phone, which when I told the IRS person that she laughed and said "wow they are making promises at turbo tax they can't keep". Bottom line I spoke to a real tax CPA and she told me since my wife passed away in 2019 her Social Security card is frozen so when the IRS tries to cross reference it to the 1040 it automatically rejects it. Only was is to mail it in this year. Also I agree been using Turbo Tax for years no problem but the one time I needed their help NG. Time for a different product. Someone also wrote how about the $35 dollar or so charge for electronic filing? Shouldn't we get some sort of credit back? Hmmm... 

[frustratedwidower]

This is getting to a point where there are probably countless more cases and enough for a class action suit.  Others have said H&R Block's software has the same problem. Thanks to dianalarose for posting about success e-filing with Freetaxusa.

Folks whose tax returns are rejected because of TT returning their incorrect and false "prior year PIN or AGI error code" should be entitled to receive automatically (without wasting hours of our time calling their help line) compensation for excess time wasted with TT as well as a refund of any state e-filing fees and/or a refund for the money paid to TT for either their CD/online download software or subscription because TT is pretending that "paper filing" is the only solution and spreading the false claim that the IRS is at fault for rejecting TT-created tax returns. 

TT owes their customers at least that much for denying their

program's deficiency.  

Thanks to dianalarose for posting a *solution* for surviving spouses filing a final joint tax return that offers successful e-filing and acceptance by both the IRS and state tax boards at FREETAXUSA dot com.  Go to the IRS website and they provide links to them as well as TT.

It is the principle of TT charging for a state "e-filing" fee for a tax return that is rejected.  I'm not sure if the fee will end up going through, but thankfully we can afford to let that go.  

Instead, we need to help others know that they are entering their tax return info correctly, but TT software is deficient when filing the final joint return with a deceased spouse.  

Some on fixed incomes might not appreciate having to get charged for a rejected "e-file" fee with a state and have to expend more time and fees to either paper file (mailing paper tax returns certified with return receipt for federal and state tax returns) or file again via FREETAXUSA and pay the state e-file fee.

For California e-filing, TT charges $24.99 and FREETAXUSA charges $14.99.

There's already previous ongoing and current class actions against TT for "hiding" their free e-filing tax return service for the poor and pushing the low-income tax filers to a different version where many of them ended up paying up to $200 for TT's "tax service and e-filing!"  

So many of us loyal TT users have voiced the clear problem with TT software on this matter, but their claims that it's an IRS problem and that the "only" solution is to mail and file paper returns is incorrect.  Use FREETAXUSA instead to e-file.  

Cannot stress enough that for many of us in lockdown orders through April 7th because of Covid19 virus, e-filing is    the safest and best option.  

This is not the time to ask younger, "healthy" relatives to risk going to the post office and maybe become asymptomatic carriers and inadvertent spreaders of a virus, nor is it allowed for anyone over 60 or 65 (in California it varies by city) to be out at all except for emergency, medical, and grocery needs.   The SF Bay Area has the highest number of cases and deaths from this virus in California, so it's not a "light matter" to make us paper file our returns.  

Intuit HQ offices are in Mountain View, CA right by Google's HQ...I used to bike right by the Intuit offices to go to work, and since we're all in mandatory lockdown and stay-at-home orders as well, many TT employees are mandated to shelter-in-place at home too.  Will they "volunteer" to head out to the SF Bay Area's TT customers affected by this TT software problem and both mail and pay the USPS fees for postage, certified return receipts and what not?  

 TT/Intuit should really understand that saying "you have no other option but to file a paper return" is both untrue (Freetaxusa e-file returns get accepted) and impossible with the health risk and situation right now.  

Should there not be at least some TurboTax employees who encounter this same problem when filing a married, filing jointly final return with a spouse who passed away? I guess they just love to file paper returns. 

[ralph413]

Thank You Frustratedwidower for your reply. I googled the same question about the eFile fee and here's TT answer. 

Can I get a refund of the e-filing fee if my TurboTax Online ...

ttlc.intuit.com › community › charges-and-fees › help › can-i-get-a-re...

May 24, 2019 - No, because we don't charge an e-filing fee in TurboTax Online. ... The prep fee is charged whether you e-file or print your return. If your tax return is rejected, you can either fix the rejection and try e-filing again or file a paper return instead.

[frustratedwidower]

Many thanks for finding that information ralph413!  I guess this is an inadvertent case of caveat emptor, but how could anyone have known TT has a problem with widows and widowers e-filing a final joint return?  

It's not really the amount of money that stings, but the principle of a functional tax preparation program to work as advertised.   TT is incredibly slothful or indolent regarding this well-known error in their program.  Lots of folks prefer not to file paper returns.  Yes, I understand that's TT's cop out of a solution that one can always file a paper return.  Well, that's not a solution when people are under shelter-in-place orders.

If freetaxusa has no problems with this issue, TT needs to fix their program because as we now know, it is not an IRS problem.  

Thanks for spending the time to find some answers from Intuit regarding this matter. 

[CassLO]

If enough time has passed for Social Security Administration to have done so, the social security number is locked and the return must be sent by regular mail.

[frustratedwidower]

Hi CassLO,

The error code from TurboTax is that the "prior year AGI" is incorrect.  It is not about any SSN being "locked down."  

FREETAXUSA DOT COM generates tax returns for a surviving spouse to file the final married, filing joint tax return AND the IRS ACCEPTS the E-FILING via Freetaxusa generated tax returns.  

The TurboTax tax return E-File was REJECTED by the IRS three times with the same "prior year AGI incorrect" code when it is clearly not the case.  Everyone here has been entering the prior year AGI correctly.  

The problem lies inTurboTax not asking for both the surviving spouse and the deceased spouse's State ID info along with the prior year AGI for the IRS to verify the return.  

TurboTax needs to copy Freetaxusa by adding this additional field.  This is the *only difference* I found between completing both the TurboTax and Freetaxusa's programs.  

The IRS apparently needs BOTH the surviving spouse's state ID and the deceased spouse's state ID info. It took less than half an hour to receive the notifications that both the Freetaxusa-created Federal and State E-FILED tax returns were accepted.

The only two certainties in life are death and taxes.  The IRS has been processing the final tax returns for deceased people for quite a long time, no?  Just saying that FREETAXUSA dot com has no problems with E-FILED returns as TurboTax does for those widowed in the previous year/tax filing year.

[frustratedwidower]

Before I forget, the Social Security Administration locks down the Social Security Number immediately/ very promptly.  

What the IRS wants when e-filing is what FREETAXUSA dot COM figured out:  require inputting the surviving spouse's State ID info and the deceased spouse's State ID info. Not just one spouse, but BOTH of them.

The day after my mother passed and we had the funeral home and hospital inform all the necessary county health and government authorities, her Social Security account and log-in information was inaccessible and closed.  Why did we try to log-in? Because the day after she passed, the Social Security Administration sent an automated email that there was a notice in her account, but we could not access it.   

Alas, deaths are reported immediately and to prevent fraud the Social Security absolutely "locks down" the deceased person's SSN, but this is not the reason why TurboTax tax returns e-filed are rejected.   It is because TurboTax does not ask for sufficient identifying information for both living and deceased spouses.  

[jackieb1]

I have the same issue and I verified it with 2018 return and the transcript from the IRS. If we submit by mail will we have the same problem?

If we submit federal by mail can we still use Turbo Tax to file the State Return?

[rjs]

@jackieb1 

You will not have the same problem if you file by mail.

If you file your federal tax return by mail, you also have to file your state tax return by mail. You cannot e-file a state tax return if you do  not e-file the federal tax return. You can use TurboTax to prepare and print the state tax return, but you have to file it by mail.

[JakailaLO]

If we submit federal by mail can we still use Turbo Tax to file the State Return?

For security reasons, TurboTax does not allow you to e-file your state returns unless you e-file your federal return first or at the same time. See the following FAQ. If you file your federal return by mail you will also have to file your state returns by mail.

Can I e-file my state return before my federal?

For NY residence: You are required to e-file your NY return IF "your software supports the electronic filing of your return." TurboTax does not support the electronic filing of your NY return if you file your federal return by mail. Therefore you are not required to e-file your NY return.