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

[dan_e_t]

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. 

[Kat · Accepted solution]

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!

[TracyYang]

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

[dan_e_t]

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

[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!

[dan_e_t]

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. 

[JeanneLO]

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

[smithscl]

This is very disappointing on Turbotax part.  How is it they could not notify of updates needed just as they do for 1095-A and so forth.  Will we know if the update will be legitimate on 4/30/2021 since the updates do not specify what they are for?  Also will we have some type of direction to correct whatever the issue is since per the e-filing shows no errors per Turbotax.  Also, since state rejected because of this, will we be assured of not having to pay again for state filing since that was already paid?  As an 11 year business owner and using Home & Business version for all that time with no prior problems, I am quite upset this happened and somehow Turbotax not knowing and giving better direction.

[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? 

[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.

[Kat]

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.

[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! 

[smithscl]

Is everyone else getting email reminders to re-file the rejected returns, even though we can't do it until 4/30/20201 at the earliest?  Like rubbing salt in the wound.  Would greatly appreciate more feedback directly from Turbotax why this happened and assuring us that the process after the 4/30 update will be seamless and correct this time.

[Lorganized]

Yes!  I am also getting the email notifications to re-file my rejected return, when I cannot until April 30th.  It is likely an automated notification that has no idea of the software error.

[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!