I have a solo 401k and am trying to claim the $500 auto-enrollment credit in Part II (NOT the startup costs credit in Part I). Where do you claim this in Turbotax Home & Business? The only option I see is to claim the credit for startup costs (Part I).
I would go into Forms Mode and pull the form up from there.
On a related note/error:
On Home & Business MacOS: On form 8881, entry of $500 entered (not by me) on Part I line 4 that I cannot remove. I am trying to claim for my solo 401k under Part II which I checked.
I can't seem to figure out how to remove the entry on Part I line 4 which appears to be the issue on why my Federal and State returns keep getting rejected. It needs to be 0. I've tried manually going into forms- won't allow. I've tried Easy Steps and trying to go under Self-retirement tab, but it will not allow any changes when clicking update.
Please help Turbo Tax. It's after 3/6/24 when it was purported to be ready. (it's not)
Click Forms: 8881: scroll down to Part II, Click Auto-Enroll for the $500 tax credit.
The default amount on Form 8881 Part I Line 4 is $500. If the amount on Line 3 is greater, then the amount on Line 4 will be increased. If the rest of Part I is left blank, the default number on Line 4 should not affect the e-filing of your return.
If this issue remains, please provide the exact text of the error/reject message you are receiving.
@PatriciaV F8881-002-01 - Form 8881, 'PensionPlanStartupCostsCrAmt' must have a non-zero value if an amount is entered.
Please clarify the following:
1. You have checked the YES box on Form 8881 Part II "Was an auto-enrollment option provided for employees?"
2. A credit was reported on Schedule K-1 either from Form 1120S Box 13 Code F, G or P or Form 1065 box 15 Code F, G or P.
If the box is checked, you must have a credit from a K-1 in order to resolve the form error. Uncheck the box if a credit doesn't exist.
1. Yes, part II box checked on 8881. (Claiming $500 tax credit for auto enrollment for setting up my solo 401k). No employees which is why Part I is not applicable.
2. No schedule K. Only schedule C. Solo Proprietorship.
Returns still getting rejected efile. Already paid $25 to Turbo Tax for CA efile so sending by snail mail isn’t really any option-unless TT will provide refund but would really prefer efile.
Mahalo.
I see that Turbo Tax updated the SW and Form 8881, Part I $500 is now removed and the correct $0
However, I am now getting another error message:
F3800-497 - If Form 3800, 'GeneralBusCrFromNnPssvActyAmt' from 'Form8881PartIICYCreditsGrp' has a non-zero value and the corresponding column (d) 'PassThroughEntityEIN' does not have a value, then Form 8881 must be present in the return.
Form 3800 is suppose to pull Form 8881, Part II, $500 credit to Form 3800, DD- not "d" as in the error message. TT is getting there.
Mahalo, vf
It's hard to determine what is going on without being able to actually look at your return. An option available is for you to provide a TurboTax ".tax2023" file to us that is experiencing this issue so we can take a look at your return. This will help determine what the issue is and provide you with a solution.
If this is something you'd like to do, and you are using TurboTax desktop, on your menu bar at the very top, click Online and then Send Tax File to Agent. When you click to send, you will get a pop-up asking you if you want to send a diagnostic copy for an agent. Select send and then you will get another popup with a token number.
If you are using TurboTax Online, select an income section on your return to pull up the Tax Tools option on the left side of the screen. When you see Tax Tools, click on it. You will then select Tools. This will pull up a pop up box titled Tools Center. In this box, select Share my file with Agent. Click okay on the pop up informing you of what a diagnostic copy is. You will then get a pop up box with a token number.
Reply with the token number and we’ll be able to open a TurboTax file with your numbers but not your personal information.
Since this credit is applicable to a business with employees, I suggest editing your business information to reflect that you do have an employee since you have a solo 401(k).
There are no employees- it's a Solo401k for sole proprietorship. Part II is applicable since my solo401k has an an auto enrollment option.
So technically, this isn't correct.
Tried this and it was also rejected. (and not technically correct since there are no employees).
There is another situation with this form that is currently being investigated. The program is scheduled to be updated in about 2 weeks. The errors you are getting when efiling may be resolved with this update. I recommend trying then and if you are still getting the error message, please comment back.
Thank you for trying to the suggestion above. Since answering the question yes would not affect your overall return, it was an attempted workaround to help you file.
I have same problem and just got rejected for my first e-file.
I manually add the 8881 from(as I had no way to get 8881), and part II has 500 credit, part I is empty.
I checked my efile file, there is no 8881 form in my tax return(has 3800, 8880 etc forms), I guess that's why it is rejected.
So how can I includ the manually added 8881 in the efile?
Thanks!
Still getting reject even after the latest TT SW update.
F3800-497 - If Form 3800, 'GeneralBusCrFromNnPssvActyAmt' from 'Form8881PartIICYCreditsGrp' has a non-zero value and the corresponding column (d) 'PassThroughEntityEIN' does not have a value, then Form 8881 must be present in the return.
Update 6/6/24, I talked to customer service, looks like it's a bug, the efile or (printed .pdf file) is missing the 8881 form. That's why it get rejected... so expecting them to fix this in a few days, maybe mid next week.
There was an update today that I installed and still got rejected.
F3800-497 - If Form 3800, 'GeneralBusCrFromNnPssvActyAmt' from 'Form8881PartIICYCreditsGrp' has a non-zero value and the corresponding column (d) 'PassThroughEntityEIN' does not have a value, then Form 8881 must be present in the return.
so frustrating.
I just updated with new version and still the form 8881 is not in, guess has to wait a few more days.
Can someone from Intuit or other users give any more solid answer to the situation being asked about in this thread?
There are a number of us who are sole proprietors with no other employees, file our own taxes with Schedule C, and want to claim this auto-enrollment credit for a Solo 401(k) each year over the next few years. We need to be able to fill out just part II of Form 8881 to claim the $500 credit, have that information flow correctly to Form 3800 and then on to the 1040. And then we need all of these forms to be included in our final tax filing and not have the filing rejected.
From reading this thread so far, Intuit has been saying for a while now that this will be made possible, but user responses say it still hasn't been. Some of us are trying to make time-sensitive decisions that depend on whether we'll be able to claim this credit when we do our 2024 taxes or not. And I see others in the thread may still be trying to claim the credit for 2023 taxes.
As people in this thread have tried to make clear to the responders from Intuit, this is not about Part I of Form 8881 which is the Startup Credit, a different credit. This is about those of us not claiming anything on Part I and only claiming Part II, the Small Employer Auto-Enrollment Credit as sole proprietors (not businesses with other employees, not as partnerships, and not as S-Corps).
I would like to know when this will be implemented and with all honesty which versions of TurboTax will allow this. I really wish it would be implemented in the online version. It is frustrating to be able to file the entire rest of the taxes, but not be able to use TurboTax because of a couple forms that need just a number or two filled out and to be included in the return. And it's been difficult trying to make decisions that require the ability to claim this credit while waiting to hear when it will be fully functional.
Any straight answers? Thank you!
I'm really interested in this functionality as well. I had to move away from Turbotax for taxes because of this feature lacking. If this were made available in the software I'd happily move our returns back to TT.
There was another SW update that I installed today. Shortly thereafter- same error message appears.
Can anyone at TurboTax assist?
At this point, if it's not getting fixed, I would likely ask TurboTax to refund my CA State $25 eFile fee since it appears that I'm going to have print 170 pages and mail my Federal return in and I won't be able to CA eFile.
Installed the latest update and same thing still happening.
Come on TurboTax- this is isn't something new and it's still broken.
Any fixes on the way?
If TurboTax is asking me to mail in Federal return- all 148 pages. I would like a refund for the electronic filing fee I already paid TT to my state refund.