How to Claim Small Employer Auto-Enrollment Credit (Form 8881, Part II) for solo 401k

[xchens18]

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!

[calbear]

@JotikaT2 

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.

[xchens18]

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.

[calbear]

@JotikaT2 @xchens18 

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.

[xchens18]

I just updated with new version and still the form 8881 is not in, guess has to wait a few more days.

[calbear]

Latest SW update installed and still same error.

@JotikaT2 @xchens18 

[lac528]

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!

[gamma3]

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. 

[calbear]

@JotikaT2 @xchens18 

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.

[calbear]

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.

@JotikaT2 @

[DoninGA]

@calbear If you are required to mail the federal tax return then the Only pages that are mailed are the signed and dated Form 1040 plus all forms and schedules which have an Attachment Sequence Number located in the upper right corner of the form and/or schedule.  You do Not send any worksheets or information only pages to the IRS.

Contact TurboTax support for a refund of the state e-file fee you paid.  Use the key words Billing Issue

Support is open from 5am to 5pm Pacific time, Monday thru Friday.

See this TurboTax support FAQ for contacting support - https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-phone-number...

Support can also be reached by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax

[LenaH]

In TurboTax Desktop, please follow the instructions below:

1. Open your Schedule C.
2. Open your business expenses.
3. Click Start next to All other expenses.
4. Enter your Pension Plan Startup Costs.
5. Answer the relevant questions.
6. Continue through the screens.
7. Answer all questions on the page, We need a little more information about your employee pension plan startup costs and answer Yes to the question, Was an auto-enrollment option provided for employees?
8. Answer the relevant questions.
9. Go to the Business Deductions and Credits area in the Business Items topic.
10. Select Other Business Credits on the next screen.
11. Click on Pension Plans - Startup Costs, Auto-Enrollment, and Military Spouse Participation Credits.

    

12. A credit will be reported on Form 3800, Part III, line 1dd.

You may need to manually update your TurboTax Desktop. To do so, please click here. 

If you have any other questions or concerns, please let us know and we can assist you further. 

[lac528]

@calbear Would you mind posting in this thread whether the solution that was posted just above this message works for you (and maybe what TurboTax version you're using). I think it would help a lot of us to know if we can definitely claim that auto-enrollment credit without claiming the startup credit and file properly now or whether it's still not working in particular versions.

[lac528]

@LenaH 

The problem is that while the above solution works for a company with employees, it doesn't work for a sole proprietor with no employees which is eligible for and trying to claim the auto-enrollment credit (Form 8881, Part II), but not eligible for and not trying to claim the startup credit (Form 8881, Part I). These 2 credits have different eligibility criteria and sole proprietors can be eligible for Part II while not being eligible for Part I and TurboTax appears to provide no way to claim the Part II credit in that scenario.

Please see this thread for more on this problem which I hope TurboTax will remedy asap.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/no-place-to-enter-small-employer...

[LenaH]

Thank you for your patience. I will submit this for further investigation. The current workaround for this issue will be to use TurboTax Desktop and check Yes for the question, Was an auto-enrollment option provided for employees? in Forms mode for Form 8881. 

For more information on switching from TurboTax Online to TurboTax Desktop, please click here. 

@lac528