I cannot e-filing my Illinois state tax return this time. I have used TurboTax years and input the similar information as last year. What could be the problem?

[jpliu94]

It says" Reason for e-file ineligibility returns with a valuation limitation amount on schedule M are ineligible to e-file.."

[AmyC]

The only valuation limitation on sch M is line 23 and most common when a farm is involved. The excludable amount for your IL return goes on line 23. You could also have:

• federal Form 1040 or 1040-SR, Schedule D;
• federal Form 4797; 
• federal Form 6252; 
• federal Form 8949; 
• Illinois Schedule K-1-P, Partner’s or Shareholder’s Share of Income,
• Deductions, Credits, and Recapture; and Illinois Schedule K-1-T,
• Beneficiary’s Share of Income and Deductions.
• For installment sales, see instructions on the back of
• Schedule F.

Officially, IL sch M instructions state: Enter the amount of your August 1, 1969, valuation limitation from Schedule F, Gains from Sales or Exchanges of Property Acquired Before August 1, 1969, Line 17.

If you feel this is an error, you may want to delete your state. Then try:

• Don't use Internet Explorer.
• Clear cache and cookies,
• Sign in using a different browser.
• Sign in using a different device
• Log back into your return.
  • Enter the state again.

[Molly_K]

@jpliu94  did you go through the Illinois topic titled “Capital Gain Adjustments,” in the Income section?

The interview asks whether any of the gain reported on your federal schedule D is from the sale of property that you acquired before August 1, 1969. If you select ‘Yes’ and continue to the next screen, there is a box asking for the amount from Illinois schedule F, Line 17. This amount is your valuation limitation.

Illinois Schedule F is used to determine the valuation limitation amount(s) for gains that result from the sale or exchange of property that was acquired before August 1, 1969. Since the Illinois Tax Code did not take effect until August 1, 1969, any appreciation of assets that occurred before that date is not subject to Illinois tax.

Please go back and review your federal schedule D (or the 1099-B worksheet associated with it) to see if it includes any assets entered with an acquisition date before August 1, 1969 (08/01/1969), and make sure that the acquisition date(s) are accurate. If you do have gain from the disposition of an asset that was acquired before August 1, 1969, then you would have a valuation limitation amount to report on schedule M, and unfortunately will have to paper file. If you don’t have any gain from the disposition of assets acquired before August 1, 1969, you should revisit the capital gain adjustments section of the Illinois interview and remove any entries there.