NC Reject Code NCD400-2146 / Reject of North Carolina tax return

[ssa-1099sm]

My NC tax return was rejected. I have called TurboTax to troubleshoot, but to no avail. Description below - but basically my remaining tax liability is <$1,000, so I fall under an Exception so don't owe a penalty for underpayment. 

On the Turbotax prepared forms, the Exception field is NOT null - and then Part 1 Line 26e is NOT blank - Turbotax printed forms show a Zero (which is allowed per the description). 

I am thinking this may be a bug in Turbotax and I need to file by mail. But is there something else going on that I've missed?  Would strongly prefer to e-file since that is part of the selling point of Turbotax...

Appreciate any help! Thanks.

DETAILS FROM TURBOTAX:

Description of error: 

North Carolina return rejection. [D-400] If the Exception to Underpayment of Estimated Income [Tax] is not null, Part 1 Line 26e cannot be blank. Zero is allowed

Reject Code NCD400-2146

What needs to be done:

Please review the reason for the reject. If necessary, make the appropriate change and re-submit this return electronically. However, if the reject continues, you may want to file this return via U.S. Mail. To file your state return, print it and mail to the appropriate taxing authority.

[AmyC · Accepted solution]

The error is saying - you told me you have an exception to the penalty but the penalty is blank.

The fix - you need a zero.

Here are some options:

• The "Delete and Re-add" Method: 
  1. Go to the North Carolina state section in TurboTax. 
  2. Find the screen for Underpayment Penalties. Even though you don't owe one, walk through the interview again. 
  3. If there is an option to "Calculate my penalty for me," select it. 
  4. Sometimes forcing the calculation engine to run again "wakes up" the field and places the 0 in the electronic record.
  5. Check to see if your form shows a zero now on D 400, line 26e

• Manually Enter a "0": If you are using TurboTax Desktop (Windows/Mac), 
  1. switch to Forms Mode. 
  2. Locate the Form D-400 from the left side
  3. Find Line 26e. 
  4. If it is highlighted in a specific color (usually yellow or cyan), try manually typing 0 into that field. 
  5. If it's already there, delete it and re-type it.

• The "Waiver" Checkbox: Look for a screen that asks about "Penalty Exceptions" or "Annualized Income." Sometimes checking and then unchecking a box can reset the form's internal logic.

A full or corrupted cache can cause problems in TurboTax, sometimes you need to clear your cache (that is, remove these temporary files).

Online version:

1. Delete the underpayment penalty / worksheet- if possible, see How to Delete  
2. Log out of your return and try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cache and cookies,
   • Sign in using a different browser.
   • Sign in using a different device.
3. Log back into your return.
   • Enter the information again. 

Desktop version: 

1. Delete the form
2. Save your return while closing the program.
3. Update the program
4. Open
5. Enter the information again.

[ssa-1099sm]

Thank you! That did it! I think it was a combo of delete/re-add but also clearing cache and cookies. 

I really appreciate your giving a thorough response. Have a great rest of tax season.

[KOCF]

I am getting the same error on Turbotax online:

North Carolina return rejection[D-400] If the Exception to Underpayment of Estimated Income is not null, Part 1 Line 26e cannot be blank. Zero is allowedReject Code NCD400-2146

However, I did not ask for an exception to underpayment and even when I say "no" to exception, an "E" shows up in that "exception to underpayment" spot (in previous year returns, there is no E in that spot).  Then Line 26e is not blank (which is what the error says).  It is 0, but NC keeps on rejecting it.  Turbotax support said there was a software issue where it was inappropriately inserting an E in the "exception to underpayment".  They said it should be fixed soon, but that was 2 weeks ago and my form still has the "E" and then 0 for line 26e, which is triggering the rejection.  I would really like to efile this and not file by mail.  Is there anything else that I can do to correct it?  I tried deleting the underpayment penalty worksheet and clearing cache like this post said but this did not work for me.  Thanks!

[DawnC]

Have you tried removing the zero that is there - clearing the field out completely and then re-entering zero?   If you are using the desktop software, go into Forms and look for the Red Exclamation point(s) and see if you can successfully delete and re-enter.     And make sure your software is updated.   @KOCF