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OK.
I'd say that's a typo in the error message for your situation.
What do you think?
The restriction named may still exist as well.
I believe it is a bug within TurboTax that prevents active traders with more than 1000 schedule D capital gain/loss sales from e-filing NJ state taxes. It is a typo in the sense that there is no such limitation for Schedule D number of transactions for NJ e-File (as far as I can tell, I have not found reference to any such limitation within the NJ state tax guidance documentation) which seems to be what is triggering the error here; and the error is indeed incorrectly reported as "Schedule B".
I have added clarifications in the original post. To be clear, this warning/error is only shown for e-filing NJ return AFTER importing 1099-B from Robinhood with tons of transactions. It has NOTHING to do with Schedule B. The reply from a TurboTax representative also mentioned that it is a concern with NJ-DOP.
Further, the root cause is likely because Robinhood stops reporting transactions as is (ONLY few sales actually from the user's perspective) but a breakdown of underlying transactions compared with 1099B in 2020. Nonetheless, as a PAID service, TurboTax should be able to aggregate as necessary instead of suddenly rejecting NJ e-filing AFTER a paid user imports a 1099-B with tons of transactions. While manual aggregation is possible, it makes little sense for a paid service to save no time or effort in the end but incur additional cost for paper printing and mailing.
In my case I don't believe this is caused by Robinhood but by other .txf brokerage imports. The TurboTax generated "print tax return for mailing" for NJ is 75 pages for me, so I think the easiest solution is to pay for this to be printed and send it out. Obviously this is improperly handled by TurboTax.
Any updates or work around this? I just received this message and would like to avoid printing 100s of pages.
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