Why is Turbo Tax making me file a CO Form DR 0104AD for contributing to a 529 plan?

[klizzi]

Is this new?  I have always deducted my 529 contributions on my CO tax return without being prohibited to file electronically.  Am I doing something wrong now?

[DaveF1006]

A contribution to a 529 plan is fully deductible and subtracted from Colorado income.  CO Form DR 0104AD is the tax form used to report all eligible subtractions from federal taxable income according to the top of the form DR 0104D. 

There are no restrictions to electronic file a Co return that has a Form DR 0104D in the return. What is the specific error message you are receiving when you file this return? This form has existed for some time so it is not something that is new. There must be another reason why you can't file electronically.

[klizzi]

Here's the error I get around electronic filing "Return has state taxes witheld reported on sources other than W-2, W-2G, 1099-R, 1099-G, 1099-INT, or 1099-Misc".  I did report a small pension distribution in the amount of $178 that was reported on a 1099-R which, according to the error, should still allow me to file electronically.

[AmyC]

Yes, the 1099-R having tax withheld is fine. I wonder if state tax was withheld in your investments, a k-1 or some other place. Perhaps a button got hit by accident. Review your CO return, line 20 to match your 1099-R form.

Look for any other tax withheld on the CO form and determine where that amount came from. To view:

• In desktop, switch to Forms Mode. 
• For online, see How do I preview my TurboTax Online return before filing?

[klizzi]

I looked at line 20 and the value looks ok.  It contains my W2 withholding and in line 13 there is $1,361 value that I'm not sure what it is made up of outside 1099-G which would account for $535 of that line item.  I'm figuring property tax deductions are in there as well as vehicle sales tax.

I just don't understand why it's preventing me from filing electronically.  

[AmyC]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the  directions below:

TurboTax Online:

Sign into your online account.

Locate the Tax Tools on the left-hand side of the screen. 

A drop-down will appear. Select Tools  

On the pop-up screen, click on “Share my file with agent.”

This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.

Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”

This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.  

[klizzi]

Hi there.  My token number is 1081479.

Thanks so much for your help.

Karen

[AmyC]

After reviewing your return, I see two issues. You have an error on your ESPP sale #6 of 7. It has incomplete information and needs to have shares entered and selling price farther into the program after answering it is ESPP, you must enter shares there again, this can change your refund/balance due.

The second issue is on the CO return. You have marked that you were incarcerated 180 days or more and I do not believe that is the case due to your income, w2 answer and dependents. Changing this also affects your CO refund/ balance due. The title is State Sales Tax Refund for the incarcerated question so I believe that is the root of your issue.

Solving the second one is another story. I checked after your w2 entry and it does not have  prison marked. It has nothing unusual. Which would be correct. Therefore, something in the program needs attention and your case is being moved to an investigations team and will be out of my hands.

[klizzi]

Oh wow…I combed through that return and didn’t see those issues.  I definitely wasn’t incarcerated so that’s an easy fix and will review my ESPP.

Thank you so much for your help.

[klizzi]

Well I fixed both errors you mentioned but I still get the same error in Turbo Tax saying I can't file electronically.  I'm glad you pointed it out as it got me an additional $300 refund from state.  Any other ideas?

[AmyC]

I am glad I was able to up your refund! I get the same message as you. I don't know if this is specific to you. We are not seeing this issue with others and it is out of my hands.  I recommend you have someone call you to go over this issue.