Schedule SC - Massachusetts Septic Credit Issue

[jmacpo]

I thought I would give this a try! State of MA: Turbo Tax indicated that I had Unused Septic Credits for 2015, 2016, 2017 @ $1500/yr. So I continued with Interview and with TTax filling out Line 1a/1b it determined that I had a $47 Septic Credit? When doing Smart Check the only error in State was for Schedule SC Line 1a: "Line 1a must be a compliant Tax Year"? Well the year septic was installed was 11/08/2013: I'm aware that the Date is quite old but Turbo Tax is requesting me to fill out and submit! I can't change the Letter of Compliance date nor can I delete the Schedule SC. It reappears each time I run Smart Check producing the same Error.

[jmacpo]

I thought I would give this a try! State of MA: Turbo Tax indicated that I had Unused Septic Credits for 2015, 2016, 2017 @ $1500/yr. So I continued with Interview and with TTax filling out Line 1a/1b it determined that I had a $47 Septic Credit? When doing Smart Check the only error in State was for Schedule SC Line 1a: "Line 1a must be a compliant Tax Year"? Well the year septic was installed was 11/08/2013: I'm aware that the Date is quite old but Turbo Tax is requesting me to fill out and submit! I can't change the Letter of Compliance date nor can I delete the Schedule SC. It reappears each time I run Smart Check producing the same Error.

[MaryK4]

Try following the link to see how to delete the form from your tax return.  How do I view and delete forms in TurboTax Online?

[jmacpo]

Thanks Mary: Deleting the Schedule SC is my last choice! I'm trying to understand the fact that TT is telling me I have $4500 in Unused Credits and I qualify for a $47 credit yet it also tells me that my "Letter of Compliance" is not a compliant Tax Year? How can both be correct? Also if I have $4500 in Unused Credits why isn't the amount larger than $47?

Part 2: On deleting Schedule SC! All information seems to refer to the Online Version of Turbo Tax yet I have the CD Version. With this version every time I delete the form, it disappears then returns with the Smart Check Error still being indicated in the results! Could you also help me out on this as it should be the easier solution

[DaveF1006]

Have you gone through the questions regarding the Septic question in your Mass state return. You will need to go through the questions until you reach a page that says Unused Septic Credit Carryovers. You would need to look at your 2018 Schedule SC line 15 column C and update the information.

[jmacpo]

Although TT indicates a Credit in Schedule SC, I am unable to submit the Form due to a "Non Compliant Tax Year Error"

With this being the case I'm just going to give up on  Schedule SC and Delete it! BUT - All information on Deleting a Form seems to refer to the Online Version of Turbo Tax, yet I have the CD Version. With this version every time I delete the form, it disappears then reappears when the Smart Check is run, still indicating the Error in Schedule SC Line 1a! I just want to delete this thing and move on! Could someone help me out on this as it should be the easier solution!

[mkm3]

I am having the exact same problem. I was able to file but was rejected and was told to wait for an update. The update was no help. I am still trying to find a solution.

[AkinaLO]

@mkm3 What rejection code do you have? 

[mkm3]

I did not receive a code but a message after the return was rejected.

Initially I was unable to send due to "non compliant tax year" on Massachusetts Schedule SC.

I was unable to delete form so I made the values all $0 and summited.

The return error description is below.

Not sure what to do except think I may have to redo  taxes and not import previous year data

[DawnC]

You could do that but before you do, try to remove the credit from the Business Related Non-Refundable Credits Summary page (Schedule CMS).   Go to Forms mode, by clicking on Forms in the upper right corner.   Then scroll all the way to the list of forms and find that summary from the Massachusetts forms list.   Click on the form, but instead of deleting the entire Form, just delete that credit on the Form.    There are 2 schedules you can edit:

• Schedule CMS - the error message is referencing this form (Credit Manager Summary) 
• Schedule SC - this is the detail of the septic credit - Review Part 4.   It shows previous years' unused credits (a), the amount being used this year (b) (max is $1500 for septic), and the amount you can use in future years (c).   

The Septic Credit is available to owners of residential property who repair or replace a failed septic system.  No more than $1,500 of the credit may be claimed in a single tax year. The amount of the credit is 40% of the cost with a maximum aggregate credit amount of $6,000.

In computing the credit, any interest subsidy received from the Commonwealth must be subtracted from your expenses.  The credit may be first claimed in the tax year in which the repair or replacement work is completed.   You must complete Massachusetts Schedule SC and retain it for your records along with a Certificate of Compliance.

If you voluntarily repair or replace a cesspool or septic tank, this credit is not available since it is not considered a "failed" system.    @mkm3

[mkm3]

Thank you for the response.

The credit is equal to zero on both Schedule CMS and SC. There is no credit.

Turbo tax error checker is flagging the date to be invalid.

I changed the date and kept credit to $0 and was able to summited again.

I will wait to see if it is accepted.

[petecram]

I had the same exact problem as MKM3 expressed.

I have taken the same exact action of zero's in the credit fields and placing a current year date.

There seems to be a clear defect in the TT software.

PC

[RHTY2021]

I had the same exact problem as MKM3 and petecram expressed.

I have taken the same exact action of zero's in the credit fields and placing a current year date.

There seems to be a clear defect in the TT software.

[deepbluewater]

This Schedule SC has been a nightmare for the last 2 years and still TurboTax can't find a way to fix this bug. I am very frustrated as I have repeatedly received the same errors as outlined by all in this thread.

[RobertM3]

TurboTax continues to have this problem with Massachusetts Schedule SC in tax year 2022.  I have logged over 5 hours with help desk trying to get this resolved.  In my opinion they have a software glitch that they are unwilling to recognize. The problem is the carryover of any unused credit.  Massachusetts says you can take the credit over five years starting in the year that the work was done.  TurboTax tries to carry the credit into the sixth year and doesn't delete the prior information even though the credit can no longer be taken.  I was told they think they can carry it over 5 years, but then they don't give the option to enter it into a sixth year.

[MassRes2]

This is ridiculous. We had our septic fixed 5 years ago and collected our tax credit but can't delete the form despite following the instructions to delete a form. So it keeps coming up as an error that the tax year is not compliant because it is outside the 5-year window. And due to the error that we cannot fix, we can't file our taxes electronically with TurboTax despite paying the fee for State Tax preparation. Turbo tax, you need to fix this glitch!