2024 Federal return efile rejected with error S3-F1040-144

[henrysf]

Thanks @DawnC Your reply is very helpful for me to understand what's going on.  Is there any way I can check if TurboTax does/doesn't count the w-2 with zero in box 1 without taking an efile attempt?  I don't think I can check if any TurboTax update contains change/fix relevant to my issue here, right?  I will wait a bit and watch this post over the weekend.

[KeshaH]

You wouldn't know unless you attempt the e-file. Adding $1 to your box 1 would ensure that the W-2 gets submitted with the return when you e-file and it doesn't change the bottom line of the return. That may be the best option for you.

@henrysf  

[henrysf]

Looking back at my tax return last year, I actually put the same number from IHSS W2's box 3 to box 1, selected "uncommon situations"->"Nontaxable Medicaid payments that qualify as difficulty of care payments", and claimed full amount of box 1 value.  I was able to efile last year, so that looks like another workaround in addition to adding $1 to box 1.  Though, on last year (2023)'s IHSS W2, there was no box 12.  On this year (2024), there was box 12 (code II with full amount of box 3 there).   I am not sure if that matters from IRS's perspective though.

[dipsys]

I have the same issue. I too have ihss related W2 with $0 in Box and getting the same error 

 'ExcessSocSecAndTier1RRTATaxAmt' has a non-zero value, then at least two Form W-2s with the same 'EmployeeSSN' must be present in the return

Why is TurboTax passing the Review and then getting this rejected when e-filing? 

What does Turbo Tax need to do to fix this?

[BrittanyS]

The issue is occurring because there is a $0 in box 1.  It's not being recognized as a separate W-2.  Previously TurboTax would block any $0 Box 1 W-2 from being e-filed, and the return had to be mailed in.  The steps provided by DawnC or henrysf are the best workarounds.  You can enter $1 in box 1 or the amount in box 3.  Both should clear the e-file rejection.

@dipsys 

[henrysf]

For the workaround to use box 3 value in box 1 with "Nontaxable medicaid payments", there may be a round up issue.  For example, if box 3 value is 1000.88, TT would somehow round it to 1001 somewhere, and Smart check would report an error say that the number can not be larger than 1000.88.   I could round it down to 1000 to get around that, but it's still no ideal.  No, even if I put 1000.88 during Smart Check fixup, it would still be rounded to 1001 and the error would come up again. 

I really hope TT can handle zero box 1 value with excess social security tax withheld so I don't have to use any workaround every year.

[dipsys]

Yes I too faced the same round up issue. I had to manually change the value - so they are different in the W2 box (which has the cents) and then in the 1040. Which is not correct. And now there is no value in Box 12 a in the ihss W2 which is also not correct.

Turbo Tax needs to fix this! And not have us do these work arounds because of the buggy software!

[MonikaK1]

Error S3-F1040-144 is specifically referring to the credit for Excess Social Security withholding.

In order to receive a refundable credit for excess social security withholding, you have to have reported at least two Forms W-2. If you had excess withholding from just one employer, you need to ask the employer to refund the excess withholding. If the employer doesn't adjust the overcollection, you can use Form 843, Claim for Refund and Request for Abatement to claim a refund. Attach copies of your Forms W-2, Wage and Tax Statement for the year to Form 843.

See IRS Tax Topic 608 for more information.

If you have this error on your return, revisit the W-2 section in TurboTax. If you are filing a joint return, check to see if you have identified each W-2 correctly as belonging to "self" or "spouse". If a W-2 is mislabeled as belonging to the wrong spouse, TurboTax will see the Social Security withholding as belonging to one person instead of two, even if the correct Social Security numbers are on each W-2. Mislabeling the owner of a W-2 is a common source of this error.

Please also see this TurboTax help article for more information and steps to correct.

If one of your W-2s is for IHSS Medicaid Waiver payments, and you have a zero in Box 1, see this help article for more information. 

If the only entry on your W-2 is in Box 12 (there's a blank or a $0 in Box 1), and you want to use the income to qualify for Earned Income Credit or Additional Child Tax Credit, you can enter the W-2 as is.

If the only entry on your W-2 is in Box 12 (there's a blank or a $0 in Box 1) and you don’t want to use the income to qualify for Earned Income Credit or Additional Child Tax Credit, you don’t need to enter the W-2 at all.

We tested the situation with Box 1 being zero earlier in the season when the IHSS help article was being updated. The Box 12 code and related TurboTax steps are new this year. At that time, the steps in the article were working. Please advise if you follow the steps in the article and get a different result.

Thank you.

[Edited 04/01/25| 2:59pm PST] 

@henrysf 

@dipsys 

[dipsys]

I am filing single as head of household with one employer W2 and one ihss W2. I need to enter the ihss W2 even though I don't need the EIC because I want the excess SS taxes to be credited.

Box 1 is 0 and Box 12 a has a value. In the 1040 Turbo Tax correctly deducts the ihss W2 value and allows to e-file (there was an error earlier in Jan and that appears to be fixed now). The excess Social Security from the ihss W2 is also correctly credited and passes review. But then the e-filing is later rejected by the IRS because the W2 is 0 with the F-1040-144 error.

If I do the earlier work around and enter a value in Box 1 but leave Box 12 a blank, and then check off medicaid waiver in uncommon situations on the next page, then the 1040 passes review. I have not yet e-filed because I believe that leaving the Box 12 a blank in Turbo Tax is incorrect as the W2 does have a value in it. This is what Turbo Tax needs to fix in the product @MonikaK1 

[MonikaK1]

Thank you; I had just replied in your other thread.

If one of your W-2s is for IHSS Medicaid Waiver payments, and you have a zero in Box 1, see this help article for more information. 

Normally:

If the only entry on your W-2 is in Box 12 (there's a blank or a $0 in Box 1), and you want to use the income to qualify for Earned Income Credit or Additional Child Tax Credit, you can enter the W-2 as is.

If the only entry on your W-2 is in Box 12 (there's a blank or a $0 in Box 1) and you don’t want to use the income to qualify for Earned Income Credit or Additional Child Tax Credit, you don’t need to enter the W-2 at all.

However, you have an unusual situation in that you appear to be entitled to a credit for excess Social Security withholding between your IHSS W-2 and the W-2 form your other employer, so you will want to enter the Social Security withholding for both.

We tested the situation with Box 1 being zero earlier in the season when the IHSS help article was being updated. The Box 12 code and related TurboTax steps are new this year. At that time, the steps in the article were working. In the previous version of the help article, we advised entering the Box 3 amount again in Box 1, but this no longer worked when the Box 12 code was added this year.

Try entering $1 in Box 1 of the IHSS W-2 instead of zero. Check your return to confirm that the IHSS income is excluded only one time. 

@dipsys

[dipsys]

Thank you @MonikaK1 

But isn't entering $1 in the Box incorrect? That does not match what is in W2. Why isn't Turbo Tax fixing this issue? It is partly fixed with Box 12 a value being deducted from the gross income. 

[SusanY1]

The IRS doesn't accept returns where that value is 0, so there isn't any way to "fix" this other than to enter $1 in the Box 1 to e-file.  This is an acceptable way to allow your return to e-file as it does not materially change the return. 

[dipsys]

So which way is Turbo Tax recommending then?

1.  Enter $1 in Box 1 and Box 12 enter the actual wage amount and then efile? 

OR

2. Enter Actual Wage amount in Box 1 and then do the uncommon situation and medicaid waiver of payment and then efile?

@SusanY1 @MonikaK1 @

[DrGuzak]

Exactly in same situation. It almost as if TT does not submit second W2 because line 1 is 0.

Last year's version was rejecting the online submission just based on the fact that line 1 of W2 is zero, but this year I was surprised that it allowed me to submit, so I though it was fixed, but to my surprise it got rejected.

As other user mentioned, excess of the social security due to dual W2 is properly handled by TT, so to me it's simple issue of TT not including the W2 with line 1 zero.

TT have to fix this bug.

[BrittanyS]

If you wish to e-file instead of mailing in your return, you will need to enter $1 in Box 1 of the IHSS W-2 instead of zero. This rejection occurs because the IRS won't accept a $0 in Box 1 as an e-filed return.  The other option is to leave Box 1 as $0 and file your return by mail.

@dipsys