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Housesalad
Level 1

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

During my final review, I am being prompted to fix my federal return and being asked to modify a number under qualified tuition program distribution. Every time I try to fix or pass it on it kicks me back to Review before file. Also at the top of  the screen it says:

 

Other Income Statement: Qualified tuition program distributions - Spouse - You can't file just yet due to a recent law passed by congress.  This means a better outcome for taxpayers like you who have taxable QTP distributions.  We can keep working on your tax return and we'll let you know when we can help you finish up you taxes.

 

Is this something that Turbotax needs to modify before I can submit or is this something I need to directly fix myself?

 

Also, her gross distribution on her 1099Q is less than the cost of her tuition, books, and room/board so should I input the 1099Q into turbotax or not worry about it?

10 Replies
SusanY1
Employee Tax Expert

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

If the expenses were not taxable and were used only for qualifying expenses - that is for tuition, fees, room, board, books, and supplies, you are not required to report the information provided on the 1099-Q.  The IRS only requires you to report the information when the income is taxable.  

 

You can learn more about this form here: Guide to IRS form 1099-Q.

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Housesalad
Level 1

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

Many thanks!!

MarilynG1
Employee Tax Expert

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

You can Delete the 1099-Q from your return, since the Distribution was used for Qualified Education Expenses.

 

Click the link for instructions to Delete a Form in TurboTax Online.

 

Here's the steps to Delete a Form in TurboTax for Windows:

 

  1. Switch to Forms mode.
  2. In the left pane, select the form you want to remove.
  3. After the form is generated in the right pane, select the Delete Form button at the bottom of the window.

 

 

 

 

 

 

 

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cam3199
New Member

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

I am receiving the same exact message each time during final review. All of my 2019 distribution was for non-qualified expenses. There are 3 numbers that one is asked to provide from 1099Q form.  Gross distribution, Earnings & Basis. I had non-qualified distribution for 2018 and had no issues filing. This is a software issue. I hope it is fixed soon. My family & I need are refund sooner than later. Oh and by the way, there has not been any recent change by Congress for 1099Q form. The last IRS post pertaining to 1099Q form was 2017. Please advise. 🙂😕

 

soridian
Level 2

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

THIS IS NOT HELPFUL....same error..and i just pulled the money out.  so CLEARLY a small portion is taxable.  It is in the correct slot but I can not file.  Intuit needs to get this fixed.   I WILL be asking for my early filinng discount to still apply

soridian
Level 2

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

Not Helpful...I have same error and I just pulled the money.  no expenses for tuition.  WHY WILL IT NOT FILE???

keithbader
Level 1

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

But if the tuition and expenses are higher on my 1098-T than on my 1099-Q and I want the education tax credit for the excess, I can't just delete the 1099-Q can I?

KrisD15
Employee Tax Expert

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

The software is being updated.

 

Congress JUST made 2 changes to the treatment of 529 distributions (1099-Q)

          Adding certain apprenticeship programs as eligible education

          Used (within limit) for reducing student loans

 

Although these changes may not affect you, the 1099-Q section of the software must be disabled while the update is in progress.

If this is delaying your ability to e-file, TurboTax will e-mail you when it is ready.

 

Thank you for your patience.

 

 

@soridian

@cam3199

@keithbader

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bejarano
New Member

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

Why is this not fixed yet. I can't file with my 1098-T.

LinaJ2020
Expert Alumni

Cannot finalize tax return due to error based on Wife's 1099Q (taxable income form 1099Q)

You would need to update your program, please do these:

  • If you are using the TurboTax CD/Download software program, open TurboTax and select Check for Updates from the Online menu near the top.
  • If you are using the online version, it's an automatic update when you sign in and out. 

@ bejarano

 

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