I keep trying to e-file a joint federal return; however, the system gives me an error message due to a hang up with a 1099-G provided by the state of Colorado. The message says, "PFML or SDI should not be checked unless the payment is from a state that issues paid family leave or state disability insurance payments."
The way this is worded, it seems as though the system does not recognize Colorado as a state offering paid family leave. The only box it allows me to interact with in this error section is the box to check or uncheck for PFML.
Is the TurboTax software not yet equipped to handle Colorado's PFML?
It depends. Turbo Tax may also be alerting you to the fact that PFML may or may not be be allowed in the State of Colorado. The fact is that Colorado will pay up to 12 weeks of PFML.
Check the box and see if Turbo Tax will allow you to finish your return with no errors.
[Edited 02/10/24|10:52 am PST]
Thank you, Dave. The box is checked currently, but I believe the software is wanting me to uncheck the box to move forward. It has me in a loop to review the error in order to e-file and if I don't correct that error, it either wants me to print it and mail it or, again, correct the error.
That being said, I did receive a message today that was not there yesterday that stated I would have to wait until 1/30/25 to file due to accommodating for tax law changes. I will try again on the 30th.
I am having the same issue in Colorado and am anxious to see if this is resolved after the 30th. I haven't tried to file yet. thank you pnbmartin for posting this.
Same obnoxious error loop here. Hoping this is fixed tomorrow when my Colorado return is available for e-file. If not, what do we do? I paid for a service that is supposed to provide e-file, and my payment has already been taken though the system will not allow me to move forward with what I paid for.
The state of Colorado will not be ready to accept e-filed tax returns until Tuesday, February 11.
If you e-file your Colorado return prior to this, we’ll hold the state return until Colorado is ready to accept returns. At that time, we’ll automatically transmit the state return.
We do not recommend printing and mailing Colorado tax returns; this could cause delays in processing. E-file remains the fastest, more efficient way to file.
Refund processing times after filing is determined by the Colorado Department of Revenue.
Thank you for the feedback, Catina. I have no intention of printing and mailing my federal return, especially since I have already paid for all services and am now left to sit and wait.
I do not believe the error is in filing state taxes. I've made it through the page that sets an e-file for federal and "file later" for Colorado; however, the system is not allowing a federal e-file to occur due to the "correct error" hang-up with the 1099-G from Colorado. It does not allow you to proceed with the PFML/SDI box checked, and I'm not going to uncheck the box because it is in fact paid family leave. My only assumption is that if I uncheck that box, since that is the only area that you can interact with on the "correct error" page, it will allow you to e-file, but at that point, it would be submitting/filing incorrect information, which is why I have not attempted/tested that approach.
As a previous reply mentioned, it is a continuous loop that only gives you the option to "correct error" or "print return." We cannot e-file as the system is currently designed.
Hi Catina
The Colorado return is not the issue. The federal return will not allow us to move forward with e-file without unchecking the PFML or SDI box on form 1099-G which is correctly checked if we have received FAMLI leave pay from the Colorado Department of Labor and Employment in 2024. It seems the only option with this error loop is to print and mail the return, which as you said will cause delays in processing and is not what I paid for.
Hey pnbmartin
I was able to complete my return by going back to the 1099-G form entry and removing "Colorado" in the section that asks for state or locality. I left both state and locality blank. All of the details in the fields below that I previously entered had been wiped. I re-entered them and was able to successfully e-file. Hope this helps you!
So, I'm now having additional hang-ups with filing. I wanted to review my actual forms that were being submitted and found that my original selection to file early and pay $25, which is incredibly deceptive how it's handled in the system, was still in my forms even though I changed that selection days ago to a direct deposit that did not require me to pay TurboTax an extra fee. Now, I need to know how to refresh that, because the system isn't doing it automatically.
I was also severely questioning this entire process, so I deleted my 1099-G from the system to see how the numbers would change and not only did my federal return increase, but my state did as well. So, the way the system is handling the 1099-G from Colorado is that it is taking out state taxes out on a benefit that should have zero taxes taken out. I will definitely not be filing my taxes as the system is built and am very seriously considering requesting a refund and going somewhere else.
I figured out how to delete the form for that $25 early deposit fee, but now with having the state tax obligation increase with the 1099-G from Colorado paid family leave (FAMLI), I seriously doubt my tax documents are going to be correct.
CO paid family leave is not taxed by the state, so why is my refund decreasing when I enter the 1099-G information into TurboTax?
I also waited until January 30 to try again, but the same hang-up still exists with the PFL/SDI box. Stuck in the same loop. Kelly's suggestion for taking Colorado out as the payer worked to help push some things through, but as soon as I noticed the refund changes with the state and the difference between having the 1099-G entered versus not, I have serious doubts any of my documents/refund are correct.
kelly1231, thanks for this tip. I did this and it worked for me too. I only removed one area that said Colorado. The pauper is still listed as such.
I'm glad Kelly's workaround has worked for several of you. However, we, as customers, shouldn't have to trick the system and potentially file incorrect information.
I've attached two pictures to this thread so others (hopefully TurboTax) understand the problem. This is the continuous loop of "Fix Federal Return" and "Continue" if you do not uncheck the "PFML or SDI" box.
@pnbmartin hey there, I have run into this same issue and after looking at the CO FAMLI website benefits are not subject to state tax, they may still be subject to federal tax. I'm wondering if the reason your refund changed is because they are no longer calculating the federal tax implications for you relating to FAMLI. But maybe I am totally wrong! I keep trying to include the website link from FAMLI for you to review but turbo tax keeps redacting it.
@pnbmartin I'm stuck in the same exact loop of errors. I hope this will get resolved. I'm currently waiting on a representative to call me back (not exactly optimistic).
About the state refund increasing after you removed the 1099-G. Did you see the FAMLI leave tax subtraction option when you were on the Colorado state tax pages? It's near the bottom of the first page of options pertaining to tax subtractions. You have to press "start" and then enter the amount in box 1 of your 1099-G. That way this income is excluded from being taxed on your state refund.
Finally found people with the same issue. I can't file my federal return because of this. I've tried deleting and manually adding the 1099-Gs back in for my wife and I using FAMLI and I elected not to file my Colorado return yet like the support person told me to do. Neither fixed the problem.
My Colorado e-file gave me an alert that the earliest the state will accept it is 2/3, but the support person said 2/11.
I suspect that Intuit's software doesn't realize that Colorado is a state that has PFML now, which is obnoxious if that's the case. I'll give this a few days to fix itself, otherwise I'm switching to another service that hopefully doesn't have the problem
Some additional information/pic, in the state dropdown in the form view, there is what appears to be a "loading circle" which I believe is where the bug is coming from - it is not recognizing that Colorado (or any state) has been entered into that field.
I ended up doing a live chat again with a TurboTax representative and she helped me quite a bit.
Honestly, when I first started entering my taxes, I don't believe the CO FAMLI category was in there for the state taxes, but the rep helped me get back to that and I entered it, which increased the tax return, so I do think that was the hang-up for the state return being lower than it should have.
As for the 1099-G, she advised me to uncheck the box on the top of the "check error" page, which did not uncheck the box in the actual form review page. I asked her if that would be a problem, and she said no. I was not originally confident in unchecking this box on my own, but she was the first one who actually advised me to do it, so I did. That pushed the return through to e-file, and my return was accepted the same day.
I still think there is an issue with the software and we should not have to figure out workarounds, but unchecking the box at the top of the check error page let me move forward.
THE ERROR IS SHOWING UP IN THE FINAL REVIEW TAB
CHOOSE FIX ON THE ERROR PAGE
YOU WILL SEE THE SAME QUESTION TWICE
UNCHECK
THE BOX ON THE TOP OF THE FORM (UNCHECK THE BOX ONLY ABOVE THE FORM)
ONCE IN THE FORM WITH BOX CHECKED
(LEAVE THIS BOX CHECKED)
UNCHECK ONLY THE BOX THAT IS ABOVE THE FORM
YOU WILL SEE IT LEAVES THE BOX THAT IS IN THE FORM CHECKED
ALLOWING YOU TO PROCEED FINISH REVIEW SUCCESSULLY
FINISH AND FILE RETURN
UN CHECK THE BOX ON THE TOP QUESTION
ON THE ACTUAL FORM HTAT IS BELOW LEAVE THE BOX CHECKED
SO ONLY UNCHECK THE TOP BOX
REVIEW AGAIN
FINISH FILE
WHEN YOU GET TO THE ERROR SCREEN AND YOU SEE QUESTION IN TWO PLACES ONCE ON THE ACTUAL FORM AND ONCE ABOVE THE ACTUAL FORM BOTH PLACES YOU HAVE THE OPTION TO CHECK OR UNCHECK THE CHECK MARK BOX
LEAVE THE BOX THAT IS ON THE FORM CHECKED
UNCKECK THE CHECKMARK BOX THAT IS LOCATED ABOVE THE FORM
SO AGAIN DO NOT UNCHECK THE BOX THAT IS LOCATED ON THE ACTUAL FORM
ONLY ABOVE
THANK YOU
The problem is, paid FAMLI leave is taxed federally but not taxed in Colorado. The program isn't recognizing this and adjusting returns based upon the extra income both federally and locally at the state level. There are a lot of people struggling with this question and all we are getting is, well just try to see if it can transmit with no errors..... Personally when I put in my wife's paid FAMLI leave it adjusts my federal refund down by a couple grand (which it should) but also my Colorado refund down by 5 hundred dollars (which it should not). Your end users should not have to explain this to you nor should we have to chase this answer down, when its been the same for two years running.
You actually need to make an entry in your Colorado return to exclude this income.
As you prepare your Colorado return, there is a section in the return entitled Here is the income Colorado Taxes Differently. Scroll down to Miscellaneous and select FAMLI Benefits Received. Make this selection and you should see that refund increase.