EFile rejected with code R0000-058-01. This appears to be a problem with form 7206. Any timeline for when this will be fixed in the desktop version ?

[stevewhelan]

As an addendum to the above. The cause of the rejection by the IRS is not due to multiple 7206 forms. It is due to ANY Sch C related 7206 Form. So if you can legitimately attach a K-1 related form 7206 and no Sch C 7206 you will have no problem filing. However if you try to attach ANY Sch C related 7206 form at this time your filing will be rejected by the IRS. This problem is not due to multiple 7206 forms it is due to attaching ANY Sch C Form 7206. This problem will persist until TT fixes the problem, if it does so by the filing deadline, and they have explicitly said that that is not likely. So if your if you need to file a 7206 related to Sch C, you only choice is to file by mail. Even then there is no guarantee that the entries of the paper 7206 are actually correct.  So much for TT's 100% accuracy guarantee!

[diversion]

I have only one 7206 and it is part of a K-1.  Rejected as of 4-5-24.

[jknr]

update for anyone curious:

Refund request denied (of course) - apparently in the eyes of the terms of service, paying for Online means I'm satisfied with my experience and ineligible for a refund. I'm not even going to attempt to make sense of that right now.

[stevewhelan]

Did you follow the steps listed by Deborahwrites1. She claims to have had a return with a K-1 7206 only accepted by the IRS?

[SS77771]

That's preposterous.  With the Online version, there is no way to see your draft return until after you've paid. Thus, I was unable to see that TT messed up until after the payment was made.  I may file a dispute with my credit card company if my refund request is denied.  TT admits in writing that their product is faulty and that they likely won't be able to correct it before the tax filing deadline - therefore, they have no reasonable grounds to deny a refund.

[d2hunter]

@Deborahwrites1  Bless you. Your process fixed my problem. Thank you for writing down the details of how you did this.

[Alpaca]

I ditto the comments made just above by SteveWhelan and the following quote on another chat..." I tried deleting both Sch C and 7206 and the redoing the interview and according to them you still get rejection.."  I did the same and received the same results - 2 times and  2 more rejections.  I have a Sch C and form 7206 is required so unless I want to forgo the taxes saved by claiming the medical insurance on my Sch C and just include it on my itemized deductions, I'm at a loss as to what else to try.  My state was rejected also because the Fed wasn't accepted.  I'm going to give TT a couple more days to work on issue before the filing deadline so I don't have to file manually.  Maybe a miracle will happen.

[njginn]

I am using the Desktop version and need to file a form 7206 with Sch C.

Printing and mailing 60+ page paper returns is not appealing.

If I file for an automatic extension, what is the liklihood that TT will pursue fixing this issue so that we can efile sometime in the next 6 months?

[stevewhelan]

WORK AROUND FOUND FOR FILING ERROR DUE TO FORM 7206 (SCH C)

I have found a work around that was filed and accepted by the IRS. Below are step by step instructions how to delele the problematic Form 7206 which is associated with Sch C to get the filing accepted by the IRS. First let me say this is only recommended for those where Form 7206 calculation results in no allowed deduction (line 14). If you have a deduction then it will be better to file in paper form per TT suggestion unless you want to forego the deduction. As mentioned previously any attempt to delete Form 7206 (Sch C) in the Forms list will not work because the form is instantly regenerated. Here are instructions to get around this and delete the form and get your filing accepted:

1. Click on Personal Deductions and Credits
2. Go to Medical section
3. Click on Affordable Care Act (Form 1095-A)
4. Click on Edit next to the amount that was calculated from your previous Form 1095-A entries. If you have not entered that information do it now.
5. Click continue at the end of the 1095-A entries.
6. The next screen has some checkboxes: uncheck the box "I'm self employed and bought a Marketplace plan."
7. Continue to Click continue a the bottom of the screen until you exit the Personal deductions section.

8. The Form 7206 will now be deleted which should allow you to get your return accept by the IRS.

Note this is a workaround and not technically 100% accurate in my case, as I actually did buy health insurance on the marketplace and I am self employed. However, the Form 7206 form calculations in my case result in no allowable deduction (line 14). Therefore removing that form as above had no effect on the total tax due. You can easily check if this is true in your case by noting the TT total due (at the top of the screen) before and after making the changes above. If there is no difference the above is likely to be accepted by the IRS since it has not impact on anything tangible. Failing this a paper filing or waiting for TT to do their job  (if the unlikely event they do so in time) are the only other options. See Deborahwrite1 if you have a Form 7206 related to Sch K-1, she has a partial solution for that case.

[napadave]

Thanks for the work around. I have no 1095-A, so it did not work, any other ideas? There is something else weird, TT had created a empty K-1 for and S corp, with a 7206 attached

[stevewhelan]

This problem has 2 flavors: The work around I described is for Form 7206 related to a Sch C.  If you have a Form 7206 related to a Sch K-1 then @Deborahwrites1 has a step by step how to remove unwanted Form 7203. In your case if you do not need a Sch K-1 then delete it and well as the associated Form 7206 by going to the Forms tab at the top of the TT main pages (which produces a list of your forms), then click on the form and delete it using the button on the bottom of the screen. If you find that the page regenerates, then delete Form 7206 first and then Sck K-1. If that does not delete it go to the Personal Income tab and click on the K-1 entry. Then follow the steps and delete any businesses that should not be there. Then check again if the Form 7206 is gone and if not delete it.  Once you deleted the Form 7206 you should be able to successfully file. If you do need a Sch K-1 Form 7206 Deborah's step by step list will help. 

[DawnC]

Form 7206 can be e-filed with Schedule C @njginn 

[Alpaca]

to DawnC:  how can you say the 7206 form can be e-filed with a schedule C.  This scenario is what is causing many of these the rejects that are being discussed.  Please elaborate as to how you have done it or why you say that. I have to submit a 7206 form because it does benefit my schedule C.

[ashland_marsh-fr]

@DawnC   Sorry DawnC...unless you tell us specifically that TT has fixed the desktop e-file problem with Form 7206 and Schedule C (which continues to reject as of this morning 4/6/2024) or provide a clear workaround allowing us to submit Form 7206 for a line 14 deduction, I think you are in error.   Can you at least confirm TT is working on this problem or has TT given up?   

[SS77771]

@dk82 If I could reach through the computer screen and kiss you, I would.  This is exactly the workaround I needed.  It works for me (using TT Online)!

The problem apparently is that pesky "I'm self-employed and bought a Marketplace plan" box.  I unchecked that box, and it still generates a Form 8962, so all good there.  Then I went to Wages & Income -> Self Employment -> Add Expenses -> Health Insurance Premiums and entered the total premiums paid, which generated a CORRECT (hallelujah!) Form 7206 and restored the deduction to Schedule 1, Line 17.  And it did not double-deduct. (the Turbotax warning not enter Marketplace premiums in that spot assumes you checked the "I'm self-employed and bought a Marketplace plan" box on the 1095-A page .. so long as that box is unchecked, there is apparently nothing wrong with entering it via Wages & Income -> Self Employment -> Add Expenses -> Health Insurance Premiums.)  I did a side-by-side, line-by-line comparison of my prior draft return and the new draft return, and everything is now correct!

This workaround also solved another problem I had.  TT was rounding each monthly premium on my 1095-A, and then adding the total of the monthly rounded premiums, resulting in a lost $3 deduction on Schedule 1, Line 17 (the amount was $3 less than the actual total annual premiums).  Now that the total on Schedule 1, Line 17 is correct (with that extra $3 deduction), my total tax liability decreased by $1. 🙂

Thank you for the workaround!  I can finally file my taxes, just in time.