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]

Yes I agree TT has gone downhill. There is a few things you could try..

1. Make sure all the extra Form 7206  are deleted. You may have to uncheck boxmin the 1095-A entry for Buying Health Uns through business to delete the 7206.

2. If your tax situation allows try to file all your medical premium information *incl 1095-A) applied only to your Sch K-1 and delete the Sch C form 7206 (this one is the most problematic for filing). 

3. If premium payments associated with the Sch C are not 1095-A related you could add the deduction as a Sch C expense deduction under Medical Expense, some people have had success with the 7206 that is prdduced with no Marketplace included.

TT has indicated they don't think this will be fixed before the deadline, so if the above does not work your  only option remaining is to print and mail  :(

[stevewhelan]

Glad it worked. Hopefully TT can get their sh.. together by next year!

[JPC_WYZ]

@ethanfl79 

No you aren't screwed. If you are self-employed and bought your health insurance through one of the ACA Healthcare Exchanges/Marketplace, you need to check "I'm self-employed and bought a Marketplace plan" and then complete Form 1095-A from which you will receive your tax deduction. Be sure not to also include your health insurance premiums on your Schedule C - this is "double-dipping" and if it were picked up in an audit you would owe the additional taxes plus penalties. 

You should delete any Form 7206s that are attached to Schedule K-1s in your return. Follow the instructions closely in previous posts and you should be able to file electronically. 

[winstonwolf]

If I uncheck the I am self employed, I am no longer able to deduct the insurance premiums, and my taxes go up.

I only have refunds for fed and state, no tax due, would filing an extension work?

What are some alternatives to Turbo Tax?

[JPC_WYZ]

@winstonwolf 

If you are self-employed, do not uncheck that checkbox if you are qualified to deduct health insurance premiums. IMO, that was incorrect advise. Please go back through all the posts to see what you need to do. You can look for the posts I made in the last 24hours for examples and my opinion on how to handle this ussue. 

[SS77771]

With respect to the Online edition (I can't speak for desktop version), the workaround that I posted about on Saturday, in my case, absolutely did NOT double-dip (insert Seinfeld joke here).

To repeat what I posted on Saturday: "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 repeat, the source of the problem is the "I'm self-employed and bought a Marketplace plan" box.  Unchecking that box fixed all of my problems, and it still generates Form 8962.  And, in my case, by entering my total premiums paid at Wages & Income -> Self Employment -> Add Expenses -> Health Insurance Premiums, it did not double-dip.  Yes, it carried over that amount to Schedule 1, Line 17, and yes it generated a CORRECT Form 7206.  But it DID NOT reduce my net profit on my Schedule C - in fact, it did not get reported on my Schedule C at all.  Trust me, I was worried about double-dipping just as you say, so I went over my return line-by-line before filing.  I realize it may be counterintuitive and one would think that it would report to Schedule C and reduce net profit, but I assure you, it did not do so in my case (perhaps another TT glitch - but one that I was grateful for).  Before disregarding this workaround as a double-dip, I suggest you at least try it and see whether it goes onto your Schedule C on your end.  In my case, it did not go on Schedule C at all - it only reported it on Schedule 1, Line 17 and generated a CORRECT 8962 and 7206.

[rblanco2]

I have this issue and NO Form 7206.  Is it associated with Any PDFs created by Turbotax?

[stevewhelan]

Go to the Forms view in TT at the top the page. This will produce a list of the forms in your return. Look under Sch C and Sch K-1 for Form 7206. Delete these forms by clicking on them and then use the delete button at the bottom of the screen. In some cases this form automatically regenerates. If it does go to the Deductions section and find the Form 1095-A entry under the Medical section. Click on the link then click on the link to edit your form 1095-A. Then press continue at the bottom of the page. You will get a list of check boxes. Uncheck the box "Do you have health insurance paid by wages from your business" (or something like that).  This should delete the Form 7206 for Sch C. Double check it is deleted in the Forms list and delete it if it still there. This should allow your return to be accepted.

[Cynthiad66]

The development team has given us an update with regard to customers who are receiving the Reject Code R0000-058-01 when trying to electronically file their return. The resolution to this situation is taking longer than expected and it may not be resolved before the tax filing deadline.

For reference, this information is from the IRS Instructions for Form 7206:Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. However, if any of the following apply, you must use Form 7206.

• You had more than one source of income subject to self-employment tax.
• You file Form 2555.
• You are using amounts paid for qualified long-term care insurance to figure out the deduction.

In order proceed and get your return filed in a timely manner, please follow this advice:

1 - If you are required to include Form 7206 as a part of your tax return based on the information above, then you need to print and mail your return. Electronic filing will not be an option if the reject code persists.

2 - If you are not required to include Form 7206 as part of your tax return, then you can attempt to delete Form 7206 and try electronically filing your return once again. If the form cannot be deleted or you still get the reject code, then you need to print and mail your return.

Use the steps in the following TurboTax help articles to delete Form 7206:

How do I view and delete forms in TurboTax Online?

How do I delete a tax form in TurboTax Desktop (Windows or Mac)? (edited)

@rblanco2 

[le-impot]

@Cynthiad66 :

I ask this of every new TT expert that shows up in this forum, in the hopes that someone someday will answer--so I guess today it's your turn. For background: I was not required to file Form 7206, and TT filled it out anyway and did so incompletely & incorrectly. It would not delete. However, the amount of my self-employed healthcare deduction on Schedule 1 was correct. After trying unsuccessfully for weeks to get some help from TT, and since the return was otherwise correct, I  decided back on March 10th to try to efile and see if I got the error most people have reported. I did not, and my return was accepted. Can you tell me what this indicates? If you search the distant past in this forum, you'll find a few other people referencing a brief window when apparently returns were being accepted. Why would that be? Is it possible that the erroneous 7206 wasn't transmitted with my return? And if not, since there were apparently some unknown number of returns filed during this time, has TT been in communication with the IRS to inform them that the software contained an error that caused an unnecessary and incorrect form to be included, and that it is not taxpayer error?

I would very much appreciate answers to these questions.

[CatinaT1]

The community is not a place to get those answers. The software developers and programmers are the only ones that would maybe have answers. The employee Experts on this forum are not TurboTax Experts, but Tax Experts. We do not know how the developer and programmers do their jobs or have privy to that information. We are Tax Experts and answer tax related questions. Due to the vast array of questions asked in the community, we do have knowledge of how things are entered into TurboTax and can answer product or support type of questions, but our main job is to assist TurboTax users with their tax related questions.

While I can sympathize with your frustrations, we (Community Tax Experts) simply don't have the information you are seeking. 

[stevewhelan]

The answer is there are multiple possible Form 7206s that can get included in your tax return. Some get included properly and some by error becasue they are not deleted if you change an entry. The two main Form 7206s are associated with Sch K-1 and Sch C. The Form 7206 is to deduct and declare Medical Insurance premiums where the source of payment is from a business. Sch K-1 Form 7206 alone seem to be accepted by the IRS. Sch C Form 7206 seem to be accepted if there is no 1095-A form in your return (i.e. you did not buy Marketplace insurance). So if you enter the premiums as a business expense that seems to work. If you enter 1095-A paid by Sch C this causes a problem and the filing is rejected. Deleting extra Form 7206 can be tricky because you have to uncheck the "ins pid by business income" box hidden deep in the 1095-A form entry and not visible unless you try to edit the form and continue to the check boxes. So they may or may not be an error in the tax return that you filed depending on if you deleted entries just to get to file and/or consequently you did not file something you should have. For example if you deleted Form 1095-A that will be a problem if you actually had a Marketplace plan. However if you did buy a Marketplace plan with income from business income but the Form 7206 calculated zero allowed deduction, then deleting 7206 will allow your filing to be accepted. So in summary no straight forward answer TT just released advise (belatedly) that they do not expect these problems to be fixed before the filing deadline. They do not seem to have done anything more than read some of these forum comments so far. Pretty lame!

[le-impot]

Thank you @CatinaT1 -- that alone is more information than anyone has bothered to respond with to date. And oh, how I would love to be able to relate the problems with my return to the developers and coders, but apparently there is a deliberate policy at Intuit to keep them and the end-users as far apart as possible...

[le-impot]

@stevewhelan 

Thanks for actually trying to make sense of this mess! Not to throw a wrench into your meticulously described analysis of the many flavors of this TT debacle, but my return--which was accepted by efile--unfortunately doesn't fit neatly into any of the categories you described. I had a Schedule C, and a marketplace plan with 1095-A, and met none of the conditions that require a 7206 to be filed. I deleted nothing. The unnecessary 7206 had an erroneously blank Line 1 along with all of the associated mistakes throughout the remainder of  that form, culminating in an entry of $0 on Line 14. But the amount of my deduction on Schedule 1 Line 17 was correct, and since Form 7206 wasn't required for my return in the first place I decided to try efiling, and never got an error.

Regardless of how that happened, my main concern at this point is whether--even in the absence of an efiling error--that incorrect & unnecessary 7206 was included in my return. My hope is it wasn't, but at this point--given Intuit's policy of stonewalling to us mere customers--I don't think I'll ever know. My best hope is to save a copy of this entire forum to show the IRS should they ever come calling, I order to be able to demonstrate that this was a known problem with the software and not some attempt to cheat. Aaaargh.

[stevewhelan]

My case was similar to yours and I got it accepted.  In my case I had a Sch C and 1095-A. When entering the later I clicked the check box "I bought insurance with income from my business" for the Sch C. business. This creates a form 7206 with errors that cannot be filed. However in my case, the 7206 resulted in no allowable deduction. So I decided to delete the form. However you cannot delete it from the Forms list as it regenerates instantly. You have to go into the Personal Deductions entry for 1095-A click to enter 1095-A data and then hit continue to get to the checkboxes. Unchecking the "Did you by ins. w/ biz income"  (or not checking this box in the first place) will delete the problem 7206 without you have to go back to the Forms list to delete it. (Which is what you may have done in your case). As an aside I also had a Sch K-1 without an associated 7206 but this does not create any problem. You can see what you filed ith the IRS by going into TT again and proceding to the File My Return step this will allow you to print a pdf of what you filed with IRS. Of course TT won't let you file again, so don't worry about messing up. The pdf will have all the forms submitted to the IRS so you check it there.