Federal Return Accepted, State Rejected Due to Missing Income and Required form? What Should I Do?

[Samian]

I recently filed my federal and state tax returns using TurboTax. My federal return was accepted, but my state return was rejected. The rejection reason states that my state return is missing Form IT-360.1, which is required for my wifes part-year NYC residency.

Heres the situation:

1. The federal return is already accepted by the IRS, but I forgot to include my wife’s income on it.

2. The state return was rejected because Form IT-360.1 (Change of City Resident Status) wasn’t included, which is required because my wife lived in NYC for part of the year.

3. I know I need to file an amended federal return (Form 1040-X) to add my wife’s income, but I’ve read that I can’t amend the federal return until it’s fully processed.

4. Should I wait until the federal amendment is processed before fixing and resubmitting my state return, or can I address the missing form and submit the corrected state return now?

Im worried about mismatches between the federal and state returns if I fix the state now without the federal amendment. Any advice on the best way to handle this situation?

[MindyB]

Yes, you need to wait until the federal return is processed to amend, but you noted the return was accepted, so you can proceed to do that as soon as the 2024 federal amended tax return form 1040-X is available for filing in TurboTax.  Use this tool to check availability of forms, including 1040X: Tax form availability

Since NY didn't accept your first return that was not correct, you should proceed to correct your federal return, then address the missing IT-360.  Attempting to fix the NY return prior to amending the federal 1040 is not advisable, since the starting point for state return's is federal.

Your steps are 1. Correct Federal Return 2. Correct NY.