MN State Tax rejection is looking for 1040A

[jerik-elm]

I took the standard federal deduction, and it appears that turbotax is itemizing my state return. After submitting my state taxes, they were rejected saying my 'mortgage interest and points not reported on federal form 1098'. Since I took the standard deduction, I don't believe this is on my federal tax return.

This the rejection erro:

Description of error:

Your return could not be processed for e-filing due to incorrect or missing information on your Home mortgage interest and points not reported on federal Form 1098.

What needs to be done:
When reporting "Interest paid not reported on a Form 1098 " on your federal return, the name, identification number, address must be completed. Answer "Yes" on the question "Did you buy your home from the recipient and NOT receive a Form 1098" . Enter the Identificstion ID (SSN or EIN) and address of the recipeint. This information will be transferred to Form M1SA of your Minnesota return. Make the necessary changes and re-submit the return electronically. However, if the reject continues, you may want to file this return via U.S. Mail. To file your state return, print it and mail to the appropriate taxing authority.

[huebners · Accepted solution]

I was able to fix the error by deleting all my 1098 mortgage interest data in the federal section.  I then re-entered the information.  When you do this the M1SA form is automatically removed and recreated which allows for it to be updated. 

Also, before you re-enter the mortgage interest information make sure to check if any 1098 forms still exist.  Do this to ensure there are no 1098 forms listed that may be pulling inaccurate information to your returns.   While in your return, click on Tax Tools > Tools (in the black bar at the side of your screen).   Under "Other helpful links" click on Delete a form.  If you scroll through your federal tax forms while in this section you will be able to see any 1098 mortgage forms that were previously created.  If you find any, I would suggest you delete them before re-entering your information.

[jerik-elm]

Thank you, I pretty much went this route working with a turbotax expert. I had to remove my mortgage points that were being itemized on the state return. After zeroing out that field, resubmitted and my return was accepted.  

[huebners]

That's great!  It was definitely a puzzling issue at first.  I ended up re-entering the information because I noticed it had an impact on my state refund.



 

[jimmijansen]

This was also the error that I got. After fixing the error according to their instruction, I was rejected 3 more times after the first. I followed your instruction and resubmitted it for the 5th time, and it worked. THANK YOU SO MUCH for posting this. You saved me $60 for not having to upgrade for the live chat.

[keithgerken]

I also received the error message for rejected state due to form 1098 federal . The correction I was talked through that solved this is to when. It asks if you have a 1098 answer no and enter the actual EIN number from the 1098 form . This worked for me and my state was accepted .