The IRS has a processing issue that is triggering Schedule C, line 3, Gross Receipts Less Returns Allowances, reject incorrectly.

This is an update issue on the IRS side, so you will need to check back periodically for TurboTax program updates.

I know that the IRS's E-file was down or under updating for Business forms. I am not sure if that has anything to do with it? But at this point, you would just need to follow the direction of the IRS and fix the rejected return accordingly.

Please see the TurboTax FAQ below for instructions:

How do I fix a rejected return?

I haven't fixed it in TurboTax because the issue is on the IRS side.  We will have to wait for them to make a fix to their efile system.  Per a message received from TurboTax the IRS fix is expected in mid-March.

Do you intend to file your 2020 Federal 1040 tax return and do you expect to report some or all of the portion of the Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return?  Please clarify.

If this is the case, after the IRS processing issue is resolved, your Recovery Rebate Credit will be available throughout the remainder of the tax season.

@LadyGourmet I could kiss you haha. It will take a few days to know if my return has been officially accepted, but this didn't result in an immediate rejection like the last few times. Thank you for posting the link and for confirming the issue was really with the IRS. 

For the sake of putting the information in more places the "hack" is essentially to modify your Schedule C form to remove any Rebates and Refunds listed under the income section and add them instead to the expenses section under Miscellaneous Expenses. Your net income should be the same after this change. 

See the link in LadyGourmet's post above if you want to see it explained in a little more detail by an "Employee Tax Expert" who has more tax cred than me. 🙂