using 2021 version getting update required during e-file

[mahvisions]

Using the 2021 home&biz verson doing my daughters federal tax. Everything is fine and the audit is at 0 but when i attempt the federal e-file and submit I get the error message " Tax Program Update.  There is an update available for your tax program.  Before you can file electronically, youmust get this update."  Turbotax shows no update and i cannot file my daughters return.

[SteamTrain]

@mahvisions 

Filing is NOT active now....and not all of the tax forms have been finalized in the software yet...SO DO NOT FILE NOW.

The TTX software "might" allow you to file on or after 6 Jan (IF she only has simple forms in her tax return).

BUT

....if you do, it will just sit on a TTX server until the IRS starts pulling files from those servers towards the end of January....(.or maybe even February, since the IRS hasn't announced when they will actually start yet)

IF you file before the IRS actually starts taking files...you cannot get it back to make any corrections that you may discover when companies, Banks, financial institutions etc. send out their tax forms.... if you file early, you will have to wait for the IRS to either Accept or Reject whatever you initially filed.

....If the IRS accepts the file then you will be stuck going thru the messy "Amendment" process, that won't be allowed to be done for several weeks.  IF they Reject the original filing, only then can you simply correct whatever needs correcting, and re-file.

Do Not file any tax returns before February...March is safer.  (yeah...personal opinion)

[mahvisions]

Thank You for the quick reply.  Yes, her return is actually a short form.  She is only 11 years old, but as part of my SSDI gets a small stipend.  I am not really concerned about hers sitting and waiting to be pulled.  I just want to get it out of the way well before i start to work on my return.  

I appreciate your warning, however, with her return i seriously doubt i would have any reason to rework it.  SSA has sent both her and my 1099R so i am aware of the corretness of the only information i need enter for her.

Regards

,Mike

Mahvisions

[Critter-3]

Try again in a couple of days ... if you pass the REVIEW tab then you can continue to the FILE tab and complete all 3 steps. 

[SteamTrain]

Just make absolutely sure that in the Personal Info section, after entering the child's name you indicated that someone else can and will claim her for 2021.

[xmasbaby0]

Your child is only 11?   If the Social Security is her only income she does not have to file a tax return at all.   Someday if she has some other income from a job, etc. then her SSA1099 should go on her own tax return (her SSA1099 never goes on your own return) but for now, she does not even need to file a return.

[mahvisions]

Well, there is a good reason that i have her file her own taxes, actually 2.

Reason 1.  If i did not i would file her as a dependant on my return and that would push me into higher brackets.  When i started doing this years ago, i would make multiple names trying to see which one gave us a better advantage (return).  So what i do is have a percentage of her SSDI being taken out as a volentary FWT and i do the same on mine.  This works out with both of us getting a return on what i call the 13th month and not pay IRS.    I have her file as being claimed by someone else and i claim her on mine.  She make such a small amount that all of her FWT is returned to her savings account and i am lowered enough that i get a return as well.

Reason2:  When she was 8, i worked with several other principal on a potential business venture.  We would share in the ownership.  I worked out an agreement with the others that i would work for free if they agreed that my daughter would be the owner instead of me.  They agreed as i was the technical lead defining the project.  Because of the potential for her to gain an income by 9 years old, i began doing her taxes and establishing  her in the IRS system.  Many years ago my mother was the Deputy Districtic Director at Social Security HQ in Baltimore and i was fortunate to learn some tricks with SSA.  LOL

[LM2099]

Tech us @mahvisions noble Skywalker.  Do you have a YouTube channel?  I'm going to file my son's SSA separately.  I've never thought of this, good this I stumbled on this thread when I had the same error

 Your transmission didn't go through
We could not e-file your return for the following reason:
The Intuit Electronic Filing Center is not yet accepting returns for tax year 2021.

[xmasbaby0]

I worry when people ask how soon they can file and want to file the minute they can, because experience here has shown that many of those same people will be back in this forum in a few weeks asking how to amend.  Right now it has been taking the IRS more than six months to process amended returns.  Filing too soon could mean you are setting yourself up for months of aggravation.

 You can fall for the marketing ploy that will allow you to e-file early if you want to—-but be aware that your e-file will just sit on a server and if you discover that you need to make any changes you will not be able to.   You cannot change or add anything while your return is in pending on the server.   You have to wait until the IRS ether accepts or rejects it much later in January or early February.    If it is rejected you can fix it; if it is accepted with your mistakes you have to wait for it to be processed and go through the lengthy process of amending.

  You still need your 2021 W-2's and any 1099's that will show your income for 2021.    Those will not be issued until late January or early February. 

The tax forms are not ready yet. The software still needs lots of updates.  Go to the REVIEW tab to see which forms in your return are incomplete and the estimated dates they will be ready (dates always subject to change) and sign up for the email alerts if you wish.  

 .   

 Being in a hurry to file and get a refund is never a good idea---it leads to filing incorrectly without all of your information and to waiting months to amend mistakes that you should not have made in the first place.   Be patient and file correctly when all of your information is in order and the tax forms are ready.

https://ttlc.intuit.com/community/forms/help/irs-forms-availability-table-for-turbotax-individual-pe...

https://ttlc.intuit.com/community/forms/help/state-forms-availability-table-for-turbotax-individual-...

And based on the delays for 2020 refunds I for one do not even want to guess how long the IRS will take to process 2021 returns and send out refunds.   Expect confusion regarding the child tax credit----wait for the letter 6419 they will send you in January that tells you how much of the advance CTC you got because you need to enter that.    And if you got the 3rd EIP in 2021 there will be a letter for that too.  Those amounts need to be entered carefully and correctly.

And…..if you are trying to rush because you get earned income credit or the child tax credit——the PATH act means you cannot get your refund until the end of February at the earliest—so filing early will not get you an early refund.

[LM2099]

Thanks.  Early bird gets the worm for me.  I'm trying to file and credit for my son before my x wife.  That's all I'm trying and worry about.  She gets child support yet I'm the one paying for his education, food and now I stopped paying the mortgage for a house I don't live in.  My believe is if you can't afford to pay for your begotten child then you shouldn't get paid by the other parent that can pay and the child should live with that parent.

[xmasbaby0]

@LM2099 

Are you the custodial parent?  Do you have an agreement with the other parent to allow the other parent to claim them--due to divorce or that you live apart and share custody?  Did one of you sign a Form 8332?

If there is a signed 8332 then the custodial parent retains the right to file as Head of Household, get earned income credit and the childcare credit.  The non-custodial parent gets the child tax credit for children under the age of 17.

As far as the IRS is concerned, the custodial parent is the one with whom the child spent the most nights during the tax year--at least 183 nights.

[LM2099]

I don't want to hijack this OP's thread but:

For the last 5 tax years no I'm not the CP. I always filled with my son in my taxes I've always done them as early as possible with my last pay stubs and my last earnings statements, only recently I didn't file early listening to Biden's stupid promises to file taxes in February 2021.  I waited and my ex filed early with my son. It's an additional $20k difference.

My plan this year is:

Not to pay her $2.5k mortgage since it's NOT court ordered(not in fam court nor divorce settlement)-I'm already paying my own mortgage

I will continue to pay the $3k a month in child support, of course

I don't care if I have to amend, IRS problem if they take 6 months

Once she is evicted, get my son and family court to make me the CP 🤣 

With the extra mortgage money I will refresh and move back into my house after the foreclosure 🤣

So thank you all for solving my question about the TTX error message  in turning off notifications for this thread

[xmasbaby0]

@LM2099 Here is the information that would be provided to the custodial parent if that parent's e-file is rejected because the non-custodial parent filed first and claimed the children:

Someone else claimed my dependent and my return was rejected

If someone else claimed your dependent already, then your e-filed return will be rejected.  Print, sign and mail your own return which claims your dependent.  Mailed returns are processed differently by the IRS.  It will take some time (maybe even up to a year) but eventually the IRS will contact both parties and sort out who could rightfully claim the dependent.  The person who wrongfully claimed the dependent will face repayment of refund $, plus penalties.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent  

[mahvisions]

Yes sdhe is 11 years old.  I began filing her taxes when i divorced her mother back in 2015 and got sole custody.  Her taxes are a simple EZ form.  This year SSA sent the 1099R and i recieved Jan. 5 not at the end of the month.  I have used Turbo tax since 1996 and use to help others and do their taxes for free.  I stopped that around 2010 when my daughter was born.

I understand and except the warnings about potential issues you can have with filking early, however, i may not be an expert level as you and the other experts are but with an EZ form to do and a single 1099R to enter about 3 lines....  Well i have absolutely 0 concern about her return.

Your caution about your ex trying to claim your child deduction i ran into in 2015 when my ex tried and i got a letter from the IRS, but after pointing out to her about the rule of 6 months and the child lived with me for 12....Hmmm that ended that dispute and i have not had her try that move again.

[mahvisions]

wow lm0099, i wish you luck man