Somebody, anybody, I need help. Have you heard of error code Business Rule IND-369-01 ?

[pleasehalp]

I tried to file recently (yes, late) with the "free file fillable form" from the IRS website and I keep getting the IND-369-01 error.  I can't find any answer on the IRS website, the IRS customer service agent couldn't help and transferred me into oblivion.  I got this message on the rejection email :

Here is your error(s):

Issue : Business Rule IND-369-01 - If [NetOperatingLossCarryforwardDeductionStatement] is present in the return, then Schedule 1 (Form 1040), `NetOperatingLossDeductionAmt` must have a value greater than zero.

The following information may help you determine the form at issue:
Field/Xpath: /efile:Return/efile:ReturnData/efile:IRS1040Schedule1/efile:NetOperatingLossDeductionAmt

THE THING IS.... I don't own a business, so I don't know about the "net operating loss". I'm married filing separate and I had $0 income last year (stay at home mom). I'm paying the first time home buyer credit and claiming child credit.

I will really really appreciate any advise/answer you can help me with.  Thank you !!!!

[Anonymous_]

The PDF at the link below may be of some utility.

https://www.irs.gov/pub/irs-utl/Fixing-Your-Business-Rule-Error.pdf

[xmasbaby0]

Filing married filing separately seems like a strange choice for you if you had no income for 2021.   Why are you filing that way?

If you were legally married at the end of 2021 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $25,100 (+$1350 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[dmertz]

You don't have to have a business to have a NOL.  It can also come from moving expenses or theft and casualty losses.

The error implies that there is an explanation statement for a NOL carryforward attached to your tax return.  How it got there is probably not relevant unless you really did have a NOL carryforward from the prior year; check the TurboTax's Carryover Worksheet.

You can remove the explanation statement by either revisiting Business Deductions and Credits -> Net Operating Loss and confirming deletion of the statement or you can delete the explanation statement in forms mode of the CD/Download version of TurboTax or in the Tools section of the online version.

[pleasehalp]

Thank you, I will read it !

[pleasehalp]

Thank you ! I will look into this !

[xmasbaby0]

@pleasehalp What tax software are you using?   It is too late to use online TurboTax.   Are you using the CD/download?   Or have you been using free tax software from the IRS site?   No one can see your screen or your information, so we can only guess at possible mistakes you could be making.  

[pleasehalp]

I'm aware it is better to file together, except my husband is not a US citizen (I am) and was not a US resident until recently and he lives abroad, he barely became a US resident recently this year so it won't apply for the 2021 year taxes if I'm correct. Next year we will file together and deal with the beauty of his double taxation. Thanks for your input !

[fanfare · Accepted solution]

You have somehow entered NetOperatingLossCarryforwardDeduction Explanation Statement and you must get rid of it.

Otherwise you will have to file on paper via US Mail, without that explanation statement, which is irrelevant.

@pleasehalp 

[pleasehalp]

I want to thank everyone that tried to help me, I really appreciate your time and effort. I changed my income from $0 to $2k  (in the wages line of the 1040) which is the amount I made for the few months I worked the prior year; I had considered it irrelevant since it was a very little amount but I had gotten a W2 for it so I added it and the document was accepted.

[xmasbaby0]

@pleasehalp Going forward....no W-2 is "irrelevant" if you are filing a tax return.   If you are entering income on a tax return you have to include all of your income, even W-2's for amounts you think are small.