Turbo Tax rejected my return. I was allowed to contribute $37000 using 457(b) special “last 3-year catch-up” deferral, 2x the $18500. How do I fix this problem?

[noreenme]

After many frustrating hours I did what Fred C suggested and changed my employer to state “yes” and my return was submitted. Hopefully it will not be rejected because I am leaving town in the morning. Thank you Fred!!!

[NoMoreTT]

Already tried that - still won't accept it. Did you contribute more than $24,500?

[thomas-taylor]

Yes - $37,000 (3 year catch up).

[NoMoreTT]

Wow! Not sure why it worked for you - I just retried it and ours was rejected again.

[dogfire79]

Well at least I now know that I am not alone in this frustrating situation.

After researching the $37000 issue with the IRS and finding that it is very cut and dry on their website and should be allowed. I then spent almost 2 hours on the phone with a customer rep and her supervisor, then finally with a Turbotax CPA. Only after speaking with the CPA did I find that they had acknowledged the problem and it would be fixed. But he was not sure if it would be before the April 15th deadline.

Now that I have found this thread I at least know that tomorrow (April 12th) there should be a fix in Turbotax for this problem. Unfortunately if it is not there tomorrow then for the first time in almost 20 years I will be forced to paper file.

I know this much... I've used Turbotax since 2000 and have recommended it to many friends. But after experiencing this problem this year, Turbotax may not be my choice for filing my taxes in 2020. And if the supposed fix to be available tomorrow does not work then Turbotax will not be my choice for 2020.

[FredC]

In my hours of frustration with Turbotax, I bought and downloaded the HR Block Deluxe software. Although the interface was less attractive than TurboTax, the most critical issue was that the HR Block  software also had the same issue as TurboTax. It complained that my $24500 contribution to 457(b) was over the allowable limit, which is clearly not, and worse, it added $24500 outright to my adjusted gross income!!!! I wonder if both platforms have the same programmers.

[NoMoreTT]

That's interesting! This is not a new deduction - not sure why the confusion this year?

FredC - I am still trying to clarify that your return was finally accepted by TurboTax after you checked Yes on whether your employer was a government? Was your contribution $24,500 or $37,000?

They did an update on 4-4-19 for the 6K over 50 catch-up contribution but the rest of us contributed 36-37K for the Last three year catch-up allowance. That one has still not been fixed as far as I can tell so I am curious which one you did that your return was accepted?

[FredC]

My contribution was $24500 and yes our plan was governmental

[NoMoreTT]

Okay - thanks for the clarification...sounds like they fixed one issue on 4-4 but it's the second issue that is still blocking the rest of us from e-filing. Will see what tomorrow's update does - hopefully they got enough people complaining that they will correct their software!

[ffkellymo]

Are you kidding me! I need to finish my taxes tonight as I'm out of town until Monday night and am having the same issue with my contributions being over the $24,500 because I'm doing the catch up. So it'll be fixed tomorrow?

[NoMoreTT]

I do not know - Turbo Tax says that they will issue an update on 4-12-19 to fix the error regarding 457b contributions up to $37K but right now, there are a LOT of people who are very upset at having to wait until 4-12 to file or print/mail their returns! The lack of response from Turbo Tax, to an issue that was identified to them almost two weeks ago, has been abysmal and unprofessional! We shall see what tomorrow brings...

[bpsjazz]

The representative who help me was courteous and professional.  But I told him I expected a letter of apology from Management.  Without that, and a reasonable assurance that this will not happen next year, how can TurboTax expect to keep me as a customer?  If I wanted to file paper, I could just do that without them.  E-file is the reason I buy the Premier product.  Ever heard of H&R Block?

[NoMoreTT]

Yay! Just e-filed my return! After almost two weeks of all of us explaining the issue to Turbo Tax, they finally decided to listen to us and issued a fix on 4-11-19 (now that half the people on this site probably got frustrated and printed/mailed their returns).

[thomas-taylor]

I indeed mailed my return - but am happy to have contributed actively in the discussion that perhaps led to Turbo Tax changing their position and providing a much needed solution.  Congratulations to all the 3 year catch-up $37,000 contributors who are filing electronically today!

[Bighead911]

my call was dropped while being helped