What does a reject code TY25_NY_IT398 mean? No explanation shows up and no fix is allowed.

[LeticiaF1]

Your tax return has not been e-filed due to a pending product update related to New York's conformity with the Federal Depreciation Allowance. This update was released January 31st, 2026. 

Please log in to ensure your product has been updated (online versions update automatically). Once updated, review for any applicable changes, complete a final review, and resubmit your return.

If you are using TurboTax Desktop make sure all updates have been run on your program. You can do this by clicking on "Online" in the black bar across the top of your TurboTax screen. And then select "Check for Updates".

If you have any additional questions or information regarding this please return to TurboTax Community and we would be glad to help.

[MONSHY]

Can someone help me fix  Error TY25_NY_IT398 please?

[LenaH]

New York Form IT-398 reconciles state and federal depreciation amounts. TurboTax has recently updated this state form.  

If using TurboTax Online, please resubmit your return. If using TurboTax Desktop, please update the software as updates are not automatic, and then proceed to submit your return. 

If your return continues to be rejected, please let us know and we can assist you further. 

@MONSHY 

[TravisTractor]

I submitted my New York State return eight times using the Desktop Home & Business version, and it was rejected each time—without any warnings from the software.

Today, I resolved the issue by downloading the latest New York State update (using Check for Updates). I then reopened the state return and selected the option to go through the state forms again (not the “go through all forms” option), which forced a recalculation. After doing this, I resubmitted the return and it was accepted.