IRS Tax Return Reject Code F1040-071-05

conectier- Code F1040-071-05

The reject code F1040-071-05 typically means that the tax withholding amount entered was greater than your total income. This can occur if you mistakenly entered an incorrect amount on your tax document or if you had no income or very low income during the tax year.

conectier- Code F1040-071-05

To resolve this issue F1040-071-05, you should review your tax return and verify that all income and tax withholding amounts were entered properly. If you find an error, you can correct it and send it back to the IRS. If you had no income or very low income during the tax year, you may need to file an amended return or contact the IRS to discuss your situation.

Understanding Tax Withholding Amount

Before solving the reject code F1040-071-05, it is recommended that you understand what the tax withholding amount is. Understanding tax withholding amounts will help you in solving the error easily and quickly. 

  • Withholding tax is a stated amount of income tax withheld by an employer from an employee’s paycheck.
  • The employer submits the withholding tax straight to the IRS on behalf of the employee.
  • The money collected is credited against the employee’s annual income tax bill.
  • If too much is withheld, the employee receives a tax refund —if too little is withheld, the employee may have to pay the IRS.
  • Withholding tax is withheld from U.S. residents and non-U.S. residents who earn money from U.S. sources.

How do you solve the Reject Code F1040-071-05 in TaxSlayer ProWeb?

The IRS has issued directions for solving the Reject Code F1040-071-05. For the tax document to be accepted, IRS advises that taxpayers take the following steps before refiling tax returns:

Perform the following steps in TaxSlayer ProWeb

This is for Schedule D

  • Navigate to Federal Section
  • Then Income 
  • After that, Capital Gains and Losses 
  • Look for Additional Capital Gains Distributions
  • Enter the lowest amount for e.g $1 where you see Additional Capital Gains Distributions 

This step is for Schedule 1 with category BR1

  • Go to Federal Section
  • After that, the Income 
  • Then Less common income 
  • Look for other earnings not entered elsewhere
  • Type BR1 for the category of other income
  • Type -1 in the number of other revenue fields.

Note: Ensure not to check the earned income box

For a list of tax papers rejected with reject code F1040-071-05, select the rejected list from the menu that you see on the main screen. In some cases, you may have to print and return your tax papers if the error is not being accepted through the e-filing application.

Reject code F1040-071-05 is when the IRS rejects your tax return as the tax Withholding Amount is higher than the sum of Income. You can follow the above fixing method if you are using TaxSlayer ProWeb. Once you have corrected this, proceed with the refiling process. You may resubmit your tax return at no extra cost as many times as necessary until it is sanctioned.

Frequently Asked Questions

What is Reject Code F1040 071 05?

Reject code F1040 071 05 is when your tax withholding amount is greater than your total income earned.

How do you fix Reject Code F1040 071 05?

You need to enter the correct income earned and the correct tax withholding amount. 

What is business rule F1040-071-05?

Income is low, but tax withholding is being claimed.

Can I refile after receiving the F1040-071-05 error code?

Yes, you can resubmit after making the necessary amendments.

Does the IRS provide any help with the IRS reject code f1040-071-05?

Yes, you can check the website or contact them to seek guidance. 

What happens when the tax withholding amount is greater than the income?

The IRS will provide a tax refund to the employee

What is the maximum withholding you can claim?

On form W 4 IRS you can claim between 0 and 3 allowances, depending on what you’re entitled to.

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