IRS Guidance - E-filing Returns With $0 AGI Due to Unemployment Exclusion

A diagnostic error exists in the 2020 Taxx Savage Pro Desktop, preventing the e-filing of certain returns, especially those returns whose single income source is Unemployment Compensation excluded from income in order for the return ends up being blank. For the return to be accepted, there are guidelines issued by the IRS, that should be followed by the preparers before transmitting these returns: 

Open the return in Taxx Savage Pro Desktop then: 

Add a $1 Capital Gain entry on Schedule D 

• Go to the Main Menu of the tax return (Form 1040) 
• From the menu, select Income 
• Proceed to Capital Gain/Loss (Schedule D) 
• Select Other 
• Then Additional Capital Gains Distributions - DEnter $1 

Add a -$1 Other Income entry on Schedule 1 with the description BR1 

• Go to the Main Menu of the tax return (Form 1040) 
• From the menu select Income 
• Proceed to Other Income (W-2G,2555) 
• Then to Other Income 
• Select New: 
  • Description of Other Income- Enter BR1 
  • Amount of Other Income - Enter -1 
  • Is this EARNED income <Y/N>? - Leave at N 

Run a Production Detail Report for a list of returns containing this diagnostic error: 

• Go to the Quick Menu of Taxx Savage Pro 
• From the menu, select Reports 
• Then Additional Reports Menu 
• And lastly Production Detail Report 

After saving the report, sort it by the AGI column. Returns with $0 AGI may have the diagnostic error.