14916: 1040 - EF Message 5380

EF Message 5380 states:

EXCESS WITHHOLDING: The amount of federal income tax withheld from Forms W-2 and 1099 must be less than the total of:

-     Wages, salaries, tips, etc.
-     Taxable interest
-     Ordinary dividends
-     Either IRA distributions or the taxable amount of IRA distributions
-     Either pensions and annuities or the taxable amount of pensions and annuities
-     Unemployment compensation
-     Social security benefits
-     All "other income" amounts
-     "Total gross receipts" from all Schedules C

Unless one of the following is true:

-     Capital gains amount is a non-zero amount
-     Other gains are a non-zero amount
-     Income from rental real estate, royalties, partnerships, S corporations, trusts, etc., is a non-zero amount
-     Farm income is a non-zero amount
-     Combat pay has been excluded from wages

To clear this message, the total tax withheld must be less than the total income on the return unless the following conditions are present in the return.

Condition	Drake17 and prior	Drake18	Drake19	Drake20 and future
Capital Gain or (Loss) must have a non-zero value	1040, line 13	Schedule 1, line 13	Form 1040, line 6	Form 1040, line  7
Other Gain or (Loss) must have a non-zero value	1040, line 14	Schedule 1, line 14	Schedule 1, line 4	Schedule 1, line 4
Rental Real Estate must have a non-zero value	1040, line 17	Schedule 1, line 17	Schedule 1, line 5	Schedule 1, line 5
Farm Income or (Loss) must have a non-zero value	1040, line 18	Schedule 1, line 18	Schedule 1, line 6	Schedule 1, line 6
Combat Pay has been excluded from wages	Does not flow to return	Does not flow to return	Does not flow to return	Does not flow to return

The most common occurrence of this EF Message is when a return contains Sick Pay, Payments from Notice 2014-7, and a 1040NR with W2 Income Excluded by one of the various Tax Treaties. For information on these specific occurrences, see the Related Links below.

Note: If this EF Message occurs on your return, and none of the above conditions are present, you will have to paper file the return.