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14916: 1040 - EF Message 5380


Drake Tax

How do I clear red message 5380 on an individual return?

 

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
     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. 



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