I'm not convinced this is actually a TurboTax problem. I've been using TT for probably 8 years now and have never encountered this specific issue. It's more likely something with your specific state's forms or maybe a temporary server issue. Have you tried just waiting 24 hours and trying again? Sometimes these things resolve themselves when their servers are less busy.

This is definitely a widespread TurboTax issue - I'm a volunteer tax preparer and we've seen dozens of cases like this in the past two weeks. Here's what works: 1. Download your return as a PDF first (save a copy) 2. Log out completely 3. Clear browser cache and cookies 4. Use a different browser if possible 5. Log back in and go directly to the state return section 6. Enter your direct deposit info VERY SLOWLY (literally type each number with a 1-second pause) 7. Wait 15 seconds before clicking continue This has worked for everyone I've helped so far. It's some kind of validation timing issue with their state return processing.

Have you verified which AGI amount you should have used? The IRS has specific guidelines about which figure to use, especially if you filed an amended return last year or received unemployment compensation. Sometimes the AGI line item number changes between tax years, which could potentially cause confusion when entering prior year information.

I would suggest that, rather than waiting for a rejection, you might want to consider filing a superseding return. This is essentially filing a corrected return before the filing deadline, which could possibly be processed more efficiently than waiting for a rejection and then resubmitting. It's generally a more proactive approach, though I would advise checking with a tax professional before proceeding with this option.

Wow, I just went through this exact scenario! My return was rejected due to an incorrect prior year AGI (I forgot I had amended my 2022 return). According to IRS Publication 1345 (which governs e-file procedures), a rejection and resubmission is still considered part of the same filing as long as it's corrected within the timeframe specified by your provider. I was shocked to find out that the advance lender doesn't even get notified about the initial rejection - they only see the final acceptance! Got my advance just 1 day after acceptance.

One important detail. Timing matters. Most services require final acceptance within 72 hours of initial submission. Beyond that window, advance might need reapproval. Check your service's specific terms. Different lenders have different policies. Document everything. Keep screenshots of your acceptance. Made a huge difference for me last month.

I'm in a somewhat similar situation, and I probably need to make an estimated tax payment by April 15th to avoid penalties. The advance was about $1,200 in my case, which might mean roughly $250-300 in federal taxes depending on your bracket. It's definitely worth setting aside at least 20-25% of the advance amount if possible, just to be safe until you get official clarification.

You might want to check if you qualify for the Retirement Savings Contributions Credit (Form 8880) since your income is under $20K. Contributing even a small amount to an IRA could help offset some of the tax impact from this unemployment advance. I was in a similar spot last year and putting $500 in a traditional IRA saved me more than that in taxes.

According to the IRS website (https://www.irs.gov/taxtopics/tc308), you should file Form 1040-X to correct your return. The current processing time for amended returns is approximately 16 weeks according to the IRS Operations page, though in my experience last tax season it took closer to 20 weeks. Make sure to check the "Where's My Amended Return" tool on IRS.gov after 3 weeks to track progress. You'll need to mail the amendment - electronic filing for 1040-X is limited to certain situations and software providers.

If you've already received your refund, you might need to send payment with your amended return for any additional tax due. I would, um, suggest calculating the tax impact before filing the amendment. The additional $8,828 in income might push you into a higher tax bracket, depending on your total income. Also, don't forget that you may need to amend your state return as well if applicable.