F1040NR-SNEC-018 e-file error
Error message
If there is no Form 1042-S with 'IncomeTypeCd' having the value "01" or "07" in the return and Form 1040NR, Schedule NEC, 'OtherInterestAmt' in 'IncomeTaxRtOthUndTrtyRuleGrp' or 'IncomeTaxRtOth2UndTrtyRuleGrp' has a non-zero value, then the corresponding 'TaxRt' must be greater than 30%.(value xx.xxxx rule F1040NR-SNEC-018)
note
The value represents the Schedule NEC rate below 30%.
Cause
If there is not a Form 1042-S that has a 1 or 7 in Box 1, the rates on Schedule NEC lines 1 or 2, column d must be greater than 30%.
Solution
- Go to theOrganizer, thenSource Documents (W-2, 1099s, 1098).
- Select1042-S.
- Review Box 1, Income Code on each of the 1042-S forms.
- If incorrect, change the code. Then recompute the return, recreate the e-file, and submit the return.
- If the code is correct and isn't a 1 or 7, go to theOrganizer, thenForeign Information, thenNonresident Alien.
- SelectNot Effect. Connected Inc - Other Rates.
- Review the tax rate entered. It must be 30% or higher to e-file.
- If the tax rate is lower than 30% and there's not a Form 1042-S with code 1 or 7 in Box 1, the return can't be e-filed.
