An individual income tax return that includes Schedule C with a loss will reject with code SC-F1040-023-01 if the taxpayer is not materially involved in the business:
Reject Code: SC-F1040-023-01
Each 'NetProfitOrLossAmt' in Form 1040 Schedule C, must be equal to 'TentativeProfitOrLossAmt' minus (-) 'HomeBusinessExpenseAmt'.
This reject is commonly received in error due to the taxpayer's involvement in the business not being indicated as material. In TaxSlayer ProWeb, to indicate the taxpayer is materially involved in the business, from the Federal Section of the income tax return select:
- Income
- Schedule C
- Questions About the Operation of Your Business
- Check here if you "materially participated" in the operation of this business during the tax year - Check the box if true.
Additional Information