Generally this reject indicates that self-employment income has been manually plugged into the Schedule SE menu, when no self-employment income has been reported on the return.
How to correct IRS Reject Code F1040-016-08
From the main menu of the tax return (form 1040), select:
- Other Taxes
- Self Employment Tax (Sch SE) - Select Taxpayer or Spouse as applicable.
- Select Non Farm Regular (including Minister's Income). Remove any amount that was manually plugged into this field. The program will automatically pull any amounts entered within the tax return to this field if the income is subject to SE tax. Income from an S-Corporation is not considered self employment income and should not be included in this menu.
- Retransmit the tax return.