Reject Code: F1040-469
If Form RRB 1042-S, 'SSN' or Form SSA 1042-S, 'SSN' is the same as 'PrimarySSN' in the Return Header, then a binary attachment with Description "Signed Declaration" must be present in the return.
This reject indicates that the signed declaration stating why tax should not have been withheld is not included in the return.
The tax rate for most nonresident aliens is 30%, but social security benefits paid to a green card holder are not subject to a 30% withholding rate. If the taxpayer is a green card holder and tax was withheld in error on their social security benefits (typically because of their foreign address), the withholding tax is refundable, either by the SSA or the IRS. The SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Otherwise, the taxpayer must attach to their return a copy of their green card as well as a signed declaration that the SSA should not have withheld federal income tax on their social security benefits.
To correct this reject, first create the signed declaration and save it in PDF form. Then in TaxSlayer Pro, from the main menu of the individual tax return (Form 1040) select:
- Income
- Social Security Benefits (1099-SSA, RRB-1099)
- Attach Signed Declaration PDFs - Click New, locate the signed declaration PDF, and double-click it to attach it.
Additional Information:
IRS: Publication 915, Social Security and Equivalent Railroad Retirement Benefits (provides guidance for how to word the signed declaration)