F1040-016-07 e-file error

If Form 1040, 'EarnedIncomeCreditAmt' has a non-zero value, then one of the following must be true: (1) 'WagesLiteralCd' in [WagesNotShownSchedule] has the value "HSH" with corresponding 'WagesNotShownAmt' having a value greater than zero; (2) [OtherIncomeTypeStatement] is present in the return; (3) Schedule E (Form 1040), 'PartnershipSCorpCd' has the value "P"; (4) [FECRecord] is present in the return and 'WagesLiteralCd' in [WagesNotShownSchedule] has the value "FEC" with corresponding 'WagesNotShownAmt' having a value greater than zero; (5) Form W-2 or Form 1099-R or Schedule C (Form 1040) or Schedule F (Form 1040) or Form 8919 or Form 4137 is present in the return.

Solution

If you're claiming the Earned Income Credit, you need to have at least 1 of the following items in the tax return.
  • Wages on Form 1040 line 1
  • Wages on Form 1040 line 1 with literal
    FEC
    and Form FEC is present
  • Other income on Form 1040, Schedule 1, line 21
  • Form W-2 is present
  • Form 1099-R is present
  • Schedule C
  • Schedule E, line 28(b) needs
    P
    for at least 1 entry
  • Schedule F
  • Form 8919
  • Form 4137
This error can happen is when excess housing allowance or reported tips is the only income item reported on the tax return. In these situations, you need to file the return on paper.

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