Reject code AL40OC-105AL40OC-140 occurs when there are errors in the calculations on Alabama Form AL40, Schedule OC, Section B, Part A. This issue arises when:
Line A1 is greater than Line A2, which is not allowed.
Line A3 does not equal A1 divided by A2, which causes an incorrect ratio calculation.
This rejection prevents the tax return from being processed until the issue is corrected.
Solution:
Locate Schedule OC:
Open Schedule OC (Other Credits) in the tax return.
Navigate to Section B, Part A.
Verify Line A1:
Change the value on A1 to reflect the portion of the AL income that should be attributable to other states.
Check Line A3:
Confirm that Line A3 is calculated as: A3=A1÷A2A3 = A1 \div A2A3=A1÷A2
Ensure the ratio is accurate to avoid discrepancies.
Correct Any Input Errors:
Double-check all income figures that feed into Lines A1 and A2. Errors in the main information sheet, W-2 entries, or other forms may result in incorrect values on Schedule OC.
Recalculate Schedule OC:
Save the return after making corrections and allow the software to automatically recalculate Lines A1, A2, and A3 based on updated inputs.
Review and Retransmit:
Verify the corrected values to ensure compliance with the calculation rules.
Once confirmed, retransmit the return.
By ensuring that A1 ≤ A2 and verifying that A3 is calculated as the ratio of A1 to A2, this error can be resolved.