Reject Code F8960-019-04

Forum|Forum|3 years ago
February 5, 2023
3 replies
0 views

After filing both federal and state returns. I received an email that said the return was rejected and got this code.

Description of error:
If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to Schedule 1 (Form 1040), 'RentalRealEstateIncomeLossAmt' unless all of the following conditions are true: 1) Filing status of the return is Married filing jointly or Qualifying widow(er) and 2) Form 8960, checkboxes 'Section6013gInd' and 'Section6013hInd' are not checked and 3) Form 8960, 'FilingThresholdAmt' equals 125000.

What needs to be done:

This return cannot be electronically filed due to a processing error on Form 8960, Net Investment Income Tax. There is currently no estimated date for when this will be resolved. You have two options: 1) You may wait a few weeks and attempt to resubmit this return, or 2) You may print and file the return by mail. This message will be updated when a resolution date is identified.

I downloaded and examined my return, and it does not include form 8960 and we have no investment income, rental property or otherwise. Can you explain what I can do to fix this issue? Am I forced to print and send in a paper copy?

TurboTax Self Employed Online

JohnB5677

Level 15

This error refers to Form 8960 Net Investment Income Tax Individuals, Estates, and Trusts. The issue is known by the IRS and there is a resolution date of 2/17/2023. Once fixed by the IRS, TurboTax will make their adjustments.

IRS Forms & Instructions revision dates

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gdahlgrenAuthor

Level 2

Will I be notified when Turbotax makes the change, or should I just resubmit on the 17th?

CarissaM

Level 15

You would need to resubmit after the 17th. Once the IRS finalizes everything, then Turbo Tax can update the form. @gdahlgren

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DaveF1006

Level 15

I have found this information in a spreadsheet compiled by the IRS reporting their known issues. According to this, the issue was reported on 02/01/2023 and there is no solution at this moment except for the fact it will be resolved early in Tax Year 2023. How early remains to be seen.

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EugeneTT

Level 2

Thank you @DaveF1006 ! It all makes sense to me now. I wanted to mark your answer as "Mark as Best Answer" (as suggested). But I did not find where to click for it . It is just sad that TT invents the dates. Looks like some guinea-pigs customers are needed to see if the "Reject Code F8960-019-04" issue is fixed by IRS on 02/19/23 .

Thank you again

BligBlueLaser

Level 5

@EugeneTT wrote:
Looks like some guinea-pigs customers are needed to see if the "Reject Code F8960-019-04" issue is fixed by IRS on 02/19/23 .

Found a test case!

jhturner71

Level 4

My return was accepted on 2/19 after previous rejection. I had the same issues as everyone here. I have a Schedule C basically business contractor profit that was not passive income. That amount was placed by Turbo tax on line 4a of 8960. (even though I have no real estate profits). Then on 4b is the exact same amount but a negative value canceling it out and it shows a "0" on 4c. There is also a negative amount on line 5a "net loss of disposition of property" but I had no property, the amount listed is my total capital gains loss from stocks this year. Line 5 of schedule 1 is blank. Line 17 on 8960 does have a positive amount which is 3.8% of my dividends and interest minus my capital gains losses which is the correct amount. That was auto placed correctly on my 1040. On my 8960 works form it listed the total amount of business income(profit) on the line "adjustment for business or trade income not subject to net investment tax". I did notice that a schedule E was autogenerated at some point, so I just deleted that form. What is interesting is that turbo tax showed no errors, and I filed, and it was rejected. On the rejection explanation it said try again on 2/19. So basically, I did not have to change anything other than deleted schedule E. This time it was just accepted. Everything looks the same as it did when it was rejected. So the IRS must have changed something. But wanted to update people that it did go through today for me. I still think it is unusual the way lines 4a and 4b are worded that a small self business income is listed there. Other advice to delete form 8960 is wrong. if you make over 250,000 married filing jointly and have investment or dividend income you have to do this form. I am not a tax professional at all. Just a TurboTax user. But it went through today for me with pretty much changing nothing.

prbhattarai

Level 2

Thank you for sharing that your return is accepted. My return was rejected yesterday due to the same reason. Learning that IRS would fix the issue on 02/19, I resubmitted my return today around 10 AM. I am waiting to hear what will happen but It sounded like they fixed it so finger cross it will be accepted.