Here's what I found out, hope it's helpful! I also had mine declined for this reason
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.
First thing I said was, I DON'T have any rental income, what is this? Got online with Cody from support who was super patient and helpful. But what's strange is when he looked up the error number, they had never heard about it before. a 5 second search came up with this web page, so maybe they need to expand their resources. But before I did that I was on the phone with him and I kept saying I don't have rental income, which the message seems to be saying I do. I don't need this form. I tried to delete it, it didn't work, Then i realized the only thing on there was my simple interest from the bank. So i looked at last years taxes and sure enough, that form was included last year and filed. So I now know that form is ok to be included. Then with him still on the phone, I did my search. I found this site and some others, that clearly state this is an IRS problem that needs to be fixed by them. So the advice is to wait a few weeks and submit again, or mail it in. I didn't like either of those solutions, because I felt that was just a shot in the dark. But then I found out that the advice to wait a few weeks is to wait for the IRS to fix it. So now I've seen a fix date between feb 5 and feb 9 in different places, So I can continue to look to see when that is resolved and then submit again. I was trying to do this early to get my refund before closing on a house, but don't think that's going to happen. I think the message should have been clearer. NetRentalIncomeOrLossAmt' , 'RentalRealEstateIncomeLossAmt', 'Section6013gInd' and 'Section6013hInd' , 'FilingThresholdAmt' are not terms that are used on that form, to me ( a web developer) these look like programming variable names and not user friendly. Not sure if this is a turbo tax description or IRS, but if it's TT, they need to make it more readable. Just letting everyone know that you just need to wait to file until this is resolved. hopefully, soon
