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.
