I have 1099-NEC income reported on Schedule C. The net income after expenses on line 31 of Schedule C somehow ended up on Form 8960 line 4a and 4b (b as negative value). This results in 4c being 0 and no impact on taxes, but the self employment income does not belong on 8960, and was never put there in prior years by TT online. The only reason I noticed was IRS seems to have mistakenly ignored 4a, only used 4b to compute my tax and they lowered my income and tax, send me an unexpected refund. So there seems to be a bug in both TT online AND IRS consuming the bad data from TT electronic submission. Please confirm,
1) Am I correct that self employment income does not belong on 4a, 4b in 8960 ?
2) Assuming so is this a bug others encountered ?
3) If I am wrong, then why didn't TT populate self employment income to 8960 4a, 4b in the past ?
4) Assuming I am correct that there is a bug, how best to report to TT and make sure this is correct in future releases. I already submitted my return incorrectly, but I feel the next result is OK with 2 offsetting errors, so my main concern is that this does not happen to others filing late nor to all of us next year !
