What is a 8960 hold reject code

https://ttlc.intuit.com/replies/7343582

I just got through to Turbo Tax by phone. They are aware of the issue, and it appears that it is a software problem. There is an update being issued tomorrow, March 28 that should resolve the issue. Here's keeping my fingers crossed...

Prior to the March 28 update, the program allowed form 8960 line 9b (state, local, and foreign income tax allocated to investment income) to be more than $10,000. The 8960 worksheet was missing a comparison of the proportion of these taxes allocable to investment income, to the maximum allowed deduction of $10,000; the lesser of these is entered in line 9b. The error should only have affected those itemizing deductions and having a calculated proportion of state, local, and foreign income tax to be allocated to investment income more than $10,000. It didn't affect those who took the standard deduction. I e-filed March 22 taking the standard deduction and my return was accepted in 30 minutes.

Link to TurboTax FAQ page saying March 28:

https://ttlc.page.link/8960

Some TurboTax users are experiencing a tax filing rejection 8960_hold

This return could not be processed for e-filing due to incorrect or missing information.

Please review the reason for the reject. If necessary make the appropriate change and re-submit this return electronically. However, if the reject continues you may want to file this return via U.S. Mail, print this federal return and mail it to the appropriate IRS Service Center.

Resolution

Your tax return has been rejected pending a product update expected to be released tomorrow March 28th. Please check again tomorrow for updates and submit your return.

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Answered by TurboTax FAQ to this question