Form 8760 Line 5b

[Edward801]

How to enter form 8760 Line 5b in Turbotax.

[DoninGA]

Unable to locate a Form 8760 on the IRS website.  Is this a state form, if so which state?

[Edward801]

Sorry.  8960, Net Investment Income Tax

[DavidD66]

The only way i am aware that you can enter information for line 5b of Form 8960 is to enter on the Form 8960 Worksheet in TurboTax Desktop.  To do so, while in your TurboTax Desktop return:

• Go to Forms Mode by clicking the Forms icon in the upper right of your screen
• On the left, just above Forms in My Return, click on "Open Return"
• Type in Form 8960
• Click to open the form
• At the top of the form, click on "QuickZoom to Form 8960 Worksheet"

It is unusual to need to make adjustments to on line 5b, as the program calculates adjustments for gain or loss amounts that should not be included in Net Investment Income from the following activities:

* Schedule C 
* Schedule E Worksheet
* Schedule F 
* Form 4835
* Schedule K-1 (Form 1065)
* Schedule K-1 (Form 1120-S)
* Schedule K-1 Worksheet - Estates and Trusts
* Form 2106 asset sales
* Form 4797, page 1
* Form 4797, page 2

[Edward801]

In response to DavidD66

As you note, the entry to Form 8960, Line 5b can be entered manually via the Forms icon.  Having done so, the Turbotax Error Check then asks to remove the manual entry, cautioning that the return might fail on e-file.  My solution is to print the return and file manually.  I need to do this anyway to explain the basis for the 5b entry.  I did this successfully on an amended 2023 return.  But I would prefer to do it electronically.

Your list of potential 5b entries omits "gain on sale of NUA shares, up to price at which shares were rolled over from a 401-k".  NUA shares are employee shares in their company held in a 401-k pre-retirement and withdrawn at the time of 401-k rollover.  Sales up to the rollover price are subject to capital gains tax, but not NIIT.  The 8960 instructions for Line 5b treat this exception specifically.   TurboTax should include a way of identifying this gain in their Q & A, perhaps in the calculation of capital gains (eg. "Are any shares sold NUA shares?  What was the rollover price?"