Why is form 8960 included in TurboTax when I do not have these types of investments?

[dasalt1961]

It appears that Turbo Tax includes the form for all filers over a certain AGI. However, since the form is not going to be updated until later in the year (2/7/2019?) it is keeping me - and I suspect others - from submitting our returns.

[Anonymous · Accepted solution]

Who Must File

Attach Form 8960 to your return if your

modified adjusted gross income (MAGI) is

greater than the applicable threshold amount.

U.S. citizens and residents.

 Individuals who have for the tax year (a) MAGI that’s

over an applicable threshold amount, and

(b) net investment income, must pay 3.8%

of the smaller of (a) or (b) as their NIIT.

The applicable threshold amount is

based on your filing status.

• Married Filing Jointly or Qualifying Widow(er) is $250,000.

• Married Filing Separately is $125,000.

• Single or Head of Household is $200,000.

[dasalt1961]

Thanks, that does clarify.  Its just frustrating to have to wait for a form that will show $0 to be able to file electronically.

[Anonymous]

Since Congress write these goofy laws, I think it should be responsible for preparing every filers tax return.  and they pay the penalties if it's their screwup.      when i first started college, I could carry the books to class.   now I need a load master.

[macuser_22]

When you look on the IRS site for the 2018 form 8960 instructions (posted above) they say "2017" and appear to be just a copy from 2017 and the income limits are 2017 limits.  Everyone is waiting for clarification form the IRS and the 2018 instructions to be published because as written the rules mandate the form even when noting other then the income is listed on it.

The project date for the form to be available is Feb 7, and I would guess that is because of the IRS.

[e80625]

It has been updated on irs.gov not sure why turbotax is making us wait till 2/7 especially sine i have no intrest income.

[brhjlh]

So you need to complete 8960 if your MAGI is over the threshold even if you have no investment income? In the IRS's form instructions under Application to Individuals it says "Individuals who have for the tax year (a) MAGI that’s over an applicable threshold amount, and (b) net investment income, must pay 3.8% of the smaller of (a) or (b) as their NIIT.  The "and" would seem to indicate that both "a" and "b" are required before needed to complete this form. Why would you need to complete a form to calculate the tax on your investment income if you do not have any?

[macuser_22]

@e80625 - Because e-fileing does not use paper forms - it transmits encrypted data in the exact format specified by the IRS or the IRS could not read it.  The IRS first finalizes then paper form, then writes the e-file specifications and gives that to e-file providers to develop their software.   Then the IRS must test with the e-file providers and approve the electronic forms before they can be released so that both ends are compatible.  That process usually takes several weeks after the paper version has been released.

The IRS rules and instructions for the form are not clear pending clarification form the IRS.   (Even though the form instructions are *labeled* 2018 on the IRS website, those are actually the 2017 instructions - seems to be a typo on the website since the 2018 instructions are still pending.

[ron6612]

I received this email from Turbotax but the 8960 form is still not available and updated the software:

Your tax forms are ready. The wait is over! The tax forms we needed to finish up your taxes are ready.   Form 8960, Net Investment Income Tax - Individual, Estates, and Trusts