My return was rejected and the explanation from Turbo Tax is below. I don't even have rental income and it seems to be a glitch that Turbo Tax is not fixing until February 19th, which is unacceptable. I have already paid to file my taxes and so I don't want to go to another site to file them. This may be the last year I file with Turbo Tax.
If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to Schedule 1 (Form 1040), 'RentalRealEstateIncomeLossAmt' unless all of the following conditions are true: 1) Filing status of the return is Married filing jointly or Qualifying widow(er) and 2) Form 8960, checkboxes 'Section6013gInd' and 'Section6013hInd' are not checked and 3) Form 8960, 'FilingThresholdAmt' equals 125000.
What needs to be done:
This return cannot be electronically filed due to a processing error on Form 8960, Net Investment Income Tax. This issue will be resolved on February 19, 2023. On or after this resolution date you may resubmit this return for electronic filing.
It's not Turbotax fault, but the IRS has not finalized form 8960 until 2/19.
I received the same error. Do we actually need to do any update in Turbotax or just wait to resubmit on February 19th? This isn't clear to me.
Thanks
We are aware of the Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. The Business rules need to be modified to reflect the updates to the instructions for form 8960. The IRS will update the Business rules by mid-March 2023.
Please see IRS Known Issues and Solutions for updates.
Thanks! Just so I understand. The answer is, wait until the IRS fixes the problem and the re-submit in March?
Thanks!