topic Re: What is reject code f8960 in Get your taxes done using TurboTax

What is reject code f8960

bculberson1 — Mon, 23 Feb 2026 09:50:51 GMT

My federal return keeps getting rejected and I don't understand why am I getting this reject code. Form 8960 has to do with Rental income loss or gain and I've never had rental income. Like ever. Turbotax's suggestion is to 'wait a few weeks and try again' or print the returns and mail them. So let me get this straight... TT has been paid to file taxes, although they can't. Their solution is to do it myself. How about a refund then??

Re: What is reject code f8960

Affordabletaxes2021 — Sun, 29 Jan 2023 13:04:09 GMT

Are you sure the error refers to Form 8960 or Form 8962? Did you have insurance through the Marketplace? Obama care? Have you received a form 1095a from the marketplace?

Did you have any investment income ?
Go back to the interview and check your entries in wages and income section of return . Look for data entry errors. The Form 8960 is for investment income so check through the income.section to see if there’s any entries in the investment section.

Re: What is reject code f8960

RobertB4444 — Sun, 29 Jan 2023 18:26:21 GMT

This is a known issue on the IRS side of the equation. Please look at this link which explains what's going on with your return.

I'm sorry you're dealing with the hassle but the IRS says that they'll have the problem fixed by February 5th. You should be good at that point.

@bculberson1

Re: What is reject code f8960

bculberson1 — Mon, 30 Jan 2023 00:36:42 GMT

It's definitely 8960: No Marketplace or ObamaCare (see error message below).

We had no Investment Income, but did have a 1099-NEC. Oddly enough the amount of the 1099-NEC is what's showing in Investment Income on the 8960 form. No idea why. I'll give it a few days and then look again.

"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."

Re: What is reject code f8960

bculberson1 — Mon, 30 Jan 2023 00:38:40 GMT

Thanks, I was hoping that was the case. I'll try again next week and hopedully it'll be resolved.

Thanks for your help!

Re: What is reject code f8960

JohnB5677 — Mon, 30 Jan 2023 21:14:51 GMT

This error refers to Form 8960 Net Investment Income Tax Individuals, Estates, and Trusts. The issue is known by the IRS and there is a resolution date of 2/7/2023. Once fixed by the IRS, TurboTax will make their adjustments.

IRS Forms & Instructions revision dates

Re: What is reject code f8960

lmp7677 — Tue, 31 Jan 2023 17:52:53 GMT

Here's what I found out, hope it's helpful! I also had mine declined for this reason

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. There is currently no estimated date for when this will be resolved. You have two options: 1) You may wait a few weeks and attempt to resubmit this return, or 2) You may print and file the return by mail. This message will be updated when a resolution date is identified.

First thing I said was, I DON'T have any rental income, what is this? Got online with Cody from support who was super patient and helpful. But what's strange is when he looked up the error number, they had never heard about it before. a 5 second search came up with this web page, so maybe they need to expand their resources. But before I did that I was on the phone with him and I kept saying I don't have rental income, which the message seems to be saying I do. I don't need this form. I tried to delete it, it didn't work, Then i realized the only thing on there was my simple interest from the bank. So i looked at last years taxes and sure enough, that form was included last year and filed. So I now know that form is ok to be included. Then with him still on the phone, I did my search. I found this site and some others, that clearly state this is an IRS problem that needs to be fixed by them. So the advice is to wait a few weeks and submit again, or mail it in. I didn't like either of those solutions, because I felt that was just a shot in the dark. But then I found out that the advice to wait a few weeks is to wait for the IRS to fix it. So now I've seen a fix date between feb 5 and feb 9 in different places, So I can continue to look to see when that is resolved and then submit again. I was trying to do this early to get my refund before closing on a house, but don't think that's going to happen. I think the message should have been clearer. NetRentalIncomeOrLossAmt' , 'RentalRealEstateIncomeLossAmt', 'Section6013gInd' and 'Section6013hInd' , 'FilingThresholdAmt' are not terms that are used on that form, to me ( a web developer) these look like programming variable names and not user friendly. Not sure if this is a turbo tax description or IRS, but if it's TT, they need to make it more readable. Just letting everyone know that you just need to wait to file until this is resolved. hopefully, soon

Re: What is reject code f8960

cdoming22 — Wed, 01 Feb 2023 14:14:02 GMT

Having the exact same issue. Please let the group know when this is resolved so we can all e-file again!

Re: What is reject code f8960

RalphH1 — Wed, 01 Feb 2023 15:22:48 GMT

Hopefully we’ll be in business with this on February 5th (as discussed in this other TurboTax conversation, and on the IRS issues spreadsheet you can get here). As Imp7677 and others clarified, the verbiage the IRS gives us with the rejection is misleading (referring to rentals, etc.), as the actual form is for the extra investment income tax (that came with the “Affordable Care Act”). So we’ll all stay tuned (or tune back in)…

Re: What is reject code f8960

rmwarby — Fri, 03 Feb 2023 03:49:08 GMT

Same issue here. I wish the error code was linked to this discussion, it is not clear at all.

I do not have any rental income (I wish!)

Re: What is reject code f8960

gochnoj — Sun, 05 Feb 2023 01:17:07 GMT

So frustrated! I don't have rental income. My taxes are fairly simple and I can't file because of this. So annoyed.

Re: What is reject code f8960

Troy61 — Sun, 05 Feb 2023 18:39:31 GMT

Well it's Feb 5 and still rejected. So whatever they thought would correct it did not. If they don't get thus fixed the paper return onslaught will be a nightmare to sort through.

Intuit could fix it on their end by not creating rental income forms when not needed.

Re: What is reject code f8960

JamesG1 — Sun, 05 Feb 2023 19:36:56 GMT

Your tax return may be affected by an IRS filing issue outlined in this Best Answer. If so, the IRS forecasts a resolution date of late February to Mid-March 2023.

IRS Known Issues and Solutions Files by Form Family

Forms availability says that IRS Form 8960 is available for use.

@Troy61

Re: What is reject code f8960

Hslama0202 — Mon, 06 Feb 2023 17:04:26 GMT

Has anyone tried again recently? I’m getting this code as well and they said the fix would happen Feb 5 but sounds like someone tried yesterday and it was rejected again.

Re: What is reject code f8960

dgpaul10 — Mon, 06 Feb 2023 18:30:06 GMT

I just resubmitted my tax returns and they got rejected again. Guess I will wait another week and see whats going on.

Re: What is reject code f8960

Claw1 — Mon, 06 Feb 2023 18:50:31 GMT

Tried again with no luck. Spoke to Turbo Tax support and they still have no idea when it will be resolved other than in the Feb-March timeframe.

Re: What is reject code f8960

kristipalmer — Mon, 06 Feb 2023 19:55:48 GMT

@RobertB4444 and others: there is another thread in the support forums where hundreds of folks are impacted and struggling to understand status. Please see the discussion for: federal-return-rejection-reject-code-f8960-019-04-processing-error-form-8960-net-investment-income/ (I am unable to provide a full link)

Folks on that thread are somewhat desperate for someone from Intuit to provide some insights and guidance, and unfortunately lots of folks are finding that filing with other tax software is solving their ability to successfully eFile. Help!

thanks

Re: What is reject code f8960

tjforeman — Tue, 07 Feb 2023 02:21:41 GMT

If you want to go ahead and file to get the refund for your closing costs, you can delete whatever is feeding into that form 8960 in that specific area that is "glitched." For example, just delete a 1099-nec, and go ahead and file without it. Then, file an amendment and mail it in with payment before the April deadline.....it's really not that difficult to file and amendment.

Re: What is reject code f8960

dgs0321 — Tue, 07 Feb 2023 02:30:40 GMT

The official IRS page lists the resolution date as: sometime in late February to mid-March 2023.

The list can de downloaded here: https://www.irs.gov/pub/irs-schema/ty[product key removed]s-and-solutions.xlsm

Re: What is reject code f8960

MichaelG81 — Tue, 07 Feb 2023 02:41:39 GMT

It is a known IRS issue. Click here for known issues.

Looks like it will be corrected in late February to mid-March. This is not TurboTax but a known issue rejecting returns, try not to get rejected to many times before it will not accept, and please report all forms as instructed and applicable, per IRS guidance.