topic Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved in Get your taxes done using TurboTax

Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

alexclaytor — Mon, 23 Feb 2026 09:57:50 GMT

Description of error:
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. At this time we do not have an estimate for when the problem 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

Any idea how to correct this? Thanks!

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

alexclaytor — Wed, 08 Feb 2023 18:49:17 GMT

See post above by @BligBlueLaser

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

Taxes2023_22 — Sat, 28 Jan 2023 02:53:44 GMT

I got the same error and never heard of it until today. Curious what we find out and how to fix it within application. My guess is that is a programming error in application.

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

rcornwell9367 — Sat, 28 Jan 2023 11:13:39 GMT

I have the same issue. and i don't have any rental property period so i have no clue on this either.. so much for filling early

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

Em53 — Sat, 28 Jan 2023 11:54:03 GMT

I am having the save issue. I have no rental income yet the amount in 4a is being populated with self employment income.

Schedule 1 does not have this amount, so causing rejection.

will this be fixed?

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

Rwoodruff1 — Sat, 28 Jan 2023 12:37:29 GMT

I keep getting the same code. I’ve been up now for 24 hours trying to figure out why I’m getting this rejection code and no one seems to have the answers. Hopefully we get answers soon because this is unreal

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

herzogmj — Sat, 28 Jan 2023 14:47:49 GMT

I have the same issue. I do have rental income but I've had rental income for years without this issue before. I spoke to 6 different reps over the last 24 hours, no one knows how to resolve and have been giving me many different solutions

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

rcornwell9367 — Sat, 28 Jan 2023 14:56:45 GMT

if you call support could you please post what you find out ?

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

bwoods313 — Sat, 28 Jan 2023 15:12:36 GMT

I'm having the same issue as well, and I have no rental income to report either. Agree with the other posters here: if anyone is able to find out some information, it would be GREATLY appreciated if it's shared broadly! Thank you!

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

herzogmj — Sat, 28 Jan 2023 15:25:03 GMT

I didn't post what support said because it either wasn't helpful or I can't confirm it works.
Rep #1 - said download the desktop version to manually change the form and resubmit, but hung up on me before we could go down that path. I looked at the form, I need a tax experts help.
Rep #2 - said download the 8960 form from the IRS website, fill it out and upload it to turbotax then refile. Again I would need a tax expert, she said she would transfer me and hung up.

Rep #3 - had no idea and couldn't get help so just offered the refund link (which I will probably use after getting this resolved)
Rep#4 - said I didn't need the form and to delete it. I do need the form though.

Rep #5 - wouldn't even start a conversation with me until I gave her my social, which I felt weird about and I had already given her my phone number, email and name. No one asked for my social before her. I told her this and asked her if she was sure she needed it, she said yes. I just hung up.
Rep #6 - heard everything I had to say about everyone else. Went straight to supervisor. Supervisor spent mins "researching" to come back and tell me to clear my cache. Eventually transferred to a tax expert (on with them now)

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

herzogmj — Sat, 28 Jan 2023 15:38:53 GMT

*spent 40 mins

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

sxujas — Sat, 28 Jan 2023 15:44:19 GMT

Has to be a programming error. After days of waiting received the same error message. I have no rental income thus no need for form 8960. Tried to go into Tools (Online Version) and delete Form 8960 and resubmit. This time IRS response was within 30 minutes. Same exact error.....blah blah blah Form 8960. So the Delete Form function clearly doesn't work as well.

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

Laz23 — Sat, 28 Jan 2023 15:47:12 GMT

Intuit needs to be on this ASAP.

Most all users with this issue have NO rental property income so the 8960 is not required.

Problem is if you e-file it will always reject since the Sch 1 Line 5 rental will always be blank and form 8960 requires this to be populated. You can only populate it if you enter rental property.

The solution is to DELETE form 8960 BUT Turbotax keeps recreating this.

They really need to get on this with an update. Seems a simple fix as if there is no rental property there should be no 8960 form.

Re-submitting to the IRS with e-file will eventually exceed the # of attempts then you will be forced to mail which will take months and months to process.

As a life long TT user its urgent TT fixes this to retain our trust otherwise a lot of people will be looking for other software next year.

Re: Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

rcornwell9367 — Sat, 28 Jan 2023 15:54:31 GMT

holy crap.. what i mess.. have never had issues like this with TT. please let us know what they say.. seems to be more and more people with the same issue

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

randalputnam — Sat, 28 Jan 2023 15:56:37 GMT

Pretty typic error message.

First, no reference in 8960 to “Net Rental Income Or Loss Amount," but my best guess are lines 4a, 4b and 4c. I have only self employment income, no rental income, but my self employment income is listed on 4a, it is then subtracted in 4b, and then 4c shows $0. Kind of a head scratcher since the error message itself states that if the rental income or loss is not equal to zero, then it needs to show up on Schedule 1.

Second, no reference in Schedule 1 to Rental Real Estate Loss Amount. Hmm.

BUT, the error message itself suggests what may be the problem. Three conditions are listed as necessary to have different amounts in 8960 and Schedule 1. Conditions 1 and 3 are inconsistent. If you are married and filing jointly, the filing threshold amount is $250,000, not $125,000. Turbotax correctly filled in $250,000. In my circumstance, lowering the filing threshold amount to $125,000 doesn't change my tax liability, so I forced $125,000 into the form (override function under the edit menu on a Mac) and then tried to refile electronically. Turbo tax wouldn't let me, so I am left with the option of filing paper. I understand that the IRS is pretty overloaded with paper due to staffing shortages so I really want to file electronically.

My thought, then, is rather than calling Intuit, I will call the IRS on Monday and see what they can do. Not optimistic about that, but I figure it is worth a try. If that fails, I will paper file and put on my patience hat. Wish me luck. I will report back. Good luck to you.

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

randalputnam — Sat, 28 Jan 2023 15:58:48 GMT

Cryptic error message, that is.

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

taxes38 — Sat, 28 Jan 2023 16:03:50 GMT

I am having the same problem. I read through the IRS instructions for form 1040 and 8960. From my reading of instructions, turbotax filled the form out correctly. I think the problem is on the IRS end. Question: Did everyone else with this rejection code file a 1099-Misc or 1099-NEC?

and does anyone know if turbotax monitors these threads?

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

rcornwell9367 — Sat, 28 Jan 2023 16:06:59 GMT

i have a 1099 nec.. with same issue

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

herzogmj — Sat, 28 Jan 2023 16:09:16 GMT

Tax expert said during our call he was notified of an official message that they are aware of this issue impacting many people; its brand new. They say they need to make some updates to their forms because there have been changes on the IRS side. He suggested waiting over the weekend and seeing if its fixed Monday/Tuesday or they may have a better handle on it.

Re: Federal return rejectionReject Code F8960-019-04Processing error Form 8960, Net Investment Income Tax. We do not have an estimate for when the problem will be resolved

alexclaytor — Sat, 28 Jan 2023 17:10:26 GMT

Thanks for the update! Could you post the support person's name and employee ID?

I'm pretty shocked we haven't had a company representative reply here yet with an official statement on the matter. It's obviously a large and widespread issue. The least they could do is acknowledge they know about it and are working on the root cause so we aren't chasing our tails in frustration with their low-level support people wasting our time and their time.