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

[rjkastner61]

To BBL

Some posts have had TT Advisors say this would be the method to implement/fix once TT corrects the software.

Apparently - the present return we have already completed and attempted to e-file - has the "old" business rules regarding Form 8960. Once TT updates their software with the "New" IRS Business rules for Form 8960 - I guess deleting any 1099-NEC's/MISC's in Other Income and re-entering them - would allow the updated software to NOT place this other income in lines 4a, 4b on Form 8960. Thus, prevent the IRS rejection.

We'll see.

[tchang999]

So it sounds like there is nothing for TT users to do at the moment other than wait for the IRS to update on theirt end (02/05) and then for TT to update its form.

Then we can update our software and refile.

Nothing we can do but wait until next week or use H&R Block and get a refund on our TT payments (which won't be easy unless you have a credit card).

Feel helpless and uncertain just waiting while my refund is sitting with the government.

[denisep962]

If that works, let us know. I would do the same thing.

[hellercane70]

I just got off the phone with a TurboTax expert.   This Form8960 has not yet been approved for efiling by the IRS for all tax vendors.  The only remedy is wait for the IRS approval in a software update fix, or print and mail the return like 1975.

[BligBlueLaser]

@rjkastner61 

That sounds like bad advice: the guidance from the IRS for 2022 Form 8960, specifically noted in their "Known Issues" spreadsheet, is to include Schedule C income on line 4a (and subtract non-passive Schedule C income on line 4b).

That same spreadsheet seems to be saying that the problem these new instructions for 2022 Form 8960 are not included in the IRS's own business rules (which I presume are used to screen an e-filing for errors?). So the IRS erroneously rejects the filing.

So *if* this is an IRS issue (and not a TT issue), all we'd need is for the IRS to update their systems. If we also need to update our returns in TT, then has also been a TT problem all along - which would be quite aggravating.

[BligBlueLaser]

@hellercane70 

We seems to have a number of explanations/remedies equal to the number of TT "experts" who have commented on the issue. Which tells me they have no concrete idea of how/when this gets fixed. Ridiculous.

1975 is not an option. One of my states is NY and I see folks who paper-filed in 2021 and are still waiting on a refund check.

[tchang999]

As far as I have read online, only TT users are getting rejected.  ETax and H&R Block work perfectly.

[BligBlueLaser]

@tchang999 

Seen that too - although I have *not* seen anyone confirm that their 8960 on those other platforms follows the 2022 Form 8960 instructions from the IRS.

Are they able to e-file because those other platforms *did not* include Schedule C income on lines 4a/b per the IRS's new instructions, so the IRS's bad "business rule" was not triggered?

Would love to know what's on 8960 lines 4a/b (versus TT) from someone who used another platform...

[rjkastner61]

Interesting that the IRS says that Form 8960 is not yet ready for e-filing - for “all” vendors.

Not sue why users of HRB and e-Tax are not getting rejections with the same inputs??

Still confused - sure hope TT let’s everyone know when it’s “OK” to e-file regarding Form 8960 updates.

[toothy]

just looked at mine. H&R Block did not use form 8960 for me, which makes sense because I don't have any investment income. On Turbo Tax, 4a is 5640 and 4b is -5640, which is the amount of my wife's 1099-NEC and not sure why TT is using form 8960 for that. 

[BligBlueLaser]

@toothy 

THANK YOU!!! So at least we know why HRB, et.al. are working.

Can't imagine it will make a difference for you, but TT appears to be doing exactly what the IRS wants as of TY2022. From the IRS Known Issues spreadsheet (emphasis added):

Business Rules F8960-019-04 and F8960-003 may cause returns to erroneously reject. These business rules need to be modified to reflect the updates to the Instructions for Form 8960 (Tax Year 2022) regarding the Specific Instructions for Line 4a to include Schedule C (Form 1040) amounts reported on Schedule 1 (Form 1040), line 3 and Form 1041, line 3.

It would appear that HRB did not follow the new "Specific Instructions" for 8960 with your return? I doubt it would make any difference but who knows...

EDIT: If you look at page 6 of the IRS instructions for Form 8960, seems like TT is doing what they want?

EDIT: Also from the 2022 8960 instructions, page 1: 

Who Must File
Attach Form 8960 to your return if your modified adjusted gross income (MAGI) is greater than the applicable threshold amount.

[...]

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.

Seems kind of stupid but if I'm reading that right, you must file an 8960 if you exceed those thresholds - even if you don't have rental income, investment income, etc.

Anyone reading that differently?

[toothy]

I'll keep everyone updated on whether I get rejected or processed

[Taxes2023_22]

Thanks everyone.  I tried to cancel and get refund and was rejected given they won't refund on-line versions.

Once someone gets it to work, please keep us posted so we can file (hopefully - next week ?)

[gregkzn]

I’m in the same situation. Been using TT for over 30 years and hate to have to go to another tax software. I already called my credit card company and they told me they will reverse my charge for the purchase of the software.  I’ll wait to see the outcome of the filing errors. 

[tchang999]

I am new to the "Community" but i felt so helpless and have used TT for over 20 years.  Is it normal for TT not to provide a formal response here in the Community?  This topic has the 2nd most comments and if it were not for others who called TT and gave us updates (albeit mixed and not clear updates), we would all just be wondering what to do?  I am going to see what happens next week and then use H&R Block and call Amex for a refund for my Turbo Tax.