Form 8960 error saga

[onewanderer]

Just noticed TT is claiming a 2/19/23 fix date.

I'm wondering: is this based on something TT knows from the IRS or is this just a guess?

"

...

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."

[beachnit]

Interesting!  One can only hope...  (although rationally I can discern why a date like "February 19" could be identified with any degree of certainty.)

I am now convinced more than ever that Turbotax did complete Form 8960 CORRECTLY so I am now waiting (zen-like) for a final green light from the IRS and TT. 

I see that a similar thread has now been locked/closed on this issue.  Hmmmm...

Hang in there!

[onewanderer]

I wanted to post this to that threat, but, alas, like you said, it’s locked. 

Is your error showing the same date?

best of luck with your taxes this year,

-A

[beachnit]

Anyone know why that thread was locked?  Lots of good information and conversation...

[onewanderer]

I’m thinking either:

1) It was getting too long and they just wanted folks to read the first reply

or

2) TT’s public relations folks were trying to tamp down on it. It’s a bit of a sore spot when you sell your product as ready to file… and then it’s not and people complain about it, potentially turning some over to their competitors. (regardless of where the fault is, TT might have placed one of those “not ready to file, form needs to be updated” messages before having everyone run off the 8960 cliff. I would not be posting stuff on community if their software simply told me to wait before the IRS and 2 states rejected my returns and scared the hell out of me).

[beachnit]

Thanks!  I guess that makes sense.  Wondering how I'm supposed to find out when and how I am supposed to refile when this issue is resolved...

[Critter-3]

Every year there is something that is an issue that takes a while to iron out ... this year the 8960 seems to have that honor ... all you can do is just wait for the dust to settle which it always does.  

[onewanderer]

You could revisit your TT account on 2/19/23, then see if it gives you any error message when attempting to refile. Then consider refiling vs not if there is no error message.

That’s my plan.

[Hermitcrabaz]

My return was accepted on 2/19 after previous rejection.  I had the same issues as everyone here.  I have a Schedule C basically business contractor profit that was not passive income.  That amount was placed by Turbo tax on line 4a of 8960.  (even though I have no real estate profits).  Then on 4b is the exact same amount but a negative value canceling it out and it shows a "0" on 4c.  There is also a negative amount on line 5a "net loss of disposition of property" but I had no property, the amount listed is my total capital gains loss from stocks this year.  Line 5 of schedule 1 is blank.  Line 17 on 8960 does have a positive amount which is 3.8% of my dividends and interest minus my capital gains losses which is the correct amount.  That was auto placed correctly on my 1040.  On my 8960 works form it listed the total amount of business income(profit) on the line "adjustment for business or trade income not subject to net investment tax".   I did notice that a schedule E was autogenerated at some point, so I just deleted that form.   What is interesting is that turbo tax showed no errors, and I filed, and it was rejected.  On the rejection explanation it said try again on 2/19.  So basically, I did not have to change anything other than deleted schedule E.  This time it was just accepted.  Everything looks the same as it did when it was rejected.  So the IRS must have changed something.  But wanted to update people that it did go through today for me.  I still think it is unusual the way lines 4a and 4b are worded that a small self business income is listed there.  Other advice to delete form 8960 is wrong.  if you make over 250,000 married filing jointly and have investment or dividend income you have to do this form.  I am not a tax professional at all.  Just a TurboTax user.  But it went through today for me with pretty much changing nothing.

[johngfrye]

• Has anyone with the 8960 error code tried refiling today? What was the outcome?

[johngfrye]

Has anyone experiencing this error code tried refiling today (2/19)? Was it was successful?

[Hermitcrabaz]

yes, see my post right above yours and you can see my description.  Yes, it went through and was accepted!

[beachnit]

I just refiled a minute ago.  Didn't change anything (although I notice there were several updates for TurboTax when I reopened the site.)

I'll let y'all know...

[onewanderer]

Just hit refile.

I'll post tomorrow/the next day if it goes through.

[onewanderer]

Didn't have to wait that long: "Your federal tax return was accepted by the IRS."

Took <20 min to get it accepted; when it was rejected, it took >1 day.

Best of luck with your taxes!

-A