Form 8960 Investment Income Surcharge

[Edward801]

The investment income surcharge according to Form 8960 does not apply to capital gains related to sale of NUA shares (company shares withdrawn from a 401-k account), up to the 401-k withdrawal price.  Line 5 of  8760 provides for this exclusion as explained in the form's instructions.  TurboTax does not provide a means of entering the Line 5 exclusion via its Q &A.  It can be entered manually, but then the return does not pass the check for electronic filing.  I have alerted TurboTax to this problem in 2024, but no corrective action has been taken.

[dmertz]

I think that the NUA amount needs to be entered on TurboTax's Form 8960 Worksheet, Line 5b Adjustments for gain or loss on dispositions, and I think this can only be done in forms mode of the download version of TurboTax.  I can't find anywhere to make this entry in step-by-step mode of the download version of TurboTax and I suspect it can't be done in the online version of TurboTax either.