How do I fix Reject Code F8960-019-04?

[kadelyons]

both my Fed and State are being rejected

[CatinaT1]

Do you have rental income included on your return? That reject code is due to Form 8960. Please review the rental income section of your return. 

Additionally, when you open your return, you should have a "Fix it Now" button to clear the problem.  

Once the federal rejection is cleared, and your federal return is accepted, your state return will follow.

Reject F8960-019-04: 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.

[kadelyons]

I do not have rental income have not had rental income for over 15 years so now what I have hit fix it numerous times and still getting the error

[CatinaT1]

I wonder if the form somehow got into your return and needs to be deleted.

Try these steps to see if the form is included in your return, and if so, delete it and try filing again.

1) Open your tax return. 

2) Go to the left side of the screen and click on Tax Tools, then Tools 

3)  From the pop-up Tools Center  menu, select  Delete a form 

4) Scroll to find Form 8960 and Delete it. 

5) Scroll to the bottom of the list and hit the button to Continue My Return 

  

That should do it. 

How do I view and delete forms in TurboTax Online? 

How do I delete a tax form in the TurboTax CD/Download software? 

[kadelyons]

ok really quickly would love to view the form before I delete it can you tell me how to view it

[Chamhead]

There is a whole thread on this topic with hundred of responses - this is not related to rental income.  It is a known IRS issue that will be fixed by mid-March.  Search the threads for this reject code.

[tobias_funke]

@CatinaT1  This is not a good answer from a so called expert. There is a thread with over 39 pages of responses. It is an IRS issue and we all wait for it to be resolved.

[MichelleLO]

We are aware of the Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. The Business rules need to be modified to reflect the updates to the instructions for form 8960. The IRS will update the Business rules by mid-March 2023. Please see IRS Known Issues and Solutions for updates.

[Tim-Bender]

My turbotax states that this error will be fixed by Feb 19,2023, but this excel spreadsheet from the IRS states March 19,2023 is the predicted fix date.  It makes be wonder if Turbo tax is even updating at all.  I am loosing faith about TT.

[CarissaM]

We are following the guidance of the IRS, and this will be resolved on March 19, 2023. Please wait to file until after March 19, 2023. @Tim-Bender 

[Tim-Bender]

This is what TurboTax still says on the error.

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.

Why has TurboTax not updated the error comments to reflect March 19?

This has me nervous the TT is not updating the application to reflect any of the IRS updates.

[CarissaM]

We apologize this has not been updated accordingly. it will be resolved on March 19, 2023. Please ensure you update the software on that date in order to file the return. @Tim-Bender