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

[jdchew5]

I am in exact same boat as you!!! I have downloaded HR Block and just finished, will attempt to file tomorrow after I double check everything…such a pain and just so wrong to make us do this! I’m also going to contact my credit card to refund my TT fees!! Why does TT do this!??? 

[BligBlueLaser]

> @F8960-019-04 wrote:

> I was able to identify the error.

Um, no you weren’t…

You would benefit greatly from reading the instructions for Form 8960 to understand “Who Must File” a Form 8960 (page 1) and the instructions for Lines 4a and 4b (page 6).

[Irobro]

There was an instruction change for 8960 in 2022.  Turbo Tax followed the new instructions but apparently the IRS didn't change their e-file checking program.  Seriously look at the 8960 instructions.  The problem is clearly with the IRS.

[Irobro]

The IRS project list shows the fix is scheduled for late Feb. to mid-March.  Stay  tuned.

[Irobro]

You are absolutely right.  Unfortunately, Turbo Tax doesn't control the IRS.  The IRS, in this case didn't look at the instructions and program their compliance program to reflect the new 2022 instructions they wrote for Form 8960

[floydman]

My concerns / guesses >>

1) if and when this is fixed, can we resubmit electronically?  looking for confirmation - I believe "yes"

2) will TT notify us? I believe "no"

3) if anyone hears the fix has been made I am sure they will post here so I will follow the thread closely, imho waiting to re submit may be better than paper filing which is a nightmare.  The people here will be the first to report a fix.

Thanks to all, this thread helped me put the breaks on paper filing for a short time.  Like all technical fixes this will impact so many people that they actually might fix the code sooner.  Fingers crossed.

[pjmars]

I think people are frustrated with TurboTax, even if the issue is ultimately the IRS' fault (which it likely is), because their communication around this has been relatively unclear, contradictory, and confusing - in summary, really poor and disappointing. When a company's primary source of revenue, and their value proposition to us consumers, relies on their superior ability to deliver a convenient tax-related service for a hefty price tag I think most people expect proactive resolution and communication. I don't think I could tell my boss that we should ignore our customers if it was a vendor's problem that was causing our services to not function properly. You better believe we would be proactively working with our vendor to get things resolved ASAP, while at the same time communicating to our customers proactively in order to manage expectations and to prevent wild speculation. Given that TurboTax makes an enormous amount of money charging people for a service that they can complete on their own, I would expect them to be volunteering their own tech resources to help the IRS in this instance.

[crashXCI]

I, for one, am just really excited for the next 30+ pages of people blaming TurboTax arguing with the people blaming the IRS when everybody knows we should be blaming the communists

[RKR2]

Update:

I filed through H&R Block on 2/4 at around 4 pm.  It is still listed as pending more than 48 hrs later (the time estimate for hearing back per H&R Block was 8-48 hrs).  With TurboTax my rejection came within an hour.

Because my joint income with my spouse is greater than the listed MAGI threshold, form 8960 was also created by H&R Block.  The forms are filled out differently, however.

TurboTax has 600 for line 4a and -600 for line 4b.

H&R Block has 600 for line 4a and 0 for line 4b.

This results in a different value for line 8 (423 vs 1023).

I read the instructions for form 8960 and my eyes crossed, so I can't tell you which one of the forms was filled out correctly, but my guess is if you are UNDER the MAGI threshold or otherwise don't meet criteria forcing the creation of form 8960, you may be able to file successfully.  I do not have investment income or rental income, the only reason form 8960 was created for me (at least from what I can tell) is because our household income exceeded the MAGI threshold for the form.

It is super frustrating to have a significant refund being held back because of $600 of 1099-NEC income, but it seems like (im)patiently waiting is my only option right now.

[eric1919]

Hi all - I'm getting the same rejection error, but my problem is that I owe an underpayment penalty this year which accrues daily/monthly interest until it's paid. 

Does anyone know if there's a way for me to pay the underpayment while we wait for this fix from the irs? I see the last day to pay 2022 estimated payments was mid-january...

Thanks for any guidance here. Not expecting anything from turbo tax given their plan seems to be to ignore the issue but maybe someone out there has some insight.

[jryansmith02]

Ultimately, TT or IRS, I feel really bad for the QA Tester that missed a test case and now has caused a huge influx of reject tax returns. Hoping this comes up in their Retrospective after the current sprint the dev team is in. 

[BligBlueLaser]

@RKR2 

FWIW, if the $600 was non-passive income (a business in which you actively participated) you may be paying 3.8% on that amount given that it was not removed on Line 4b - even though you shouldn’t need to…

[carter76]

OMG…I finally understand. This is all a result of TT’s new ad campaign… “Come to TurboTax…and don’t do your taxes” 🤣

 Interactive advertising…Brilliant! 

[csnash92]

I have the same exact issue, also have no rental income. Just spent an hour on the phone with TT and it took them 30 minutes to figure out this issue has been occurring with many of their customers. 

Provided me with the refund link, which is nice, but had no solution for my problem. 

My rep told me he has my email and will let me know if they find a solution. No timeframe, no workaround. 

I paid with my credit card so I'm also unable to backtrack then file my mail, IRS already charged my credit card. 

Thanks TT! A solution ASAP would be fantastic

[bradartigue]

I just spoke to customer support and was offered a refund as TurboTax has no resolution date.  Apparently if you could remove the form 8960 it would process, but since Turbo won't remove it and the IRS rejects it when it is not filed correctly it does not work.  Using TT for a very long time and I guess that's it, filing elsewhere tomorrow.