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

[BligBlueLaser]

@hopejourney 

Thanks for the reply! I think that's correct about royalties (?) - either way,  I'll update the summary post on page 1 in the morning since it sounds like HRB is doing it correctly now.

[BligBlueLaser]

@Jenks9 

If I'm understanding correctly both what you wrote and the net investment income tax (NIIT):

First you pay income tax on your dividends, just like everyone does. And then, if you your MAGI is above the thresholds, you pay an additional 3.8% on your dividends (NIIT).

At least I think that's how it works... someone please correct me if I have that wrong.

[Jenks9]

I see what you’re saying about the 3.8% and think you are correct. 
I took the above updates to mean there was a line 4a/4b zero out issue…..but perhaps the glitch applies to any income on the 8960 not showing up on schedule 1. 

[randlsa001]

I agree - they should flag affected returns with info about rejection limitations before letting us submit.

[F8960-019-04]

Hi All, my return was accepted this morning.  That said, I had a small 1099 NEC for $1,000. This is what was showing in F8960 I’m 4a & 4b as many have noted.  This error did. Not go away so I deleted the 1099 and submitted. 

I’ll file an appeal after the fact to pay the $400 or so in extra taxes. 

At least it’s done. Good luck to everyone!

[cincymom12]

They said it would be fixed today so I just attempted to re-file- it was rejected again.  Clearly things are not yet fixed.  :(  This is absurd.

[crashXCI]

I kind of feel like the whole 2/10/23 thing was just made up by TurboTax (unless they can cite a specific discussion/guidance they received from the IRS). Sounds like we're still playing the waiting game until one of the IRS's 87,000 new employees can get it fixed.

[kyfiler]

First off, I'd set the bar low. If 02/10 is real, it's likely close of business. But still likely an estimate. Second, the target date came from TurboTax, not the IRS, who ultimately has the "to do" to fix the issue. And third, I recommend checking the IRS Known Issues file daily. Don't try to re-submit unless and until the item is resolved.

See the link below - open the 2022 file in excel (takes maybe 30 seconds to open), filter on column B for "8960". It still says says the target resolution date is late February to mid March. That's a whole lot better than paper filing, which I've heard is taking 9 months or more to process.

https://www.irs.gov/e-file-providers/known-issues-and-solutions

[BligBlueLaser]

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@kyfiler wrote:

Don't try to re-submit unless and until the item is resolved.

This is spot-on, good advice.

I noted in the "Read This First" reply (pinned on page 1 of this post) that some folks have claimed there is a maximum number of rejections allowed, after which the IRS will make you file by paper. I have no idea if that's true or not, but I know you DO NOT want to file by paper unless you want to risk waiting a year or two for your return to be completely processed by the IRS.

I'm not hitting the button again until the IRS says it's fixed and someone from TT says it's fixed.

[Laz23]

Been on this thread since page 1.

Had TT rejected in hours then had HR Block rejected in 4 days.

Yesterday I opened TT and it updated and TT SAID I CANNOT FILE UNTIL THE IRS RESOLVES THE ISSUE.

It said this on the e-file screen.

Today (friday) it updated again and now it does not say that and will let me e-file. Have not yet as I am going over the forms again, but possibly today could be the day it works. 

[Jenks9]

This is a good update. Let us know how it works out. My first rejection was yesterday. Last I looked at the IRS site there was no change in their resolution status since 2/1. 

[BligBlueLaser]

FWIW I think I recall that the 2/1 updated spreadsheet wasn't actually posted to the IRS website until the 3rd or 4th.

[kristipalmer]

I am overanxious for my return and decided, based on the unsubstantiated rumor that there might be a change today, that it was worth the risk to try again...

... fourth rejection today. So now officially I won't try again until the IRS spreadsheet is updated.

[mtmce]

@theThip99 

Compassion level zero

[cincymom12]

No need for name calling.  Everyone is anxious about this and some folks may need their refund quickly.  Let's keep things polite.