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

[dcw2000]

Having the same issue, a 1099-NEC for 600 dollars is triggering the 8960 issue. Since too many rejections could trigger a need to file a paper return, would someone please post here when the issue is corrected (looks like it is, in fact, an IRS issue, with a resolve date of 02/05/23) so that we know when it is safe to hit submit again? That would be greatly appreciated!!

[BligBlueLaser]

Somebody got an answer from TurboTax on Twitter and it looks like we're waiting for the IRS to fix something.

[Mich Tax Payer]

Well this is fine mess for Turbo Tax or IRS.  Not sure who is at fault here, but a lot of people have net investment income that needs this form.  I too have no rental income, but it keeps showing up.  I paid to electronically file my state, which is a very simple form based off AGI in Michigan, and I was able to get a refund to file the return on paper.  Filing a 45 page federal return on paper is ridiculous, and the instructions are we don't know what the problem is, no ETA, maybe file a paper return?  What the heck did I pay for?

[carter76]

Thank you so much for this info.  Thought I was losing my mind.  Wish TT would get on this in order to provide accurate updates.

[kingmk888]

Hi - Save your precious time and energy. I am in the exact same situation and went from chat to phone to screen-sharing (twice) after 2 rejections. I spent over an hour with them over two calls three days apart... Nice enough gentlemen, but powerless to make any fixes. So given there's nothing the TurboTax customer service reps can do, I'll just wait until 2/5 and hope the IRS has it fixed by then. SMH...

[cincy513]

This is exactly what is happening to me as well.  

[herags]

I am glad I was not the only one having this particular issue. I have been a TurboTax customer for 20+ years and this is the first time I have had a return rejected. Maybe it is IRS issue, but I wish TurboTx had better help available. Somewhat disappointed with TurboTax this year.

[alexpavlakis]

I'll expect a full refund from turbo tax this year due to the inconvenience.  This is unjustifiable.

[fouadkurdi1]

I am having the same issue. I have also posted on this same subject. 

[jyhornbuckle]

I am having the same issue.  I tried twice but it was rejected.  I have no way to zero out rental income on form 8960 or reach 8960 directly. 

[pamelahelpseeker]

Hi there. 

This is a known IRS issue, it has nothing to do with Turbo Tax. The project fix date for the IRS is 2/5/2023. I hope this helps. 

[bcridez]

You can add me to the list...I have been banging my head against a wall and now we wait...until 2/5..?

[BJRUSH]

thank you for clearing that up for me.  I spent an hour with turbotax software expert trying to figure out how to fix the error and couldn't find anything.

Thanks!!

[gregkzn]

I just got off the phone with Turbo Tax "expert" She didn't know of the issue until she took some time and read some information on her end. She stated that the IRS knows of the issue and said the fix will be finished around 02/06/23, She said filing after this date electronically should work. This is very frustrating 

[salemlawyer]

@Em53 You seemed to have found the issue. Simple solution is to do nothing and wait until after 2/5/2023 to e-file. But I would check back to the IRS link and see if its been resolved prior to re-filing. Sort of pathetic that TurboTax is not on top of this.