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

[withag]

Form 8960 is not listed in that link of known issues you posted. 

[toothy]

Yes, it is. Row 74.

[withag]

Thanks.  Didn't know there was an entire spreadsheet of issues!

[ddroberts1000]

Hey everyone,

Decided to try with HR Block, just because. 

Filed the same way, same information.

My return was accepted almost instantly. This is not just an IRS issue, but a TT issue they are waiting to correct.

[Taxaccountiscool]

This is 100% NOT an IRS problem but 100% a TURBO TAX issue. I keep getting my e-filed rejected also and the form 8960 code so I checked it out and last year, there was NOTHING in box 4 of that form because I had no rental income. This year, I still had NO rental income but Turbo Tax is incorrectly putting my self employed regular business income on lines 4a and 4b of Form 8960 even though it's not rental income.

Something is wrong with Turbo Tax and they need to fix it ASAP. My business income was not on 8960 line 4 last year and shouldn't be this year either. THAT is the problem, and there is no way to manually edit that form to say 0. I had no rental income, nothing should be there.

[Taxaccountiscool]

Bottom line is that this shouldn't be marked as solved. Turbo Tax should NOT be putting regular business revenue in the rental income box when there was absolutely no rental income. Even if the IRS has an issue with for 8960 on their end, when they fix it, it won't fix the real issue which is that Turbo Tax is putting something where it should not go, hence why people are able to actually e-file with other software and no issues right now.

I'm shocked Turbo Tax hasn't said anything about this or when they will fix it on their end. It's not the IRS issue, the IRS issue with the form is assuming everything on it is filled out correctly which it's not when it comes to Turbo Tax.

[BligBlueLaser]

@Taxaccountiscool 

not here to defend TT - they’re doing an awful job.

However it does appear that the IRS instructions for 2022 are changed: 8960 Line 4a should include Schedule C income, and Line 4b you subtract the portion of that which is non-passive.

At least some of the problem seems to be that the IRS changed the instructions for the form but did not fix the “business rules” for screening an e-filing that follows the new instructions.

None of that is to say that TT is not part of the problem.

[BligBlueLaser]

@ddroberts1000 

Sorry to ask but are you saying that your filing through HRB included a Form 8960 with Schedule C amounts on lines 4a/4b?

[TheMasonJar]

Just wanted to confirm, you efiled using TT, rejected and have successfully filed with HR Block online, correct? If so, I may do the very same, this rejection issue is concerning 

[ddroberts1000]

For anyone wondering, yes I was rejected twice using Turbo Tax. Went to HR Block, filed the exact same. Was accepted very quickly.

Things to note:

I did NOT check to see if HR populated an 8960 for me or not. Not near where I can check my documents.

I did not have any investment income, or rental income. My only 1099 or SCHD C were unemployment, and business losses from paying commissions. 

TT was writing those loses in 4a but also wasn’t creating the proper forms/was not filling in zeros where they needed to be.

As for why HR worked, I have no idea, and am obviously nervous about it until that DD is in my account.

[toothy]

I just filed with H&R Block and my federal filing was accepted within 5 minutes after being rejected with TT 3 times. There’s something wrong with TT regardless of whatever the IRS issue is.

[marytony]

I checked again this morning, no changes on tt, still have a rejected return. I agree that even if a return is accepted, you don't know what's going to happen until you actually have your DD in your bank account. I'd love to hear back from anyone that has gone elsewhere and did in fact receive their DD.

I sampled both H&R and eTax. Both are going to take some getting used to but really, when you need your refund... you'll do whatever it takes. BUT, who's to say when you try to file again on 2/5 or even 2/9 like suggested that you won't then be told, 'you need to paper file' and you will have wasted at least a week waiting for the fix on tt. 

It would be very decent of tt to have one of their many 'tax experts' chime in here and provide more information. I mean with all the repeat customers year after year, it would be the right thing to do. Some type of statement explaining it in a bit more detail and maybe even telling us if there's any difference in going elsewhere or if it's also a waste of time.

Last year, I had to go to the TAX Advocate Service to get help getting my refund from the IRS. They held it hostage for MONTHS, apparently for no decent reason. There was a $1 discrepancy in my total vs a W-2G from a casino. IRS kept telling me that isn't possible over $1, but yet, when I finally figured it out and filed an amended return, they released it. My point is it really doesn't take much for their reason to hold your refund so is it the right thing to do to go somewhere that allows the filing, even though the problem still exists on the IRS end ?? Is it going to be a problem for filers that were accepted before the IRS fix ??? are they going to have to file amended returns ?? Is it better to wait until just after 2/5 when the IRS fix is completed and wait just a couple more days for tt to fix the issue too ? We should know it's completed as soon as there's an update available. That's an easy check each morning by clicking on the top left corner ONLINE and CHECK FOR UPDATES. I think I'm going to wait it out.

I really appreciate all the comments that provide information for all of us here. It's very nice that everyone tries to help out. Especially when this situation has only caused all of us so much stress !

Again, TT should step in with information, it would be the right thing to do.

[rjkastner61]

Agree - the IRS Website/Excel Spreadsheet makes it clear there are new changes for tax year 2022 Re: Form 8960 issues - mainly with 1099-NEC's/1099-Misc Other Business/Income - a Schedule C entry.

So, when TT adds, then subtracts any income entry from Schedule C - on Lines 4a, 4b Form 8960 - the carry over to 1040 schedule 1 is not working- thus the rejection code.

The IRS is "updating" the business Income "Rules" for Form 8960 which should prevent the erroneous e-file rejection code 8960-019-04 I received.

It would REALLY be helpful if TT would acknowledge this and make all users aware when this will be updated with the TT Software and "OK" to refile electronically and not get rejected!

Some posts has said we will need to delete and then re-enter any "Other/business Income" once TT fixes their software. Since it looks no refund is possible with TT once "paid" - I guess I will wait a few days.

Very frustrating TT is not on top of this to their customers.

[BligBlueLaser]

@rjkastner61 

Agreed, especially with no refunds might as well give it a few days and try again.

Though I'm not clear on why you'd need to delete/re-enter "Other Income" if the issue is at the IRS end of things. If that is specific advice from TurboTax, it sure sounds like an acknowledgement from TT that something is amiss at their end as well.

[mota_nginya]

I am in exactly this same position. This is my 24th year using TT and have never ran into an issue like this before. I just can't bail out and try a different company like HR block because all my tax information is in this system. If they can't get this fixed, they should refund my payment so that I can look at other options.