Form 8960 Investment Income Surcharge

[Edward801]

The investment income surcharge according to Form 8960 does not apply to capital gains related to sale of NUA shares (company shares withdrawn from a 401-k account), up to the 401-k withdrawal price.  Line 5 of  8760 provides for this exclusion as explained in the form's instructions.  TurboTax does not provide a means of entering the Line 5 exclusion via its Q &A.  It can be entered manually, but then the return does not pass the check for electronic filing.  I have alerted TurboTax to this problem in 2024, but no corrective action has been taken.

[dmertz]

I think that the NUA amount needs to be entered on TurboTax's Form 8960 Worksheet, Line 5b Adjustments for gain or loss on dispositions, and I think this can only be done in forms mode of the download version of TurboTax.  I can't find anywhere to make this entry in step-by-step mode of the download version of TurboTax and I suspect it can't be done in the online version of TurboTax either.

[Edward801]

Dmertz Level 15 is correct.  The NUA capital gains exclusion from the investment tax surcharge must be manually entered in Line 5b of the 8960 Form.  Can be done in the on-line version, but I believe that this requires printing and paper filing of the return with an explanation of the basis for the 5b entry.  I filed an amended return w/o problem in this manner last year.  

Edward801