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Level 2

Question

What is reject code f8960

Forum|Forum|3 years ago
January 29, 2023
20 replies
0 views

My federal return keeps getting rejected and I don't understand why am I getting this reject code. Form 8960 has to do with Rental income loss or gain and I've never had rental income. Like ever. Turbotax's suggestion is to 'wait a few weeks and try again' or print the returns and mail them. So let me get this straight... TT has been paid to file taxes, although they can't. Their solution is to do it myself. How about a refund then??

TurboTax Deluxe Online

Show previous replies

pdyson

Level 2

I have this same issue. See the detailed post at https://ttlc.intuit.com/community/taxes/discussion/federal-return-rejection-reject-code-f8960-019-04-processing-error-form-8960-net-investment-income/00/2839287

Supposedly this is an IRS issue that will be fixed by tomorrow (Feb 19, 2023). IMHO, Even if that is so, apparently Intuit has known about this issue, so it would have been nice to add a warning BEFORE we filed, rather than cause frustration with the rejected return.

Sbsla

Level 2

Any update folks? My online submission was rejected on 2/9 and it's been 10 days since I tried since then.

Please advice.

marytony

Level 4

I just tried e-filing AGAIN for the 9th time. waiting for the rejection now. it's been 45 minutes, that's the longest amount of time yet, but I'm still not hopeful. typically it's rejected within 20 minutes. It is a holiday weekend too so that may be why it's taking longer.

I don't see any update on the irs site about the issues. They still show the same estimation of mid Feb-March. We'll see shortly.

I don't believe there is a limit to how many times you try to file. Per the IRS, as I said in the other post about this issue, there is only a limit of filing times if it has to do with a security item such as a wrong social or address, etc... then they will only allow 5 tries. I've tried e-filing federal now 9 times and AZ state 4 times, just because I have to wait to file the fed before trying the state again since tt asks for a payment again. tt told me to wait for the fed to be accepted then call them for a new code to re-file the state.

BligBlueLaser

Level 5

@marytony

The suspense is killing me!!!

Please us know what happens with your filing this morning.

bobf7

Level 2

I had the same problem. It is an IRS problem not a Turbo Tax problem. the IRS asked all the tax programs to put Schedule C information into the form but did not account for this information impacting other parts of their checks and balances. Bottom line is that we have had to wait for the IRS to fix the problem on their end. There is nothing wrong with our Turbo Tax returns. Now the information from Turbo Tax says the IRS will have the problem solved so that we can refile our taxes by 19 February which is today as I write this.

nitinguptaji

Level 2

Is this 8960 form error issue resolved? Today is Feb 19

marytony

Level 4

It's about 2hrs & 45 mins since I e-filed and still see it PENDING. just a suggestion if you're watching your own, you have to refresh the tt screen by clicking on CHECK STATUS.

There is still no update on the IRS site stating it's completed. I think the only way we'll know is when the return is accepted by the IRS. I'm just going to guess that won't be until Tuesday because of the holiday weekend. I'll post as soon as I get either an accepted or rejected. I do need that form and I cannot get an ACCEPTED to my e-file without that fix.

By the way, I did ask an H&R employee about the problem on their site and they do have the same issue as tt. In the beginning, people were able to file and get an ACCEPTED from the irs but now that H&R employee thinks all their accepted returns before it was caught will be rejected, but that was just his opinion. Not based on any memos or notices or anything else from corporate, just chatter amongst the employees

costasforums

Level 2

I filed with HRB on the 17th as that was the guidance they gave me. My return is still 'pending'. Been 2 days.

favoradet

Level 2

I just e-filed again and federal accepted in 18 minutes.

California state got accepted shortly after.

February 19 is the code ‌🙂‌

Thank you guys. This forum is very helpful.

RKR2

Level 3

My federal return was just accepted in 36 minutes (after being rejected x 4 via TurboTax since January 28th and rejected x 1 from H&R Block). So exciting!

rwgjr

Level 2

I got the emails that said both my federal and state returns were accepted. However, When I check the e-file status in Turbo Tax Desktop it still says rejected with the same message about filing today. My state income tax site does confirm the tax return was received.

RKR2

Level 3

I logged out and logged back in and now Federal says "accepted" and state still says "pending."

RickDTT

Level 2

Filed and accepted 2/20/23

theThip99

Level 2

Me too! It's fixed folks!!

canes1seven

Level 2

Anyone try again recently?

Queue__Underflow

Level 2

Yes, see above; this issue was resolved over the weekend and many people have been getting their federal returns accepted now.

michellehomebiz

Level 8

This review error of "MWP qualifying as difficulty of care....." is due to the IRS 8960 update/error.

Issue is with TurboTax desktop allowing 1099 MISC to be entered into Schedule C as income.

Even though there is a box to select and users are allowed to enter their 1099 MISC inside the Business, the Employer should have actually issued a 1099 NEC, if the taxpayer is wanting to enter this into a Schedule C.

SOLUTION / Work around:

Go to Schedule C, income, update. Remove 1099 MISC.

Go to General business Income, just below that, and click start.

Enter this income in box as 1099misc and the amount.

This allocates the income properly to the Schedule C and reports that it's a 1099 misc for the business.