What is reject code f8960

[bobf3]

I agree with previous comment that line 4B is supposed to be negative and offset line 4A if it is a self employment income in which you are an active participant. In that case, the 3.8% tax is only levied against interest and dividends if your AGI is over $250,000.

[Queue__Underflow]

For me it looks like the IRS on line 8 of Form 8960 added line 4b instead of line 4c. Since I had a lot of self-employment income, this makes line 4b and therefore line 8 highly negative. Because NIIT is calculated on the smaller of line 8 and another amount, this incorrectly wiped out my NIIT. I know they are underfunded and understaffed, but how in the world is the IRS still making a mistake like this in March??? This is not exactly a rare scenario.

[coastliving2023]

I had mostly business expenses and not a lot of self employment income so my number in column 4b is positive and not negative. My AGI is over 250k (W2) and I am single so maybe that's why the IRS levied the 3.8% tax. Not sure if this will be the case for everyone else, it's just my experience. I will update my post once I know more. 

[TKisamore]

I believe this is one of those errors before the updates

[BligBlueLaser]

The majority of my line 4a was non-passive income (i.e., Schedule C) but a tiny bit was passive and TT calculated a NIIT of $228 on the diff between 4a and 4b (i.e., 4c).

I just checked my transcript and with "per computer" calculations, I now have a credit of $228. So they wiped out the entire NIIT even though I think I may actually owe that money. 

I'm just going to leave it there for six months and see what happens...

[hugies]

I filed the same day as many of you 2/19 and my return was accepted (still shows up on the tracker as received) but my transcripts all say that no return was filed.  Not sure what that means …

[coastliving2023]

Not sure why your transcript is not populated yet however, I see that the IRS' excel file for Known Issues ( you can google this) has a resolution date of March 19, 2023 so maybe after this date we will start receiving refund dates..at least that's what I am hoping for. 

[RKR2]

Just as an FYI to everyone:

-My state refund was deposited about a week ago

-My federal refund was deposited yesterday (!!)

-I submitted my taxes (and they were accepted by the IRS) on February 19.

-When I checked my status on the IRS website, it did not flip from "return received" to "refund approved" until 1-2 days before the deposit.

[gregkzn]

Ditto just about the same dates as you.  Federal was deposited today the 9th 

[FlyA777]

Did you look at your transcript before you received your refund?

Wondering if it showed any changes.

My transcript shows me owing an extra $126 (reduced my refund by that much).  If correct, I'll be happy to pay it just to receive my rather sizable refund.

Filed on 2/19.....has been "processing" ever since.

State refund received about a week ago.

[FlyA777]

Update....

Mine changed to Refund Approved overnight on the 10th.  Supposed to be sent by the 15th.

And this was with a transcript that showed a change in my refund amount.  Not sure if I'm getting the TT original amount or the updated IRS amount.

[coastliving2023]

Same here..my status changed to "approved" today and I will get my refund on March 15. Mine is pending in my account and it has indeed been reduced.

[Queue__Underflow]

Also getting my refund on March 15, looks like the increased refund amount after the IRS wiped out my NIIT from Form 8960.

[BligBlueLaser]

@Queue__Underflow 

Same here. My non-passive income was zeroed out on Line 4b when I filed, but the IRS seems to have wiped out a small amount of "what-I-thought-was-passive-income" as well (a 1099-MISC from my bank).

Not complaining - they know best...

[cincymom12]

I got my refund direct deposit this week.  All seems good.  🙂