turbotax incorrectly submitting Form 8960 when I don't have an investment income causing federal to reject it

[thisisatest]

It seems like there is a bug in the software that is incorrectly (and unnecessarily) filing an 8960 which is 

Net Investment Income Tax— Individuals, Estates, and Trusts. When I don't have any investment income.

The 8960 form is populated with my income in box 4a amount X and 4b -X (where X is the income)

This results in this filing error: 

If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to Form 1040, Schedule 1, 'Rental RealEstateIncomeLossAmt' unless all of the following conditions are true: 1) Filing status of the return is Married filing jointly or Qualifying widow(er) and 2) Form 8960, checkboxes 'Section6013gInd' and 'Section6013hInd' are not checked and 3) Form 8960, 'FilingThresholdAmt' equals 125000. (rule F8960-019-03)

I confirmed with a live expert from tt that this shouldn’t be happening and they said try filing again in a couple of weeks. 

Posting here just in case someone else ran into it. Hopefully we get a time estimate for a fix. 

Edit:

Turns out ALOT of people are running into this! https://ttlc.intuit.com/community/taxes/discussion/federal-return-rejection-reject-code-f8960-019-04... 

here is the thread... 

[ee-ea]

Try this

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/view-delete-forms-turbotax-onl...

[thisisatest]

Thanks

when I try to delete the 8960 form and the worksheet I get a message that form has been successfully deleted but the form list still shows it after I refresh.

[beebe95]

Too late.  While this email tries to explain the issue, TurboTax has delayed any response to the issue for the last 9 days.  I already have my taxes being addressed by a professional.  The "professionals" only look up this issue on the web, just like everyone else.  This is not service.  If Turbotax really cared about not being in this position with pissed off customers, then you should have been a lot more proactive.  My transactions, the last that there will ever be with Turbotax, have now been disputed.  This is such an incredible embarrassment to your company and reputation.     -former loyal customer 

[Hermitcrabaz]

My return was accepted on 2/19 after previous rejection.  I had the same issues as everyone here.  I have a Schedule C basically business contractor profit that was not passive income.  That amount was placed by Turbo tax on line 4a of 8960.  (even though I have no real estate profits).  Then on 4b is the exact same amount but a negative value canceling it out and it shows a "0" on 4c.  There is also a negative amount on line 5a "net loss of disposition of property" but I had no property, the amount listed is my total capital gains loss from stocks this year.  Line 5 of schedule 1 is blank.  Line 17 on 8960 does have a positive amount which is 3.8% of my dividends and interest minus my capital gains losses which is the correct amount.  That was auto placed correctly on my 1040.  On my 8960 works form it listed the total amount of business income(profit) on the line "adjustment for business or trade income not subject to net investment tax".   I did notice that a schedule E was autogenerated at some point, so I just deleted that form.   What is interesting is that turbo tax showed no errors, and I filed, and it was rejected.  On the rejection explanation it said try again on 2/19.  So basically, I did not have to change anything other than deleted schedule E.  This time it was just accepted.  Everything looks the same as it did when it was rejected.  So the IRS must have changed something.  But wanted to update people that it did go through today for me.  I still think it is unusual the way lines 4a and 4b are worded that a small self business income is listed there.  Other advice to delete form 8960 is wrong.  if you make over 250,000 married filing jointly and have investment or dividend income you have to do this form.  I am not a tax professional at all.  Just a TurboTax user.  But it went through today for me with pretty much changing nothing.