What is reject code f8960

Are you sure the error refers to Form 8960 or Form 8962? Did you have insurance through the Marketplace? Obama care? Have you received a form 1095a from the marketplace?

Did you have any investment income ? 
Go back to the interview and check your entries in wages and income section of return . Look for data entry errors. The Form 8960 is for investment income so check through the income.section to see if there’s any entries in the investment section. 

This is a known issue on the IRS side of the equation.  Please look at this link which explains what's going on with your return.

I'm sorry you're dealing with the hassle but the IRS says that they'll have the problem fixed by February 5th.  You should be good at that point.

@bculberson1

It's definitely 8960: No Marketplace or ObamaCare (see error message below).

We had no Investment Income, but did have a 1099-NEC. Oddly enough the amount of the 1099-NEC is what's showing in Investment Income on the 8960 form. No idea why. I'll give it a few days and then look again.

"If Form 8960, 'NetRentalIncomeOrLossAmt' has a non-zero value, then it must be equal to Schedule 1 (Form 1040), 'RentalRealEstateIncomeLossAmt' 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."

Thanks, I was hoping that was the case. I'll try again next week and hopedully it'll be resolved.

Thanks for your help!

This error refers to Form 8960 Net Investment Income Tax Individuals, Estates, and Trusts.  The issue is known by the IRS and there is a resolution date of 2/7/2023.  Once fixed by the IRS, TurboTax will make their adjustments.

IRS Forms & Instructions revision dates

Here's what I found out, hope it's helpful!  I also had mine declined for this reason

First thing I said was, I DON'T have any rental income, what is this? Got online with Cody from support who was super patient and helpful.  But what's strange is when he looked up the error number, they had never heard about it before.  a 5 second search came up with this web page, so maybe they need to expand their resources.  But before I did that I was on the phone with him and I kept saying I don't have rental income, which the message seems to be saying I do. I don't need this form. I tried to delete it, it didn't work, Then i realized the only thing  on there was my simple interest from the bank. So i looked at last years taxes and sure enough, that form was included last year and filed. So I now know that form is ok to be included. Then with him still on the phone, I did my search. I found this site and some others, that clearly state this is an IRS problem that needs to be fixed by them. So the advice is to wait a few weeks and submit again, or mail it in. I didn't like either of those solutions, because I felt that was just a shot in the dark. But then I found out that the advice to wait a few weeks is to wait for the IRS to fix it. So now I've seen a fix date between feb 5 and feb 9 in different places, So I can continue to look to see when that is resolved and then submit again.  I was trying to do this early to get my refund before closing on a house, but don't think that's going to happen. I think the message should have been clearer. NetRentalIncomeOrLossAmt' , 'RentalRealEstateIncomeLossAmt', 'Section6013gInd' and 'Section6013hInd' , 'FilingThresholdAmt'  are not terms that are used on that form, to me ( a web developer) these look like programming variable names and not user friendly.  Not sure if this is a turbo tax description or IRS, but if it's TT, they need to make it more readable.  Just letting everyone know that you just need to wait to file until this is resolved. hopefully, soon

Having the exact same issue.  Please let the group know when this is resolved so we can all e-file again!

Hopefully we’ll be in business with this on February 5th (as discussed in this other TurboTax conversation, and on the IRS issues spreadsheet you can get here). As Imp7677 and others clarified, the verbiage the IRS gives us with the rejection is misleading (referring to rentals, etc.), as the actual form is for the extra investment income tax (that came with the “Affordable Care Act”). So we’ll all stay tuned (or tune back in)…

Same issue here. I wish the error code was linked to this discussion, it is not clear at all.

I do not have any rental income (I wish!)

So frustrated! I don't have rental income. My taxes are fairly simple and I can't file because of this. So annoyed. 

Well it's Feb 5 and still rejected.  So whatever they thought would correct it did not.  If they don't get thus fixed the paper return onslaught will be a nightmare to sort through.

Intuit could fix it on their end by not creating rental income forms when not needed.

Your tax return may be affected by an IRS filing issue outlined in this Best Answer.  If so, the IRS forecasts a resolution date of late February to Mid-March 2023.

IRS Known Issues and Solutions Files by Form Family

Forms availability says that IRS Form 8960 is available for use.

@Troy61 

Has anyone tried again recently? I’m getting this code as well and they said the fix would happen Feb 5 but sounds like someone tried yesterday and it was rejected again.

I just resubmitted my tax returns and they got rejected again. Guess I will wait another week and see whats going on.

Tried again with no luck. Spoke to Turbo Tax support and they still have no idea when it will be resolved other than in the Feb-March timeframe.

@RobertB4444 and others: there is another thread in the support forums where hundreds of folks are impacted and struggling to understand status. Please see the discussion for: federal-return-rejection-reject-code-f8960-019-04-processing-error-form-8960-net-investment-income/ (I am unable to provide a full link)

Folks on that thread are somewhat desperate for someone from Intuit to provide some insights and guidance, and unfortunately lots of folks are finding that filing with other tax software is solving their ability to successfully eFile. Help!

thanks

If you want to go ahead and file to get the refund for your closing costs, you can delete whatever is feeding into that form 8960 in that specific area that is "glitched." For example, just delete a 1099-nec, and go ahead and file without it. Then, file an amendment and mail it in with payment before the April deadline.....it's really not that difficult to file and amendment.

The official IRS page lists the resolution date as: sometime in late February to mid-March 2023.

The list can de downloaded here: https://www.irs.gov/pub/irs-schema/ty[product key removed]s-and-solutions.xlsm

It is a known IRS issue. Click here for known issues.

Looks like it will be corrected in late February to mid-March. This is not TurboTax but a known issue rejecting returns, try not to get rejected to many times before it will not accept, and please report all forms as instructed and applicable, per IRS guidance. 

Add me to the "watch list."  Same exact issue that you are all describing.  Driving me bonkers!  Two rejections... and I'm a guy who does NOT handle rejection well.  Lol.  Ok... I'm going to take a deep breath... enjoy a shot or two of good bourbon and wait a few days to see if this matter is resolved.  Please ANYONE... if you see if and when this matter is addressed please post it!

One more quick thought... our previous tax returns that are really quite consistent in scope and manner have NEVER generated a 8960 form.  We've done nothing new this year.  (E.g. we have had interest and dividend income in the past but that income has never generated this form.  It's just been added to our gross income figure.)  Is the 8960 a new form or is information we are entering on other sections of our return incorrectly generating this form?

Form 8960 for net investment income tax has been around for more than ten years. It is generated when you have investment income and your income is over $150,000 married/joint or $200,000 single filer. 

@beachnit 

It ain't you, it's the IRS.

Feb 7th

Issue not fixed