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Level 2

Question

What is reject code f8960

Forum|Forum|3 years ago
January 29, 2023
20 replies
5 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

affordable2020

Level 7

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.

bculberson1Author

Level 2

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."

RobertB4444

Level 15

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

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bculberson1Author

Level 2

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

Thanks for your help!

JohnB5677

Level 15

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

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lmp7677

Level 2

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

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.

What needs to be done:

This return cannot be electronically filed due to a processing error on Form 8960, Net Investment Income Tax. There is currently no estimated date for when this will be resolved. You have two options: 1) You may wait a few weeks and attempt to resubmit this return, or 2) You may print and file the return by mail. This message will be updated when a resolution date is identified.

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

cdoming22

Level 2

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

RalphH1

Level 6

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)…

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gochnoj

Level 2

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

Troy61

Level 2

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.

JamesG1

Level 15

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

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Hslama0202

Level 2

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.

dgpaul10

Level 2

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

beachnit

Level 3

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!

beachnit

Level 3

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?

ThomasM125

Level 15

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.

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Swansea7

Level 2

Feb 7th

Issue not fixed

tjforeman

Level 2

I don't think its the form, as much as certain things that hit it. I removed the 1099 nec and still had dividend income on the form, and the tax return went through. I will turn around now and file an amendment for the small amount associated with the 1099nec. I was not about to wait until March for my refund because of some stupid form glitch!

Steve Miller2

Level 2

I expect more from Turbotax. If the same return can be submitted using HR Block, then TT is partially at fault. What is TT doing to get around the error? I have not heard this point. Also, the issue seems to be around for over a week. TT should provide much better error messaging. The error message they just transferred from the IRS is poor. And, this seems to be affecting many TT customers. I would like to know more than just suggesting to wait.

rmwarby

Level 2

I'm trying to file using another provider, but TurboTax won't give me a refund because I didn't use their CD or Download product. What a joke. I will never use TurboTax again after this experience.

"We are unable to process the refund for TurboTax Online product Case #### because our Satisfaction Guaranteed policy only covers TurboTax CD/Download products. TurboTax Online is designed not to charge the customer until after they choose to file, so it is not covered under the Satisfaction Guarantee."

I've tried to remove the forms. I have been on the phone with several agents and I am at my wit's end over this.

amk3

Level 2

Tried to submit today. Rejected. If I had not already paid the fee I would use another tax platform.

Troy61

Level 2

Turbo Tax could introduce a work-around to this problem. It is a symptom of lazy coding that creates a document unnecessarily, rather than by working through a thorough logic tree. Other providers with better algorithms do not have this issue.

Yes the IRS has a problem, but Turbo Tax could avoid the problem ever being encountered for a majority of submissions.

It is just a lazy response to a major issue with their software that is impacting thousands of users.

oliveandyork

Level 2

TT is now saying "This issue will be resolved on February 19, 2023"

Doubt that's true, after the horrible way they've dealt with this, and not addressed it, and lack of communication, so take it with a grain of salt or two, but that's what they're saying now.