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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.
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.
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.
I believe this is one of those errors before the updates
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...
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 …
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.
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.
Ditto just about the same dates as you. Federal was deposited today the 9th
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.
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.
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.
Also getting my refund on March 15, looks like the increased refund amount after the IRS wiped out my NIIT from Form 8960.
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...
I got my refund direct deposit this week. All seems good. 🙂
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