What is Form 8960, and why is it in my return?
Form 8960: Net Investment Income Tax – Individuals, Estates, and Trusts is a recent tax form.
If you have investment income and your modified adjusted gross income exceeds $250,000 (married filing jointly), $125,000 (married filing separately), or $200,000 (all other filing statuses), then you will most likely be subject to the 3.8% additional tax.
The form is used to calculate and report the 3.8% additional tax on investment income for the Affordable Care Act provisions that went into effect starting with the 2013 tax year.
Note: Prior to 1/15/15, some customers with a state refund incorrectly received an error message in the federal review section that triggered Form 8960, line 7 worksheet. This has been resolved as of 1/15/2015. If you are using the download/desktop product, remember to update the product. See How do I update my TurboTax software. If you are using TurboTax Online, no further action is required.