2014 Federal 1040: Net Investment Tax
Starting in 2013, an individual federal tax return may include a 3.8% tax on net investment income in excess of a threshold amount based on filing status. This tax is calculated on Form 8960.
Certain taxpayers, with a 2014 Schedule K-1 from a Partnership or S Corporation that included “other non-passive deductions”, may have to file an amended federal return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following are true:
- You filed your 2014 federal tax return prior June 3, 2015 AND
- Your tax return included Form 8960 (Net Investment Tax) AND
- You had a 2014 Partnership Schedule K-1 with a code W in Box 13 and an amount for “other non-passive deductions to be reported on Schedule E, page 2 ” AND/OR
- You had a 2014 S Corporation Schedule K-1 with a code S in Box 12 and an amount for “other non-passive deductions to be reported on Schedule E, page 2 ”
If you are affected, you may have underpaid your federal tax. You may need to amend your federal tax return.
To amend your return:
- Follow these amend instructions for the TurboTax Online product.
- Follow these amend instructions for the TurboTax CD Download product.
- After you make the changes to your tax return, you will need to mail a copy of your amended return.
- Your printed return(s) will include instructions on how and where to mail it.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the 2014 Federal 1040: Net Investment Tax.