Filing taxes can be a challenging task and many individuals rely on tax preparation software like TurboTax to simplify the process. However, even the most advanced software can sometimes encounter errors, which can lead to confusion and frustration for taxpayers may encounter is related to Form 8960, which is used to calculate the Net Investment Income Tax (NIIT).
In the article, we have discussed the Form 8960 TurboTax error and will the IRS accept your return if you delete your 1099s.
Understanding Form 8960 and the Net Investment Income Tax (NIIT):
Form 8960 is used to calculate the NIIT, which is a 3.8% tax imposed on certain investment income for higher-income individuals. This tax applies to individuals, estates, and trusts that meet specific income thresholds.
Form 8960 error
Form 8960 error is not a TurboTax error, it is actually an error on the IRS side and only IRS can fix it. The rejection of returns may occur due to the presence of Business Rules F8960-019-04 and F8960-003. It is necessary to make modifications to these business rules in order to align them with the recent changes in the instructions for Form 8960 (Tax Year 2022). These changes specifically pertain to the inclusion of Schedule C (Form 1040) amounts reported on Schedule 1 (Form 1040), line 3 and Form 1041, line 3 in the Specific Instructions for Line 4a.
Will the IRS accept your return if you delete your 1099s or your fudge the numbers?
Several individuals have shared strategies to prevent the occurrence of mistaken rejections. These methods include removing 1099s from their reports, which essentially means not reporting certain income, manipulating figures by entering false rental income, or entering zeros instead of adhering to the instructions for Form 8960.