5 Fixes For Form 8960 Turbotax Error

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The stress of tax season can be overwhelming, especially when faced with unexpected errors. One common issue that TurboTax users may encounter is the Form 8960 error. This article will delve into the possible causes of this error and provide 5 fixes to help you resolve the issue and successfully file your taxes.

Understanding Form 8960 and the Error

Form 8960 is used to report the net investment income tax (NIIT), which is a 3.8% tax on certain types of investment income. This tax was introduced as part of the Affordable Care Act (ACA) to help fund healthcare reform. If you receive investment income, such as dividends, capital gains, or rental income, you may be required to file Form 8960.

The error message you receive may indicate that TurboTax is unable to process your return due to issues with Form 8960. This could be caused by a variety of factors, including incorrect or incomplete information, software glitches, or changes to tax laws or regulations.

Fix 1: Review and Update Your Investment Income Information

The first step in resolving the Form 8960 error is to review and update your investment income information. Ensure that all relevant income sources are accounted for, including:

• Dividend income
• Capital gains or losses
• Rental income
• Royalties
• Interest income

Verify that the information you've entered is accurate and complete. Check your tax documents, such as 1099 forms, to ensure that all income is reported correctly.

Steps to Update Investment Income Information:

• Log in to your TurboTax account and select the return that's causing the error.
• Navigate to the "Investment Income" section.
• Review each income source and update any incorrect or incomplete information.
• Save your changes and attempt to re-file your return.

Fix 2: Check for Software Glitches and Update TurboTax

Software glitches or outdated versions of TurboTax can cause errors, including the Form 8960 issue. Ensure that you're running the latest version of TurboTax and check for any software updates.

Steps to Update TurboTax:

• Close and reopen TurboTax to ensure you're running the latest version.
• Check for software updates and follow the prompts to install any available updates.
• Restart your computer and attempt to re-file your return.

Fix 3: Resolve Errors in Form 8960 Calculations

If the error is related to Form 8960 calculations, review the information you've entered and ensure that all calculations are accurate. Check for any errors in the following areas:

• Net investment income (NII)
• Modified adjusted gross income (MAGI)
• Net investment income tax (NIIT)

Verify that all calculations are correct and update any incorrect information.

Steps to Resolve Form 8960 Calculation Errors:

• Log in to your TurboTax account and select the return that's causing the error.
• Navigate to the "Form 8960" section.
• Review each calculation and update any incorrect information.
• Save your changes and attempt to re-file your return.

Fix 4: Verify Form 8960 Thresholds and Limits

Form 8960 thresholds and limits can impact the calculation of net investment income tax. Verify that you've correctly applied the following thresholds and limits:

• MAGI threshold: $200,000 for single filers, $250,000 for joint filers
• NII threshold: $200,000 for single filers, $250,000 for joint filers
• NIIT rate: 3.8%

Ensure that you've correctly applied these thresholds and limits to your return.

Steps to Verify Form 8960 Thresholds and Limits:

• Log in to your TurboTax account and select the return that's causing the error.
• Navigate to the "Form 8960" section.
• Review each threshold and limit and update any incorrect information.
• Save your changes and attempt to re-file your return.

Fix 5: Contact TurboTax Support or a Tax Professional

If none of the above fixes resolve the Form 8960 error, consider contacting TurboTax support or a tax professional for assistance. They can review your return and provide personalized guidance to resolve the issue.

Steps to Contact TurboTax Support or a Tax Professional:

• Visit the TurboTax website and click on the "Support" tab.
• Contact TurboTax support via phone, email, or live chat.
• Alternatively, consult a tax professional who can review your return and provide guidance on resolving the Form 8960 error.

Don't let the Form 8960 error hold you back from filing your taxes. By following these 5 fixes, you can resolve the issue and successfully file your return. Remember to stay calm, patient, and informed throughout the process.