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April 18, 2022
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Form 8960 doesn't apply to my situation. How do I get rid of it? $20,000 bug

  • April 18, 2022
  • 2 replies
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Per my accountant, Form 8960 isn't required for a distribution that I received because I'm an active participant.  Turbotax is calculating a 3.8% tax that comes out to over a $20,000 tax.

 

I tried deleting the forms, but they keep coming back.  Since I use online, I've read that I can't directly modify the forms.

 

From what I can gather on this topic, this is something turbotax hasn't been able to handle.  Other people have switched to h&r block, but I don't really have that option right now.  And trying to redo everything (I know I can import, but still) within the offline version is a pain.  It takes me months to do my taxes and I've spent hours tracking down a tax that Turbotax says that I owe, but don't.

 

Is there another option?

 

Thanks!

Best answer by Anonymous_

@sb11 wrote:

Is there another option?


No, unfortunately, TurboTax does not support certain adjustments to Form 8960. 

 

https://digitalasset.intuit.com/DOCUMENT/A51oKyg2O/032522-2021-unsupported-calcs-L1FQfTTgn.pdf

 

The unsupported adjustments would have to be made using Forms Mode (which requires a desktop version of TurboTax).

2 replies

April 18, 2022

what type of distribution? active participant in what? what line of the 8960 is this amount appearing on?

Employee
April 18, 2022

@sb11 wrote:

Is there another option?


No, unfortunately, TurboTax does not support certain adjustments to Form 8960. 

 

https://digitalasset.intuit.com/DOCUMENT/A51oKyg2O/032522-2021-unsupported-calcs-L1FQfTTgn.pdf

 

The unsupported adjustments would have to be made using Forms Mode (which requires a desktop version of TurboTax).

sb11Author
April 18, 2022

Thanks for the reply @Anonymous_.  Looks like I'll need to file an extension and then look into taxslayer or h&r block's services.  Thanks again!