If an individual tax return should include Form 8962, Premium Tax Credit but does not, it will reject with code F8962-070:
The IRS began using this reject in tax year 2021. Prior to 2021, if the tax return is missing Form 8962 the IRS sends the taxpayer a letter requesting they complete and submit the form. Beginning with tax year 2021, a return that ought to include Form 8962 simply rejects.
To resolve the reject, the taxpayer needs to give the preparer the Form 1095-A they received from the Health Insurance Marketplace so that the preparer can complete Form 8962.
If the taxpayer is uncertain whether or not they were covered by Marketplace insurance, or if they cannot locate Form 1095-A, they should log in to their account at healthcare.gov and retrieve a copy of the form there.
- Reject Code F8962-070 is a legitimate reject.
- It is a new reject beginning tax year 2021
- It was added so returns may be corrected and avoid being kicked into errors, which would cause significant delays in funding the refund.
- This is the IRS’s top reject in 2021 across the country, across all software vendors.
- If the reject occurs, the IRS has information that the taxpayer, spouse, or a dependent has Marketplace insurance, and/or received an advance payment for marketplace insurance.
- These returns must include either a properly completed Form 8962 or a PDF attachment with their ACA calculations or a statement disputing the need for Form 8962.
After receiving Reject F8962-070, if the taxpayer determines that they want to submit a statement disputing the need for Form 8962 they can do so by taking the following steps:
TaxSlayer Pro Desktop
- In the Personal Information menu answer YES to the question "Health Insurance through the Marketplace/Exchange?". (While this statement isn't strictly true, it's the way to access the Form 8962 menu.)
- Next, go to Payments, Estimates & EIC > Premium Tax Credit->PTC (8962) > ACA Explanation for Not Filing Form 8962. The two most common explanations are available to be selected to prefill the statement, either that the taxpayer simply had no insurance, marketplace or otherwise, or the taxpayer had insurance through their employer so had no need for marketplace insurance. A third option allows the taxpayer to include their own ACA Explanation. Select the desired explanation.
In ProWeb, the option to include an ACA explanation is only available if the return has rejected for code F8962-070. If the return has received that reject, and the taxpayer did not have health insurance through the Health Insurance Marketplace, do the following steps.
- Open the return and navigate to the Health Insurance section.
- There will be two "No" options available to the question regarding whether or not the taxpayer had insurance under the Affordable Care Act. Select the appropriate option, that no one in the household had ACA insurance or that no one had it and they were covered under other insurance.
Note: A return that includes the ACA explanation will not include Form 8962.
For additional information and to get help locating the documents needed to file a complete, correct tax return, visit healthcare.gov.