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 was missing Form 8962 the IRS sent the taxpayer a letter requesting they complete and submit the form by itself. Beginning with tax year 2021, a return that ought to include Form 8962 simply rejects.
To resolve the reject, the taxpayer needs to do one of two things:
- Give the preparer the Form 1095-A(s) they received from the Health Insurance Marketplace so that the preparer can complete Form 8962.
- Add a statement to their tax return explaining why they don't need to file 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.
Important notes about this reject:
- A return gets this reject because the IRS has information that the taxpayer, spouse, or a dependent has Marketplace insurance and/or received advance premium tax credit for marketplace insurance.
- This reject was added in 2021 so returns may be corrected and avoid being kicked into errors, which would cause significant delays in funding the refund.
- This was the IRS’s top reject in 2021 across the country, across all software vendors.
- To correct this reject, include either (a) a properly completed Form 8962 or (b) a statement disputing the need for Form 8962.
Resolving the reject
If the taxpayer had marketplace coverage and provides you with their Form(s) 1095-A, enter their information on Form 8962.
In TaxSlayer 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.
Note: This article provides information about an IRS reject and how to correct it. It is not intended as tax advice.