Customers who file a return which should include Form 8962, Premium Tax Credit, may receive the following Reject Code, F8962-070:
- “The e-File database indicates that Form 8962 or a binary attachment with a description containing "ACA Explanation" must be present in the return.”
If you received this rejection, your client or a dependent on the return had or has coverage through the marketplace Healthcare.gov for 2021.
Some clients do not realize they have marketplace insurance until they contact the office. Healthcare.gov
This rejection requires your clients to get the 1095a so that you can file the return. Your client will get this rejection anyway or any place they file; this is an IRS rejection.
Resolution:
Reject Code F8962-070 is a legitimate reject code.
The IRS implemented this check for taxpayers who received the Premium Tax Credit (PTC) payments during the 2021 Tax Year. Taxpayers must add Form 8962 to the return to reconcile the payments received against the credit calculated and either pay back or get an additional refund.
Navigate to the Main Info form and search for the question under the Taxpayer Information section that indicates that the taxpayer/spouse/dependent received insurance through the Marketplace.
In addition, the Taxpayer must include information from Form 1095A, Health Insurance Marketplace, as part of their return before submitting.
- “If you or anyone in your household enrolled in a health plan through the Health Insurance Marketplace, you’ll get Form 1095-A, Health Insurance Marketplace Statement. You will get this form from the Marketplace, not the IRS.” Source: IRS, Form 1095-A, Health Insurance Marketplace
- “You will use the information from Form 1095-A to calculate the amount of your premium tax credit. You will also use this form to reconcile advance payments of the premium tax credit made on your behalf with the premium tax credit you claim on your tax return. To do this, you will use Form 8962, Premium Tax Credit, which you file with your tax return.” Source: IRS, Form 1095-A, Health Insurance Marketplace
Additional Resources:
IRS.GOV>About Form 8962, Premium Tax Credit
IRS.GOV>Health Insurance Marketplace Statement
