1040-SR - Desktop | Fixing Reject Code: F8962-070

How to Fix Reject Code F8962-070

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This reject occurs when a return is missing Form 8962, Premium Tax Credit, even though the IRS shows that the taxpayer, spouse, or a dependent had Marketplace insurance or received an Advance Premium Tax Credit (APTC).

The IRS began enforcing this reject in Tax Year 2021. Prior to that, the IRS sent letters requesting the missing form.

Why It Happens

• The IRS has records showing Marketplace insurance or advance premium credits were issued.

• The return was filed without Form 8962.

• The taxpayer did not provide Form 1095-A from the Health Insurance Marketplace.

How to Correct the Reject

Option 1: Add Form 8962

1. Ask the taxpayer for all Form 1095-A documents.

2. If they cannot locate them, have them log in to http://healthcare.gov to download the forms.

3. Enter the Form 1095-A information into the return to complete Form 8962.

4. Resubmit the return electronically.

Option 2: Add an ACA Explanation Statement

If the taxpayer confirms they do not need Form 8962:

1. In Personal Information, answer YES to “Health Insurance through the Marketplace/Exchange?”
   This unlocks the Form 8962 section, even if they did not have Marketplace coverage.

2. Go to:
   Payments, Estimates & EIC → Premium Tax Credit (8962) → ACA Explanation for Not Filing Form 8962.

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3. Select one of the standard explanations:

   • The taxpayer had no insurance at all.

   • The taxpayer had employer-provided insurance and no Marketplace coverage.

   • Or enter a custom explanation.

4. Resubmit the return.
   Note: Returns with an ACA explanation do not include Form 8962.

Important Notes

• The IRS added this reject in 2021 to prevent refund delays caused by missing Form 8962.

• This is one of the most common IRS rejects since 2021 across all tax software.

• Either a valid Form 8962 or a statement disputing the need for it must be attached before the return can be accepted.