How to correct an electronically filed return rejected for a missing Form 8962

Electronically filed tax returns will be rejected if the taxpayer is required to reconcile advance payments of the premium tax credit (APTC) on Form 8962, Premium Tax Credit (PTC), but does not attach the form to the tax return. When the IRS rejects the return through the software the taxpayer is using, the taxpayer will see a brief explanation about what to do to fix and correctly file the return electronically. This saves time and prevents a simple mistake from holding up any refund that the taxpayer may be owed.

In response to the rejection of an electronically filed return that's missing the Form 8962, taxpayers may refile a complete return by completing and attaching Form 8962 or a written explanation of the reasons for its absence. Immediately resolving the missing Form 8962 issue at the time of filing avoids any processing delays that result when the IRS needs to correspond with the taxpayer regarding the missing form.

Previously, the IRS did not reject electronically filed returns from taxpayers who failed to reconcile their APTC by attaching Form 8962 to their return. Instead, the IRS would later correspond with the taxpayer to request the missing Form 8962 or an explanation for its absence, which delayed the processing of the return.

The IRS will continue to correspond with taxpayers who file a paper return without attaching the required Form 8962. That practice remains unchanged. The IRS may also correspond with taxpayers when more information is needed concerning the explanation for the missing Form 8962.

Taxpayers whose electronically filed return is rejected because the Form 8962 is not attached should review their health insurance records, including Form 1095-A, Health Insurance Marketplace Statement. Taxpayers who were covered by Marketplace health insurance, including those who had Marketplace insurance for less than an entire calendar year and those who terminated coverage at the end of a calendar year, still have to reconcile their APTC on Form 8962.

FAQs on correcting an electronically filed return rejected for a missing Form 8962

Q1. Why was my electronic return rejected? (added Feb. 23, 2024)

A1. Your electronic return was rejected because IRS records show that APTC was paid to your Marketplace health insurance company on behalf of a member of your family, and you are required to complete Form 8962 and attach it to your return to reconcile the APTC with the PTC you are allowed. For purposes of the PTC, your "family" consists of yourself, your spouse if filing jointly, and all other individuals whom you claim as dependents on your return. If someone else enrolled a member of your family in Marketplace health insurance with APTC and you claim the family member on your tax return, you are required to complete Form 8962 and attach it to your return. If another taxpayer has agreed that they will reconcile on their return all or a portion of the APTC paid on behalf of a member of your family, complete Part IV of Form 8962 and attach it to your return.

Q2. How do I know if I was enrolled in Marketplace health insurance with APTC? (added Feb. 23, 2024)

A2. You or the person who enrolled a family member in Marketplace health insurance should have received Form 1095-A, Health Insurance Marketplace Statement, from your Marketplace. The Form 1095-A shows the months of coverage and any APTC paid to your Marketplace health insurance company for the coverage.

Q3. What if I was enrolled in Marketplace health insurance but did not receive a Form 1095-A? (added Feb. 23, 2024)

A3. If you purchased insurance through the Federally-facilitated Marketplace and you set-up a HealthCare.gov account, you can get a copy of Form 1095-A online from your account. If you purchased insurance through a State-based Marketplace, you may be able to get an electronic copy of Form 1095-A from your State-based Marketplace account. Visit your Marketplace’s website to find out the steps you need to follow to get a copy of your Form 1095-A online.

Q4. What if my Form 1095-A is incorrect? (added Feb. 23, 2024)

A4. If you purchased insurance through the Federally-facilitated Marketplace , and you think the information on your Form 1095-A is incorrect, or if you think you should not have received a Form 1095-A because you were not enrolled in Marketplace health insurance, you should contact the Federally-facilitated Marketplace Call Center. If you purchased insurance through a State-based Marketplace, please contact your Marketplace Call Center, which information you can find on your State-based Marketplace website.

Q5. What if I think I am not required to file Form 8962? (added Feb. 23, 2024)

A5. If you think you are not required to complete Form 8962 and attach it to your return, you should confirm that APTC was not paid to your Marketplace health insurance company for any member of your family. To confirm that APTC was not paid, you should attach to your return a pdf attachment titled "ACA Explanation" with a written explanation of the reason why you believe Form 8962 should not be required. You may also upload any copies of a corrected or voided Form 1095-A from the Marketplace or any notice issued by the Marketplace indicating proof of no enrollment. You should follow the instructions provided by your software company on how to attach a pdf attachment to your return.