Taxpayers must file an income tax return and include Form 8962, Premium Tax Credit (PTC), if they, their spouse, or anybody they claim as a dependent enrolled in health insurance through a Health Insurance Marketplace (“Marketplace”) and received financial assistance to help cover the cost of their insurance (typically called advance payments of the premium tax credit, or APTC).
On Form 8962, taxpayers reconcile the difference between the amount of the APTC made on the taxpayer’s behalf (or on behalf of a member of the taxpayer’s family) and the actual premium tax credit (PTC) the taxpayer may claim on the return. These amounts may differ because the Marketplace determined the amount of APTC based on the taxpayer’s projected income while the PTC is determined based on the taxpayer’s actual income.
Taxpayers must reconcile APTC on Form 8962 even if they (or a member of their family) had Marketplace coverage for less than an entire year or if they terminated coverage at the end of the calendar year. Marketplaces send a Form 1095-A, Health Insurance Marketplace Statement , Health Insurance Marketplace Statement, by January 31 of the year following coverage to provide important information about the coverage provided and any APTC that was paid.
Electronically filed tax returns will be rejected (IRS business rule F8962 070) if IRS records show that the taxpayer is required to reconcile APTC on Form 8962 but does not include the form with the tax return. A taxpayer whose electronically filed return is rejected because Form 8962 is not included should review their health insurance records, including Form 1095-A.
Taxpayers whose returns are rejected must refile their returns by completing and including Form 8962 or providing 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, saves time and prevents a simple mistake from holding up any refund the taxpayer may be owed.
Taxpayers who are required to reconcile APTC and who file on paper but do not include Form 8962 will generally receive letters from the IRS. Because business rule F8962-070 only applies to electronically filed returns, these paper-filed returns will be accepted and the IRS will generally follow up by mail. The IRS may also send a letter to taxpayers when more information is needed concerning the explanation the taxpayer provided for the missing Form 8962.
FAQs on correcting an electronically filed return rejected for a missing Form 8962
Q1. Why was my electronic return rejected? (updated Nov. 8, 2024)
A1. Your electronic return was rejected because IRS records show that APTC was paid to your Marketplace health insurance company on behalf of you or another member of your family, and you are required to complete Form 8962 and include it with 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 include it with your return.
Q2. What is the Health Insurance Marketplace? (added Nov. 8, 2024)
A.2 The Health Insurance Marketplace, also simply called the Marketplace, is the place where you find information about private health insurance options, purchase health insurance, and obtain help with premiums and out-of-pocket costs if you are eligible. The Marketplace is either a Federally-facilitated Marketplace a State-based Marketplace. Each State-Based Marketplace has its own website and name. For example, California’s Marketplace is called Covered California. You can find your State-Based Marketplace by clicking on your state at.
Q3. How do I know if I was enrolled in Marketplace health insurance with APTC? (updated Nov. 8, 2024)
A3. You or the person who enrolled a family member in Marketplace health insurance should have received Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace. The Form 1095-A shows the months of coverage and any APTC paid to the health insurance company for the coverage.
Q4. What if I was enrolled in Marketplace health insurance but did not receive a Form 1095-A? (updated Nov. 8, 2024)
A4. 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 can get an electronic copy of Form 1095-A from your State-based Marketplace account. Visit the website of your State-based Marketplace to find out the steps you need to follow to get a copy of your Form 1095-A online. To find the website, click on your state or contact the Federally-facilitated Marketplace Call Center.
Q5. What if any of the information on my Form 1095-A is incorrect? (updated Nov. 8, 2024)
A5. 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. You can find information about your Marketplace Call Center on your State-based Marketplace website by clicking on your state. However, if you had a change in circumstances that you did not report to the Marketplace and you believe the premium reported in Part III of the Form 1095-A is incorrect, then you will need to determine the correct applicable premium. See Publication 974, Premium Tax Credit (PTC) for information on determining the correct applicable premium or, if you enrolled through the Federally-facilitated Marketplace, go to HealthCare.gov/tax-tool.
Q6. What if I think I am not required to file Form 8962? (updated Nov. 8, 2024)
A6. If you think you are not required to complete Form 8962 and include it with your return, you should contact your Marketplace to confirm that APTC was not paid to your health insurance company for you or any member of your family. After confirming that APTC was not paid for you or any member of your family, you should include with 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 include a PDF attachment with your return.