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

Starting with tax year 2021, 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 we reject the return through the software you are using, you will see a paragraph that explains what you can do to fix and correctly file your return electronically. This saves time and prevents a simple mistake from holding up any refund that you may be owed.

In response to the rejection of an electronically filed return that's missing the Form 8962, individuals 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.

In prior years, 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.

If an electronically filed return is rejected if the Form 8962 is not attached, we encourage taxpayers to review their health insurance records, including Form 1095-A, Health Insurance Marketplace Statement. Taxpayers who were covered by Marketplace health insurance during 2021, including those who had Marketplace coverage for less than the entire 2021 calendar year and those who terminated coverage at the end of 2021, still have to reconcile their APTC on Form 8962.

Correcting an electronically filed return for a missing Form 8962 – and why it was rejected

• Your electronic return was rejected because IRS records show that advance payments of the premium tax credit (APTC) were paid to your Marketplace health insurance company on behalf of a member of your family in 2021, and you are required to complete Form 8962 and attach it to your return to reconcile the APTC with the premium tax credit (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 coverage 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.
   
• You or the person who enrolled a family member in Marketplace health insurance coverage for 2021 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 Marketplace health insurance company for the coverage. If you think the information on the Form 1095-A is incorrect or you did not receive a Form 1095-A, you should contact your Marketplace.
   
• If you do not believe you should be required to complete Form 8962 and attach it to your return, please confirm that APTC was not paid to your Marketplace health insurance company for any member of your family in 2021. To confirm the 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.