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Does anyone know how to resolve Error F8962-70? Customers have no insurance true Market Place.

Pikumadi
Level 2
I receive efiling message: Error F8962-070: The e-File database indicates that Form 8962 or a binary attachment with description containing "ACA
Explanation" must be present in the return.
This return rejected due to Form 8962 Premium Tax Credit missing from the return. In order to complete Form 8962, you
should have received Form 1095-A Health Insurance Marketplace Statement with relevant information on the insurance that
you purchased in the marketplace.
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44 Comments 44
garman22
Level 12
Level 12

Does your client have marketplace insurance? 

sheila confused
Level 1

no only state Medicaid

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sheila confused
Level 1

no only state medicaid

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Just-Lisa-Now-
Level 15
Level 15
they probably signed up for marketplace insurance and ended up with state Medicaid, they need to contact healthcare.gov and see what's on file for them.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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sjrcpa
Level 15

Several people have reported this. It sounds like a bogus (I mean unexplained behavior) IRS or Intuit reject.

IRS would have no way of knowing, on January 27 or 28, 2022, whether taxpayers were covered by an exchange. Those forms don't have to be issued until January 31, 2022; probably not sent to IRS until March 31, 2022; and then it would take more time to get in the database and for IRS to match.

Or else the input for health insurance is really crappy this year and many preparers are making errors.

garman22
Level 12
Level 12

@sjrcpa wrote:

Several people have reported this. It sounds like a bogus (I mean unexplained behavior) IRS or Intuit reject.

IRS would have no way of knowing, on January 27 or 28, 2022, whether taxpayers were covered by an exchange. Those forms don't have to be issued until January 31, 2022; probably not sent to IRS until March 31, 2022; and then it would take more time to get in the database and for IRS to match.

Or else the input for health insurance is really crappy this year and many preparers are making errors.


I hadnt considered that. Would you suggest waiting to refile it? 

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Just-Lisa-Now-
Level 15
Level 15

They are rejecting for missing 1095A/8962 forms, Ive seen multiple reports of 8962 rejections and sure enough, when the client called the marketplace they DID have a 1095A issued to them.

This is a much better plan than waiting for 3 months to send a letter than the 8962 is missing from the return.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Pikumadi
Level 2

As I mentioned in the introduction, my client received a Form 1095-B, not a 1095A, and was never insured by Market Place. I think as the predecessors wrote, I have to wait a few days, maybe ProSeries will fix this error.

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mm1128_
Level 1

I attached my 1095a and I am still getting the error.

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Just-Lisa-Now-
Level 15
Level 15

@mm1128_ wrote:

I attached my 1095a and I am still getting the error.


Did the 8962 get included?  Which tax software are you using?  Whats the full rejection message?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Pikumadi
Level 2
 

I am using ProSeries software. I emphasize that the customer has Form 1095-B NOT 1095-A

Error Detail:
The e-File database indicates that Form 8962 or a binary attachment with description
containing "ACA Explanation" must be present in the return.
Error Resolution:
This return rejected due to Form 8962 Premium Tax Credit missing from the return. In
order to complete Form 8962, you should have received Form 1095-A Health Insurance
Marketplace Statement with relevant information on the insurance that you purchased in
the marketplace.
The ACA Marketplace providers have until 1/31/22 provide the 1095-A to taxpayers.
For more information visit https://www.irs.gov/affordable-care-act/individuals-andfamilies/health-insurance-marketplace-stateme....

 

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Just-Lisa-Now-
Level 15
Level 15

@Pikumadi   Your client needs to contact healthcare.gov and see what theyve got attached to their SSN or another SSN on their return.

I realize they have a 1095B, but that doesnt mean they didnt sign up with marketplace insurance at one point (happens often) and never officially cancelled it.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
garman22
Level 12
Level 12

Im with Lisa here. Several times clients were like "OH, thats right, I had for one month" or "I signed up by mistake". Well......thats enough to generate a 1095-A. 

IF at the end of the day there is NO 1095-A, you may be required to file paper but I am not 100%. I have yet to come across someone whose tax return was kicked back and did NOT have a 1095-A. 

 

 

Sarah8833
Level 1

Well I am one then. I VERIFIED with marketplace that I do not have any insurance with them and they do not HAVE a 1095-A form for me. They sent me a letter stating this and I am still getting the same rejection. Any ideas? I am getting this F8962-070 - The e-File database indicates that Form 8962 or a binary attachment with description containing "ACA Explanation" must be present in the return. 

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Sarah8833
Level 1

I uploaded the document to turbo tax but it’s like it is not registering 

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Just-Lisa-Now-
Level 15
Level 15

This isnt TurboTax.

I think you may be in the wrong place...this forum is for tax professionals using Intuit's professional tax software, it appears you may be looking for DIY help.

Please visit the TurboTax Help site for DIY support, they may be able to help you.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Pikumadi
Level 2

Congratulations, your perception was accurate. the client applied for insurance in the market place but he withdrew, so he never bought it because the employer provided him with insurance. Of course, the client received a zero Form 1095-A but he did not give it to me because he thought it was unnecessary. It confused me that for Form 1095-B, the insurance from the employer was 12 months.

GLIgal
Level 2

Has anyone tried to add a 'ACA Explanation' to the tax return and then had return Accepted?  I've attached the explanation and still receive a Rejection.

Pikumadi
Level 2

There is no Marketplace Insurance but he applied for it. Probably before 01/01/2021, he resigned but the file remained, He need to get a Form 1099-A with zeros, but that keeps you from going through the IRS

Just-Lisa-Now-
Level 15
Level 15

@GLIgal  you have entered the 1095A and it generated an 8962 and are still getting rejected?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Pikumadi
Level 2

I don't think he added Form 1095-A, he just skipped it because the client didn't give it because he said he didn't have Market Place Insurance. Let's wait, he will write more about it.

Just-Lisa-Now-
Level 15
Level 15
He wont get it accepted without it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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GLIgal
Level 2

My client did not get a 1095A because she did not have marketplace insurance.  She had Medicaid from the State of IL all year until a new job offered insurance.  The error I got (same as those expressed above) says one option to resolution is to add a statement to the return of explanation.  I did that and return was still rejected.  I'm a bit at a loss except to paper file.  I hate paper filing.

Just-Lisa-Now-
Level 15
Level 15
She may have signed up at one point and didnt even realize it (some people though they were just getting a quote and ended up with an account), she needs to reach out to healthcare.gov and see what they have for her SSN.

Without it, you'll be forced to paper file then her return will end up in the error department while they send her a letter in 3 months asking for the form.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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GLIgal
Level 2

Well...she's called healthcare.gov and they show nothing under her SS# for 2021.  Am having her call back to inquire if they have anything under her childrens' SS# because dad, filing separately, is responsible for health coverage.  Seems strange their SS#'s would trigger this issue but we're just not sure what else to do.  Anyone else having this issue?  

multiburnz
Level 2

I am having this same issue.  Can't e-file.  Never signed up for healthcare through any marketplace anywhere as I have had healthcare from my employer for over 11 years now.  I hate the IRS.  Total crap that will now delay my return for months because of their screw up.  I will be calling Healthcare.gov to have them check, but as I said, unless it's fraud, I know for a fact I never signed up for anything.

GLIgal
Level 2

Upon pressing healthcare.gov, my client learned her ex-husband's court-ordered healthcare coverage of her children are what is probably giving us the error.  We are expected to get the 1095-A from him!  Ridiculous.  Good luck to you!

Steplamb
Level 1

I keep getting the same message and rejection code but I did not have ACA insurance and how to fix this

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Just-Lisa-Now-
Level 15
Level 15
Call healthcare.gov and see what they have on file for your SSN or any SSN thats included on your tax return (like dependents).

A 1095A was sent to IRS and it has your SSN or one of the SSNs on your return shown on it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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multiburnz
Level 2

I actually did call them, and they said they had nothing on file for either myself or my daughter.  Seems like a TurboTax glitch to me.  Certainly could be an error on the IRS side of things too.  Either way it's a huge hassle. 

I would be curious to know if anyone that filled out the form with zero's or $1 for January and got the electronic filing to go through, have any of you received your refunds yet?  I am concerned that might get the filing to go through, but could still delay the refund.

 

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Just-Lisa-Now-
Level 15
Level 15

@multiburnz   I think you may be in the wrong place...this forum is for tax professionals using Intuit's professional tax software, it appears you may be looking for DIY help.

Please visit the TurboTax Help site for DIY support, they may be able to help you.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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multiburnz
Level 2

Thanks Lisa.  I am not a tax professional.  Just googling anything and everything I can find on the issue and came across this forum in my travels.  Seems to be the same issue at the end of the day, but happy to move along and continue to look for answers elsewhere.

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Setphael
Level 1

I am also having this issue with a client. I am working in Lacerte. They did receive a 1095-A. They had no advance payment of premiums because they did not qualify. I have tried inputting the info from the form and excluding  it but the IRS rejects it because they are expecting a Form 8962 but Lacerte is no generating it because there is not advance payment of PTC.

kulangy26
Level 1

Thanks this actually help I spend hours and hours talking to customer representative from PTO and they weren't able to help me and the return kept on getting rejected until finally I told the client to call healthcare.com and turns out like you said that they had another 1095 a form. I'm glad I found this solution.

House
Level 3

I am just now noticing this on several returns.  One common thread I have noticed is all the ones rejected for it were once dependents of their parents in the prior year.  In 2021, they are filing on their own for the first time.  Not sure if this has anything to do with it.  I am following up with them to see if they have 1095-A forms issued.  ProSeries will not let you input a 1095-A with zeroes on it.

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Just-Lisa-Now-
Level 15
Level 15
Even if they are filing on their own, if theyre still on the parents marketplace policy, they need that 1095A included on their return.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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House
Level 3

I think I found a way to make it work.  In my situation I had two different tax payers both of which are no longer dependents on their parent's returns, but are still covered under their parent's marketplace insurance.  If a filer is on a marketplace for a parent or someone else who is not on their return, you still have to put the 1095-A on the filers return.  Then fill in the allocation section with the percentages set at 0.  Then mark the box on the info page that says the filer cannot be claimed on another person's return.  This activates the Form 8962.  I have now done this on two returns and it worked for both.  Efile was accepted.  Hope this helps.

House
Level 3

I think I found a way to make it work.  In my situation I had two different tax payers both of which are no longer dependents on their parent's returns, but are still covered under their parent's marketplace insurance.  If a filer is on a marketplace for a parent or someone else who is not on their return, you still have to put the 1095-A on the filers return.  Then fill in the allocation section with the percentages set at 0.  Then mark the box on the info page that says the filer cannot be claimed on another person's return.  This activates the Form 8962.  I have now done this on two returns and it worked for both.  Efile was accepted.  Hope this helps.

e_d
Level 1

Thank you, thank you, it worked for me also.

Terry53029
Level 12
Level 12

If your clients are sure they have no marketplace insurance just fill out a dummy 1095A with $1 in columns a, b, c, and a zero in box 1, and 2. This will give the irs what they are looking for. I did 2 returns in February like this after getting rejected, and resubmitted. Both accepted and one of the clients has his refund. Haven't heard from other one

Fanbrother
Level 1

I am working on Turbotax to do mine and my husband's taxes.  Last year, we were shopping for insurance to see what was out there to maybe switch coverages. My husband contacted a broker who started up an account on the Marketplace for us without our knowledge.  We decided to go a different direction, and fast forward to today; I'm trying to send my taxes in and get the rejected message you all are speaking about.  We never got a 1095-A, and I'm now panicking since it's Easter weekend and our taxes are due on Monday.  I tried calling our state system, and they are closed. Any suggestions on how I can proceed?  I'm familiar with TurboTax as I've used it several times; however, I'm more of a novice, so please dumb any answers down for me, please. 

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House
Level 3

I think I found a way to make it work.  In my situation I had two different tax payers both of which are no longer dependents on their parent's returns, but are still covered under their parent's marketplace insurance.  If a filer is on a marketplace for a parent or someone else who is not on their return, you still have to put the 1095-A on the filers return.  Then fill in the allocation section with the percentages set at 0.  Then mark the box on the info page that says the filer cannot be claimed on another person's return.  This activates the Form 8962.  I have now done this on two returns and it worked for both.  Efile was accepted.  Hope this helps.

 

Worst case, efile a Form 4868 for extension to give you time to figure it out.  Forms not due til Monday.

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House
Level 3

Even though you never received a form, it sounds like one may be generated somehow.  May need to contact agent who originally set it up.

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sheila confused
Level 1

i didnt receive ACA Market Place so now what should i do all i got for the year 2021 was Medicaid for me and my son who is seventeen

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