Form 8962 Rejection: Common Reasons and How to Avoid Them
Form 8962 is used to reconcile the Premium Tax Credit (PTC) for taxpayers who had Marketplace health insurance and received Advance Premium Tax Credit (APTC).
If your return is rejected due to Form 8962, it usually means there is a mismatch between your return and Marketplace records.
Most Common Reasons for Form 8962 Rejectionn
- Missing Form 8962: Marketplace records show Advance Premium Tax Credit was paid, but Form 8962 was not included with the return.
- Missing or Incorrect Form 1095-A Information: Amounts from Form 1095-A do not match IRS/Marketplace data.
This may include: Incorrect policy number, incorrect monthly premium amounts, incorrect SLCSP amounts (Column B) and SSN mismatch
- Using a Voided Form 1095-A: If the form has “VOID” checked, do not use it. Wait for a corrected 1095-A.
- Shared Policy Allocation Not Completed: If the policy was shared (such as divorced parents or dependents claimed by another taxpayer), allocation percentages must be entered correctly.
- Incorrect Household or Modified AGI Information:
Modified AGI must include:
- Tax-exempt interest
- Foreign earned income
- Income of dependents required to file
See Publication 974 for calculation guidance.
How to Avoid Rejection
- Use the final, non-voided Form 1095-A.
- Enter amounts exactly as shown.
- Ensure SSNs match IRS and SSA records.
- Complete shared policy allocation if required.
- Include Form 8962 if APTC was received.
For additional guidance, refer to IRS Publication 974 and Form 8962 instruction or visit IRS.gov and search for “premium tax credit.”
Source:
Publication 974
Form 8962