Rejection Code F8962-070 - software not saving my "no" answer to 1095-A Q

[Magpie1481]

Hi!  My taxes keeping getting rejection code F8962-070.  I have insurance through my employer and so I clicked "no" to the question "Did you receive a 1095-A?"  But, when I save this info and move onto the next section of Turbo Tax, it automatically changed my answer to "yes" - and this means that my taxes keep getting the F8962-070 rejection error.  Called customer service, and they were useless - the guy said I could print out my taxes and mail it in.  Any fixes?  I can't seem to get the software to keep my answer as "no."  Software bug?

[AamilD]

The IRS is rejecting returns with this code because they believe you or someone on your return had insurance through the marketplace. If you had ACA in the past, you may still just be on their list.

You can try to enter $1 for the Form 1095-A.  This will not affect anything on your return, but having the form there may get the IRS to accept your return.  To do this take the following steps:

• Click Deductions and Credits
• Scroll down to Medical and Click Show More
• Click Start or Revisit next to the ACA
• As you walk through the questions, you will be asked if you received a 1095-A.  If you did NOT, click YES.
• Enter 0's for the Marketplace identifier and Policy number.
• Enter $1 for January monthly premium amount and SLCSP
• Walk through to the end and submit your return. 

[Magpie1481]

Thanks, but I don't want to say I received a 1095-A when I did not - that seems like a bad idea when dealing with the IRS.  I had employer health insurance last year as well, and I did not have this problem with Turbo Tax so it seems like a software issue?

[DawnC]

Have you deleted the Form 1095-A that was previously started?   Try deleting the Form 1095-A from your return first.   Then answer NO to the question and resubmit your return.   If it gets rejected again after you remove the 1095-A, that means someone in your family or on your tax return had marketplace insurance and received the Advance Premium Tax Credit.   Your return won't be able to be e-filed without Form 1095-A.    

Login to your healthcare.gov account (create an account if you need to), download Form 1095-A and re-efile your tax return.   If you confirm that there is not a Form 1095-A available at the ACA website, you have two choices:

1. File by Mail without the 1095-A.  
2. Use Aamil's suggestion above.  Adding the $1 will not affect your return, but it may prevent the rejection from occurring.   The IRS is much more concerned with a missing 1095-A than they are with a 1095-A with $1 on it.   And you want to avoid filing by mail if you can.   The IRS is behind and has double digit million returns backlogged.  

How to delete Form 1095-A.   After you do this, go back to the ACA questions (search for aca and use the Jump to aca link) and answer NO (you did not receive a 1095), then submit your return again.   

[Magpie1481]

So, I went back and said "yes" to the 1095-A and then I just added some fake data to that form.  I went back out and went to Tools and then deleted the 1095-A.  I resubmitted and was rejected...again (probably because the software automatically saved the "yes" answer even if I put in "no").  I have had employer health insurance for the last 2 years - I don't have an active ACA account, and I did not receive a 1095-A last year.  I only have 1 minor child who also does not have ACA.  There is no reason the IRS should have a 1095-A associated with me.  Thinking I will need to get a full refund from Turbo Tax and go elsewhere if they can't fix their software? 

[DawnC]

It rejected again because the IRS believes that you or your child had a Marketplace plan for at least part of 2021.   If you have confirmed that there is no 1095-A on file at www.healthcare.gov, then you are down to the 2 options from above.    

1. File by Mail without the 1095-A.  
2. Use Aamil's suggestion above.  Adding the $1 will not affect your return, but it may prevent the rejection from occurring.   The IRS is much more concerned with a missing 1095-A than they are with a 1095-A with $1 on it.   And you want to avoid filing by mail if you can.   The IRS is behind and has double digit million returns backlogged.  

To use Aamil's suggestion to file a mock 1095-A, so you can e-file,

• Enter 0's for the Marketplace identifier and Policy number
• Enter $1 for January monthly premium amount and SLCSP
• Submit your return for e-filing

You should verify that there is not a 1095-A available before e-filing without your 1095-A.    If there is a 1095-A available at the marketplace website and you file without it, your tax return will take several months to process.    If there really is not a Form 1095-A, including the mock 1095-A will not delay processing.