Filing 8962 after 1040 and other forms have been filed

[freddytax]

I didn't file an 8962 (I didn't check Market Place for healthcare) and the advice on the TT site is to wait to be notified by the IRS with form 12C.  I'd really hate to pay the interest penalty.  I did get my 1095-A, filled out the information and an 8962 was generated AFTER the IRS accepted my return.  Could I simply send in the 8962 along with what I owe?  That's the process once you are notified but can't I do it early?

[DawnC]

There won't be a penalty, you already filed your return.   You should wait for the notice as the notice will have instructions for submitting the documents.   However, if you know you owe, you can make a payment at the IRS website - See IRS Payments.  

The IRS has a document upload tool, but they will include a code you can use the tool to upload your documents with the notice.  IRS Document Upload Tool

[freddytax]

Thank you!  I do owe quite a bit for the Premium Tax Credit.  Should I simply pay that now or would that just confuse the IRS since I've paid all other taxes owed?  So for example, let's say I owed $40,000 (and paid it) on the 1040 that was filed and accepted but without the 8962.  Then I added the 8962 in TT and owed another $10,000.  If I make that $10,000 payment what will the IRS do with it since there is no 8962 and an updated page 2 of the 1040 that shows the additional $10,000 for  PTC?

[DawnC]

Wait till you get the notice; you can only pay a balance due on the website anyway.    If you wait until you receive the 12C letter, the letter will have a fax number or a code to use the document upload tool.   You know you owe the $$, so just be prepared to remit it whenever you receive the notice.   Since you have already filed and paid the balance due, you won't incur penalties.  

[freddytax]

Thanks, DawnC!  So my 8962 says that I owe an additional $18,000.  So I won't incur a penalty when it's time for me to a) upload the documents required by the 12C and b) remit the amount owed?

[RobertB4444]

Interest, yes.  penalties, no.  Although, to be fair, the IRS charges a remarkably reasonable interest rate.

I have advised people in the past to put the amount that you owe into a savings account.  You will earn more interest than you owe the IRS.  Then, when the IRS gets around to sending your letter, you pull the money owed out of savings and send it.

If you pay the amount due right now you run the risk of the IRS system deciding that you need a refund and mailing you a check.  Which you then need to negotiate and send back.  

@freddytax 

[freddytax]

Thanks, Robert!  I do have the $$ in a high yield savings account earning 4.1% so I guess I'd be paying the difference of the 7% the IRS charges minus what I'm earning?

[freddytax]

Ah, your last paragraph makes perfect sense and exactly what I was thinking!!!

Thank you!!

[RobertB4444]

Pretty much.  The hope is that it comes quickly and you just get to get it over with.

Even though the advice is to wait for the notice maybe you should amend the return.  That way the payment is in their system.  They may be confused but they can work that out for themselves while you're busy not incurring interest charges.  

@freddytax 

[freddytax]

Yeah, I blew it on this - actually had the healthcare selection correct and the return was rejected.  For some reason the second time around I changed the healthcare selection and the return was accepted.

Now when you say amend the return are saying upload the 8962 and page 2 of the 1040 and then pay the funds?  Or are you referring to filing a 1040X?  I was told that that could take months to process.

[RobertB4444]

The 1040X can sometimes take years to process.  But the payment would be processed immediately.  And once the payment is processed you can't be dinged for paying late.  They'll have the money even if it takes them a while to sort it all out.  And you won't need to worry because sorting it out is their business, not yours.

@freddytax 

[freddytax]

Thank you.  So then I'd make the payment and they simply hold onto  the funds?  And then at some point someone says "that money is for the 8962"?

[RobertB4444]

No.  They'll take the payment and then you'll click on this tool that says "where's my amended return".  And then it will tell you when it has been processed.  Once it has been processed you're done.  You've already paid and there isn't any more that you need to do.

@freddytax 

[freddytax]

Thanks, Robert!  So do they need the 8962?  Or do I upload that after I receive the RC2?  Thanks for your patience!

[RobertB4444]

The 8962 will be included with your return once you enter the information from the 1095-A form into your amended tax return.

Here's how to amend your 2024 tax return.

@freddytax