Generating 8962 and Submitting Electronically

[freddytax]

My return was at first rejected because I did not include form 8962 and did not check the box in TurboTax that I did not receive a 1095-A.  I then went back into the tool and checked the box that I DID NOT receive a 1095-A (true) but mistakenly checked that I did not receive healthcare through the Market Place (I did receive).  

There is a mistake here, how do I fix it?  Do I send in an 8962 by hand?  An amended 1040?  Any help is greatly appreciated.

[MaryK4]

Because your return was rejected, you can go back to the return and add the 1095-A which will produce the 8962 then you can e-file.  See Where do I enter my 1095-A? - TurboTax Support - Intuit

[freddytax]

Unfortunately, I goofed and said that I did not receive ACA so the second time around the return was accepted.  I need to fix the fact that I do need to submit an 8962.  Can I simply do this by hand?

[freddytax]

Ok, I was able to download the 1095-A, fill out the info in TT and an 8962 was generated with a new tax owed amount.  Since my 1040 was accepted because I made the mistake of saying that I did NOT receive healthcare through the Market Place do I need to submit an amended 1040 (is this a 1040X?) and can TT help me do that online or is does this need to be physical paper through the mail?

[freddytax]

On the original return I owed ~$51,000 and incorrectly did not submit a 8962.  I went back into TT, said that I did indeed receive a 1095-A, filled out TT and an 8962 was generated and elicited an additional ~$19,000 for Excess advance PTC repayment.  I have not paid the IRS the total amount of $51,000 + $19,000 = $70,000.  Could I simply pay them the full $70,000 and include a physical 8962 or do I need to submit an amended 1040X?  Any help is greatly appreciated.

[JotikaT2]

Please see the last section titled what if I filed my taxes without Form 8962 for steps to take since your return has already been filed and accepted. You should receive a 12C letter from the IRS that will request the missing form and any additional corrected forms.

[freddytax]

Thank you!!  But the problem I see is that I mistakenly (don't ask why) for the second 1040 submittal said that I did not receive healthcare through the Market Place when I actually did and the return was accepted.  This was an honest mistake but how do I fix that?

And do they charge me interest on the $19,000 that I owe for credit repayment?  If so, I hope it'd be a wash between what I earn in my HYSA (4.1%) vs. what the IRS will charge me.

[freddytax]

Maybe regardless of what I said in TT the IRS will still ask for the 8962 and the payment since they have a copy of the 1095-A and that tells them that I indeed received healthcare through the Market Place?

[JotikaT2]

You can only electronically file your original 1040 form once.  Was your first attempt at electronically filing rejected?  If so, then only your second return was submitted.  Check your e-file status to confirm which return was filed and accepted.

Since you know your tax liability amount would be higher if you had included Form 8962, you can always reach out to the IRS directly for guidance on how to send in your Form 8962 and revised 1040 form since you have not yet received a 12C letter. 

Understanding your Letter 12C

Contact your local IRS office

[freddytax]

Yeah, I made a mistake saying that I did not go through the Market Place after the first rejection so it was accepted without the 8926.  Looks I need to call the IRS for guidance as you suggested.

[BillM223]

I am surprised that your second attempt at filing was not also rejected, since the IRS knows that you should have attached form 8962. 

Yes, they will charge you interest on what you should have paid by April 15th.

In the meantime, create your amended tax return (1040X), and e-file it. This time, before you hit Send or File or whatever, take a deep breath and ask yourself, "Is this return correct?".

Although there is no deadline on this, you are motivated to do this sooner than later, because the 1040X and the payment with it will stop any further interest being charged.

[freddytax]

Bill, the TT web site told me to wait for the IRS to contact me about the 8962 needing to be included and another Community tax pro told me to NOT file the 1040X.  Right now I'm paying what I owe minus the 8962 that is requiring me to repay the Premium Tax Credit.  Will filing a 1040X head this off at the pass and can I do it on TT?

The TT web site guidance says:

If you filed your taxes without Form 8962, but need to include it, don’t amend your return. Wait until the IRS sends you a notice requesting the form.

If you received a notice from the IRS requesting Form 8962, you’ll have to add a Form 1095-A to your return in TurboTax, print Form 8962, and mail it to the IRS. For more info on this process, go here.

What does the IRS charge for interest?  I have the money in a HYSA paying 4.1% so I'm hoping whatever interest I owe is a wash!!

[BillM223]

The interest rate appears to be 7% at the moment. See the table at this IRS webpage.

Yes, you can file the 1040X on TurboTax, but, no, the processing of the 1040X will not likely be quick enough to cut off the interest (paperfiled 1040Xs take months to process, e-filed 1040X are so recent for us that I don't have a feel for how fast the IRS can handle them).

What you might do is this:

got to https://www.irs.gov/payments

then when you work your way down, say that this is a payment for 

Balance Due, 

Income Tax - Form 1040,

2024

Then pay the extra amount that you would have done had you filed correctly the first time.

Then when you do your 1040X, make sure that this payment is included in the 1040X, or the 1040X will try to charge it again.

[freddytax]

Thank you.  So to summarize I can:  Submit a 1040X via TT (is that easy to find) that contains the 8962 (I have generated this with the 1095-A info) along with the PTC that I owe.  Sound right?  That would save me a tremendous amount of trouble.

[freddytax]

I'm in the TT software and I have no idea how to file a 1040X.  What I've read is that the 1040X will be generated with the $$ difference from what I filed and was accepted by the IRS?  Is there some hidden tab that I don't know about?  When I login to the TT web site it only wants to walk me through filling out a new return.  Any help is greatly appreciated.

Thank you