My federal refund was rejected due to your system error on form 8962. Line 5 should have a value of 133 for those who have received unemployment. When will it get fixed?

[user5655]

IRS 8962 form instruction state the following:
Line 5
Figure your household income as a percentage of the federal
poverty line using Worksheet 2.
If you, or your spouse (if filing a joint return), received, or were
approved to receive, unemployment compensation for any week
beginning during 2021, enter 133 on line 5. For all others,
complete Worksheet 2 below.
Worksheet 2. Household Income as a Percentage
of the Federal Poverty Line
1. Enter the amount from line 3 of Form
8962 ....................... 1.
2. Enter the amount from line 4 of Form
8962 ....................... 2.
3. Divide the amount on line 1 above by the
amount on line 2 above. Do not round

[TeresaM]

If you received error message F8962-006-01 this a code from the IRS to explain the rejection. It does refer to Form 8962, which reconciles the Advanced Premium Tax Credit from your Form 1095-A. 

Our information for this code is "This return cannot be electronically filed at this time due to a processing error that will be corrected on February 3, 2022. On, or after February 3, 2022, open the rejected return, review it for errors, and resubmit the return for electronic filing."

The IRS just began accepting e-filed returns on Jan 24th and this early in the season it is not uncommon for there to be updates.  Please review the 1095-A area in your return, after February 3rd, when the updates should be in place. Then, refile and it should be accepted.

If you have a different reject code, please let us know as this will help in determining the reason.

[user5655]

It does not seem to be an IRS issue. It looks more like a systematic issue on TurboTax end and I will explain to you why I think that way.

After receiving the email saying my tax was rejected. I went into your website and clicked “fix my return”

Then on the next page Federal return rejection. Reject code F8962-006-01 I clicked Revisit

Then this message pops up:

If form 8962, line 1 has a non zero value, then line 5 must be equal to line 3 divided by line 4. And then right bellow says:

This return cannot be electronically filed at this time due to a processing error that will be corrected on Feb 3 2022. On or after Feb. 3rd. Open the rejected return, review it for errors, and resubmit for electronic file. 

You were right on this part.

So I decided to investigate and noticed the following: my form had the value in line 5 corresponding to line 3 divided by line 4 multiplied by 100

But when reading the IRS form 8962 instruction page 8 it clearly says:

If you, or your spouse (if filing a joint return), received, or were
approved to receive, unemployment compensation for any week
beginning during 2021, enter 133 on line 5. For all others,
complete Worksheet 2 below

Your system used the result from worksheet 2 instead of entering the value of 133 even though I have checked marked that I did receive unemployment compensation  and I am filling a joint return.

So I strongly believe that the glitch on your system caused the rejection and delay on my return.

I want to make sure that the problem is fixed because I can't have my taxes delayed again so can you please confirm that this will be fixed?

[Cynthiad66]

When a reject notice is received from the IRS with the description of the issue then it is an IRS issue.  In this case, IRS has not released the final version of the form and TurboTax has to wait to receive this form to update it's tax software.  TurboTax does not create forms.  IRS and all of the states are responsible for creating the forms to accommodate the various tax laws then TurboTax can use that information to update it's programs to affect the proposed changes in the forms.  Remember, IRS processes tax returns and isse refunds.  TurboTax forwards information to the IRS for processing.

Per TeresaM

Our information for this code is "This return cannot be electronically filed at this time due to a processing error that will be corrected on February 3, 2022. On, or after February 3, 2022, open the rejected return, review it for errors, and resubmit the return for electronic filing."

[Edited: 2/3/2022 10:30 AM  PST]

[user5655]

I understand that turbo tax does not create form. But as per my understanding TurboTax fill out the forms based on your customers answers. Am I wrong?  Again, if you read thru my statement again you will note that the issues is with the wrong value entered by your system rather than a needing to be a different form. Again, the value on line 5 should be 133 according to the form instruction for those who have received unemployment compensation but instead your system is generating the value as if I have not received unemployment compensation and following the worksheet 2 of the form instruction. 
I am just trying to make sure that this will be corrected by tomorrow 02/03/22 as you state.

Can you please confirm?

[DawnC]

Yes, taxpayers answer the question and TurboTax uses those answers to fill out the forms.   But TurboTax does not create the forms.   The IRS creates the forms AND instruction requirements for those forms.   TurboTax creates a version of the form to use in its software, but the IRS has to finalize all forms before they can be used in e-filing.   

As of right now, the issue is schedule to be remedied tomorrow (02/03).   Availability dates are always tentative.   No one can confirm that this issue will be gone tomorrow, but it is scheduled to be corrected then.   Tax refund delays mostly occur because of filing too early.    The earlier you file, the more likely you are to experience a delay.   If you want to avoid delays with your tax return being processed, wait until later in February or March to file.   Your chances of your refund being delayed drops considerably the longer you wait.    Of course, don't wait until the deadline, but for the record, early filers experience the most delays.   

[user5655]

Again, the value entered on the form by TurboTax after I’ve answered the questions is wrong as opposed to the form itself having to be updated. I hope someone can understand and remedy. 
I did assume that the sooner you file the quicker you should receive your refund. I guess I’m wrong…

[user5655]

What frustrated me the most in this process is the fact that non of you so called experts were able to address this concern properly. All you did was rebate me with excuses to the flaw on your system trying to blame the issue on the IRS. Also, the fact that you encourage your customer to file their tax return later rather than sooner claiming that refunds are likely to get delayed if filed sooner makes no sense whatsoever. Fortunately for me I was able to find sources outside of TurboTax that would assist me in finding the correct answers. Indeed, everything that I have stated on my initial thread was correct. It is confirmed now that my tax refund was delayed due to your system flaw by incorrectly entering the wrong value on form 8962 when I first filled my tax return and I have proof of that. 

So, the purpose of me writing again to this community is because I want to create awareness to the members of this community. Also, I hope that moving forward TurboTax will find better ways to respond to situations like this more efficiently.