How do I correct Reject: Error F8962-070?

[PPECPA]

I received the following error.  Reject: Error F8962-070 and was unable to resolve.  Can anyone help and advise where I input the explanation for this error?

Any help would be greatly appreciated

[TaxGuyBill]

In most cases, the taxpayer had Marketplace insurance.  They need to check the Marketplace for a 1095-A.  Or if anybody may have signed them up for insurance (such as a parent for an older 'kid'), ask that person (usually a parent) for a copy of the 1095-A.

[PPECPA]

Thanks for the help TaxGuyBill

[qbteachmt]

On the opening page of this Lacerte community forum, on the right, is Find My Diagnostic Center:

https://proconnect.intuit.com/community/lacerte-tax/discussion/03/302

That takes you here:

https://proconnect.intuit.com/community/tkb/choosetemplatepage/board-id/diagnostics/search-before-po...

Bookmark that. Put in your error code to see if it is explained, what it is, solution, etc.

[PPECPA]

Thanks for all the help!  Funny thing, I updated my Lacerte and poof, the error went away.

Huh...go figure, thanks 

[PPECPA]

Well I'm back and so is the error message.  So here's where I'm at.  Client was employed for part of the year and unemployed for the other part.  Client provided Form 1095-A's for three months he and his wife were covered under the Health Insurance Marketplace (Feb, Mar, April).  I've entered this information in window 39.2.  Entered in MFJ, Marketplace identifier, marketplace-assigned policy number and covered individuals for Feb-Mar and coverage information (enrollment premiums, SLCSP premiums and premium tax credit).

Client also provided a Form 1095-C which reported coverage from May thru Dec (Line 16 Section 4890H Safe Harbor and Other Relief - enter code, if applicable).  Code 2C is entered for the months of May-Dec (Code 2C reports Employee enrolled in health coverage offered).  I entered this information in window 39.3 Under Covered Individuals, I inputted the modified AGI for the tax payer (not spouse) and entered in a "1" for all months covered (May through December).

Lastly, in the Coverage Exemptions for Individual Claimed on Returns (Form 3853, Part III) I entered in taxpayer and spouse's information and in the exemption type I entered in code "C-short coverage gap" as the client was only with out insurance for one month of the year.   

After all of this

In lacerte 

[PPECPA]

Well I'm back and so is the error message.  So here's where I'm at.  Client was employed for part of the year and unemployed for the other part.  Client provided Form 1095-A's for three months he and his wife were covered under the Health Insurance Marketplace (Feb, Mar, April).  I've entered this information in window 39.2.  Entered in MFJ, Marketplace identifier, marketplace-assigned policy number and covered individuals for Feb-Mar and coverage information (enrollment premiums, SLCSP premiums and premium tax credit).

Client also provided a Form 1095-C which reported coverage from May thru Dec (Line 16 Section 4890H Safe Harbor and Other Relief - enter code, if applicable).  Code 2C is entered for the months of May-Dec (Code 2C reports Employee enrolled in health coverage offered).  I entered this information in window 39.3 Under Covered Individuals, I inputted the modified AGI for the tax payer (not spouse) and entered in a "1" for all months covered (May through December).

Lastly, in the Coverage Exemptions for Individual Claimed on Returns (Form 3853, Part III) I entered in taxpayer and spouse's information and in the exemption type I entered in code "C-short coverage gap" as the client was only with out insurance for one month of the year.   

After all of this I am still receiving the FEDERAL Filing Rejected message Reject Error F8962-070:  The e-File database indicates that Form 8962 or a binary attachment with description containing "ACA Explanation" must be present in the filing.  

I really need some help here.  Can anyone assist?

PPE

[TaxGuyBill]

---

@PPECPA wrote:

I've entered this information in window 39.2.  Entered in MFJ, Marketplace identifier, marketplace-assigned policy number and covered individuals for Feb-Mar and coverage information (enrollment premiums, SLCSP premiums and premium tax credit).

---

That is really weird.  Just to confirm, you are saying they did receive Advance Credit (column C of the 1095-A), right?

It appears the software is not actually including the 8962.  Unless there was no Advance Credit (and they don't qualify for a current credit), I'm not sure why it would do that.

I'm a ProSeries user, so I can't guide you specifically for Lacerte, but can you look through any diagnostics to see if there is an error that the program is not filing the 8962?

If there was NOT any Advance Credit AND they don't qualify for any current credit, then a work-around would be to attach the PDF of the 8962 to the return, and attach it by calling it "ACA Explanation".  But don't do that if there was Advance credit or if there is any current credit.

[PPECPA]

Hey TaxGuyBill

I'm still struggling with this.  I'm trying to attach a pdf of the form 1095-C to the form 8962 and labeling it "ACA Explanation" but  when I go into screen 4.4 Electronic Return File Attachments, I do not see where I can attach this to the Form 8962.  

Form 8962 is not listed in the drop down menu for the "Link to form (defaults to main form)"

If you're direction is to add the Form 8962 as an attachment and label it "ACA Explanation" then I'm a bit confused as the form is already included in the return.

Sorry TaxGuyBill, I may need further clarification.

PPE

[TaxGuyBill]

There is no need to attach the 1095-C for Federal.

That IRS rejection code says that the 8962 is NOT part of the tax return.  So for some reason, your software seems to not be including it.  That is why I asked if there was any Advance credit or if there was any credit at all.  Or if you are allocating 0% to the taxpayer.

So does the 8962 actually show anything on lines 24-29?

[PPECPA]

Hey TaxGuyBill

Yessir,

Line 24 Total Premium tax credit shows a positive amount

Line 25 Advance payment of PTC shows a positive amount

Line 26 is blank

Line 27 Excess Advance payment of PTC. If line 25 is greater than line 24 enter difference (shows a positive amount)

Line 28 Repayment limitation is blank

Line 29 Excess advance premium tax credit repayment shows the same amount as reported in line 27

This information on lines the monthly calculations was copied from the three 1095-A's provided by the tax client.  A.  Monthly enrollment premiums  B. Monthly second lowest cost silver plan premium C. Monthly advance payment of premium tax credit

Sorry not sure I follow allocating 0% to the tax payer.  

Am I reporting the information on the Form 1095-A properly?

[TaxGuyBill]

That really has me puzzled, unless maybe you have done some overrides with it that is causing some weirdness.

The IRS rejection error means your tax return does NOT have a 8962, but that it SHOULD have one.

Your return does have a 8962.

So either (a) it is an IRS error and it should not be rejecting, or (b) it is a Lacerte error because it is not including the 8962 with the e-file submission.

So unfortunately, I don't have a solution, other than mailing the tax return.  I wish I had a better answer.

[PPECPA]

Thanks TaxGuyBill

I'm at the end of my rope on this.  I have tried everything and can't seem to correct this.  Keep hoping for a lacerte update to correct this but I'm not getting a good feeling I'll get that

I think I'll print paper return and mail