IRS Form 8962 E-file error code F8962-006-01 return rejected

[JJV]

The form is computed correctly as confirmed just now by Proseries customer support but IRS rejected it requiring paper filing. Error mssg: "Line 1 Total Exemptions Count has a non-zero value, then Line 5 Federal Poverty Level Pct must be equal to Line 3 Household Income Amount divided by Line 4 Poverty Level Amount" This return cannot be electronically processed. Paper file"

This makes no sense. I feel someone from Intuit should contact IRS if it is their error to look into the false rejection and resolve it. Paper filing is the last resort as it is costly and IRS is severely backlogged. I'm sure they would appreciate a call to fix this as I wont be the only one with tis problem. Anyone with a fix please post. I'm a 35 year loyal user of ProSeries. Thx!

[Just-Lisa-Now-]

You may want to add some additional details about the situation, so someone can help give some ideas to fix it. 

Just a regular 1095A, on a regular return, no allocations or anything special about it?

[JJV]

1095A had one month of data and the credit was properly charged back to the taxpayer on line 17 of the 1040.  Plain vanilla.  A simple W-2 and one 1099-DIV and 1099-B.

[Just-Lisa-Now-]

Did you leave all the other boxes empty or did you input zeros?

[JJV]

On the 1095-A, the only month with an entry is Jan, all others are blank per ProSeries requirements.  I did enter a zero on Line 2b of the 8962 and just resubmitted it.  It was blank on the bounced submission.  I will provide an update.

[JJV]

Last attempt to fill in box 2b on the 8962 form with a zero (was blank on original reject) did not work - rejected again.  The form is done correctly yet the Service claims to want the return paper filed.  So strange.  Will hold hopes that someone reads this and helps with a fix because ProSeries Support says its not their problem.  I disagree.

[Just-Lisa-Now-]

Lets see if Bill has any suggestions, he's an ACA wizard.   

@TaxGuyBill 

[TaxGuyBill]

You aren't entering information directly on the 8962, are you?

Are there any overrides anywhere on the tax return?

What are the numbers in Boxes 1, 2a, 2b, 3, 4 and 5 of the 8962?

[JJV]

No numbers entered in the 8962 form

Boxes:

1.     1

2a.  51,138

2b,  (blank)

3.   51,138

4.   12,760

5.   400%

Thank you.

[JJV]

Also no overrides in the return and both fed and state clear the ProSeries review and transmitted successfully to agencies.  IRS bounced it, MA followed suit based on fed rejection.

[TaxGuyBill]

That is really weird.

Potential things to try:

1. Delete the 1095-A and 8962, and enter it 'fresh' again.
2. Ask the taxpayer if they would be willing to contribute (or increase) their Traditional IRA contribution to get the percentage to 399% or less (being right on 400% could be a weird spot).
3. Wait a week to file to see if it is an IRS quirk and hopefully they will fix it.

However, a note of caution about repeated e-file attempts:  If I remember correctly, if a tax return is rejected 5 times, it is permanently rejected and paper filing is the only option at that point.

[JJV]

Thank you Taxguy Bill and Lisa,

I will try those changes and efile next week and post results.  I did a quick look up on # of rejects permitted in one year.  There is something that says 5 returns in the link Q & A but it was not immediately clear if that is the number in this instance.  I can't imaging trying more that 4 times. The post below references what to do if the return is rejected and procedure for paper filing. (I'm an optimist trapped in a pessimist's body.)

JJV

https://www.irs.gov/e-file-providers/frequently-asked-questions-e-file-requirements-for-specified-ta...

There are other situations where the reject may or may not be corrected but it takes one or more tries to resolve. For example, some rejects are based on information on file with the Social Security Administration (SSA). Tax returns often require that both the name and date of birth associated with an SSN match SSA records. Taxpayers sometimes forget to update their records with SSA when they marry or divorce and this can cause their tax returns to reject. The reject can be resolved by matching SSA records, but if there is some other problem at SSA like a problem with the date of birth, the reject sometimes cannot be resolved. When this happens the return must be filed on paper. Attach Form 8948 to the paper return and check box 4; enter the reject code number and the number of attempts you made to resolve the reject before deciding that the error could not be fixed. Preparers generally learn from experience when trying to resolve an error is no longer productive.

[JaUrbanski]

Same problem here.  I called Proseries 10 days ago, rep said they were aware of the error, but still no resolution as of today.

I would hate to have the client's tax return end up on a cart in some IRS office and never be processed...

[JaUrbanski]

Is anyone at Intuit paying any attention to this forum?  This is the same error message I called them about late February and still not fixed.

Please let us know when software will be corrected to allow e-filing for these returns!!

[JJV]

Sorry to hear you did not get a response yet.  What is disturbing is that your call apparently was not logged.  When I called on my issue I said I can't really be the only person with the problem and she said there are zero references to Form 8962 errors.  It is true that I too saw nothing on this forum but I question their call log database now.  Thanks for sharing.  Have you tried to delete the 1095-A and 8962 then reenter them and resubmit?  I'm going to try this next week.

[JaUrbanski]

Let us know what you find when you try this.  If it works great!

I would try as well, but right now recovering from a crashed Lenovo computer for four days - Ugh!

[JJV]

I'm going to wait another couple of weeks before resubmitting.  I will post an update.

[Kunj Sheth]

I am also facing similar issue with form 8962 since late February. My form 8962 details are

1. 3

2a. 87,058

2b 0

3. 87,058

4. 21,720

5. 400%

I believe Line 5 should be 401.82 % but proseries is calculating it at 400% and hence the rejection error . I don't see any option to override this either.

[TaxGuyBill]

---

@Kunj Sheth wrote:

I am also facing similar issue with form 8962 since late February. My form 8962 details are

1. 3

2a. 87,058

2b 0

3. 87,058

4. 21,720

5. 400%

I believe Line 5 should be 401.82 % but proseries is calculating it at 400% and hence the rejection error . I don't see any option to override this either.

---

No, it is 400.82%, and the program is correctly dropping the 0.82%, so it is correctly showing 400%.

If you are getting the error message as mentioned in the original post, have you tried to enter a small Traditional IRA contribution to slightly lower income (assuming the taxpayer would be willing to do that)?

[JJV]

Opening a small IRS contribution as a solution seems like a hefty workaround - especially considering the hastle these stray accounts create for short money.  Nope, not recommending that.  ProSeries needs to fix this.  The program is not usable for the purpose it was made and sold.  Our clients will go to other practitioners who have software that works.  I have another bug on Mass corp return on the Research Credit form RC - still not fixed 2 years in a row.  Yikes.  Please address this as refunds are being held up.

[TaxGuyBill]

---

@JJV wrote:

Opening a small IRS contribution as a solution seems like a hefty workaround - especially considering the hastle these stray accounts create for short money.  Nope, not recommending that.  ProSeries needs to fix this.  The program is not usable for the purpose it was made and sold.  Our clients will go to other practitioners who have software that works.  I have another bug on Mass corp return on the Research Credit form RC - still not fixed 2 years in a row.  Yikes.  Please address this as refunds are being held up.

---

You are getting an IRS reject code, not a ProSeries rejection.  So that likely means it is an IRS problem, not ProSeries.

[JJV]

TaxGuyBill,

We disagree on this.  Think for a moment how that call to IRS would go.  I would not wish that on my worst enemy.  We buy the product to electronically feed into IRS, when it doesn't work ya fix it.  That means its ProSeries responsibility to fix it, not we the users/licensees who don't have time for this in the heat of tax season.    

[Alyson]

I'm having the same problem.  Was anyone able to get a resolution? 

[JJV]

No electronic software fix or response from ProSeries.  I paper filed the return even though the full PTC was repaid. 

[JaUrbanski]

The way I removed the error was for the client to make a $100 HSA contribution, reducing line 5 to 399%.  Error message went away, efile successful.  Obviously something wrong with having exactly 400% and that needs to be fixed by Intuit!