IRS Tax Return Reject Code F8962-070

The IRS started using this rejection for the tax year 2021. Before 2021, the system was a bit different. Earlier, if the tax return was not included in Form 8962, the IRS sent a letter to the taxpayer. The letter requested that the taxpayer complete the return and then submit the form. However, for the tax year 2021, Form 8962 without any return is simply rejected. Let’s learn more about IRS Tax Return Reject Code F8962-070 with this article.

How to Fix Tax Return Reject Code F8962-070

Take your Form 1095-A. You can download it from healthcare.gov. Forms are available at the end of January. Follow the steps below to avoid rejection:

• Fix the return via any online tax expert solution provider.
• Go to the refiling tab and initiate the fixing process.
• Continue to the preview screen.
• You will be redirected to the earlier screen. From the left menu, select Federal.
• Click Deductions and Credits >> Medical >> Show More.
• Now, start and continue answering the question. Fill in the details on the form.
• Once you are done, click “File” and proceed further with the return.

Tips and Tricks to Avoid Tax Return Reject Code F8962-070

To successfully e-file your return, there are some criteria that you must take into consideration:

Know your income and household

Your data related to the size of household and income on Form 8962 is correct. The Premium Tax Credit is calculated based on MAGI (modified adjusted gross income) and the number of household members.

Revise Form 1095-A

The information regarding the Health Insurance statement or Form 1095-A. The form covers the details about the insurance coverage and the amount of advance premium tax credits (if any).

Verify the Calculation of Repayment Limitation

The limitation on Line 29 of Form 8962 the return amount has a capping as per the income of an individual. Cross-check all the calculations for accuracy.

Modify the Errors

If there is any error in Form 8962, correct them right away prior to submission. Follow the IRS instructions for correcting Form 8962 rightly.

Resubmit the Return

After you complete the necessary corrections in the form, you are all set to submit the return. As you are e-filing, follow the step-by-step instructions of the tax preparer or tax software.

Significant Points of Tax Return Reject Code F8962-070

The important points a taxpayer must remember related to the Tax Return Reject Code F8962-070.

• Rejection began in the tax year 2021.
• The system was initiated to correct and avoid the errors. The reason is that the error delays funding the refund.
• It is a legitimate rejection.
• . The body has a piece of prior information regarding the marketplace insurance of the spouse, dependent, or taxpayer. In case the rejection happens, the IRS receives an advance payment from the insurance.
• In 2021, it was the top rejection across the country and all the software.
• The credentials that should be enclosed with Form 8962 are either the properly completed form or a statement mentioning the need for Form 8962 or a PDF of the ACA calculations.

Conclusion

Reject Code F8962-070 arises when there is a calculation error in Form 8962. The error is limited to only Line 29 of the form. It is related to repayment limitations. The issue is majorly used to reconcile with APTC (Advance Premium Tax Credit) to receive the original PTC (Premium Tax Credit).

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