F8962-070 Error Code - Return Rejected Twice (No Marketplace Insurance)

This is almost certainly related to a data mismatch somewhere in your return. The F8962-070 error typically indicates that the IRS system believes you received advance premium tax credits (APTC) for Marketplace insurance, which would require Form 8962 reconciliation. However, since you state you didn't have such coverage, there might be several possible causes: 1. Your employer or another entity may have possibly submitted a Form 1095-A to the IRS indicating you had Marketplace coverage 2. There could potentially be an identity mix-up where someone else's insurance information is being associated with your SSN/ITIN 3. You might have inadvertently checked a box in your tax software indicating you had Marketplace coverage I'd suggest carefully reviewing your entire return, particularly any healthcare-related sections, before resubmitting.

I had a similar issue. Here's what worked for me: Step 1: Contact the Marketplace at 1-800-318-2596 to verify if they have any 1095-A forms issued under your name/SSN Step 2: If they don't show any records, ask them to provide a written statement confirming this Step 3: When filing again, make absolutely sure you're answering "No" to any questions about Marketplace coverage Step 4: If using tax software, check if there's an option to override or explain the situation Step 5: If rejected a third time, you might need to paper file with a written explanation Does anyone know if this approach still works for 2023 tax returns?

I'm a tax preparer and see this exact error code approximately 27 times each tax season. In exactly 92% of these cases, the issue is resolved by obtaining a corrected 1095-A or confirmation of no coverage from the Marketplace. The F8962-070 rejection code specifically means "Form 8962, Premium Tax Credit is required but not attached to the return." The IRS database shows you received $1 or more in APTC (Advance Premium Tax Credit) payments. You must call the Marketplace at 1-800-318-2596 and have them research their records. They can issue a corrected 1095-A showing $0 APTC if appropriate. Once you get this corrected document, you can refile electronically with Form 8962 showing $0 reconciliation.

I've helped several clients resolve this exact issue. Here's what you need to do: • Call the Marketplace directly at 1-800-318-2596 • Request verification of any 1095-A forms issued in your name • Ask for written confirmation that no forms exist if that's the case • Request they correct any erroneous records in their system • Obtain documentation of the correction The challenge is actually reaching a Marketplace representative. Wait times can exceed 2-3 hours during tax season. If you're struggling with this, I've had clients use Claimyr (https://www.claimyr.com) to avoid the hold times. They'll call and wait on hold, then connect you once a representative answers. Saved one client almost 4 hours of hold time last week.

Think of this like getting mail addressed to someone else who used to live at your address. The system is looking for Form 8962 because somewhere in the vast database of healthcare information, there's a record with your tax ID attached to it - like mail with your name but meant for someone else. The Marketplace (healthcare.gov) is the gatekeeper here. They're like the post office that can redirect the mail correctly. Call them at 1-800-318-2596 and explain you're getting this rejection code but never had coverage. They can search their records and either: 1. Find the incorrect record and fix it 2. Provide documentation confirming you had no coverage I'd be cautious about simply ignoring this and paper filing without addressing the underlying issue. Like an unpaid parking ticket, these things tend to come back later as bigger problems if not properly resolved.

This is potentially more concerning than just a filing error. According to IRS Publication 974 and the Affordable Care Act provisions, when the system flags your return with code F8962-070, it means the IRS has received information from the Marketplace that you received premium tax credits. This could indicate either a data error or potentially identity theft. Per Internal Revenue Code §36B and supporting regulations, you should: 1. Contact the Marketplace immediately (1-800-318-2596) 2. Request a full accounting of any 1095-A forms issued with your tax identification number 3. If unauthorized use of your identity is confirmed, consider filing Form 14039 (Identity Theft Affidavit) with the IRS 4. Document all communications thoroughly The implications extend beyond just this year's filing - uncorrected errors could affect future years and potentially trigger compliance reviews.

Just to clarify what others have said - as someone who's been through the international tax filing process many times, this error is usually fixable without too much trouble. The F8962-070 code specifically means the IRS system thinks you received advance premium tax credits but didn't include Form 8962 to reconcile them. In my experience with clients on work visas, sometimes there's confusion in the system about your insurance status because employer-provided international health coverage doesn't always report properly to US systems. The quickest resolution is usually calling the Marketplace directly rather than the IRS, as they can verify whether any 1095-A forms were generated for you and correct any errors.