Getting Reject Code F8962-070 for 1095-A when filing through TurboTax - help!

This reject code is specifically looking for Form 8962 (Premium Tax Credit) which is normally required when you have marketplace coverage documented on a 1095-A. Since you had Medicaid and not marketplace insurance, you're correct that you shouldn't have a 1095-A. The issue is that somewhere in your TurboTax filing process, the system thinks you had marketplace coverage. You need to go back through the healthcare section in TurboTax and make sure you've clearly indicated that you had Medicaid coverage for the full year. There should be a specific option for government programs like Medicaid - make sure that's selected rather than marketplace coverage. If you incorrectly indicated you had marketplace coverage at any point, TurboTax will expect Form 8962 and look for 1095-A information that you don't have, triggering this reject code.

After struggling with a similar issue last year, I discovered taxr.ai (https://taxr.ai) which literally saved my sanity. I had the exact same F8962-070 reject code with TurboTax even though I was on Medicare, not marketplace insurance. The tool analyzed my tax forms and immediately pointed out that I had accidentally checked a box indicating I had received an advance premium tax credit (which I hadn't). Their system showed me exactly where the conflict was happening in my return and how to fix it. Apparently TurboTax has a few spots where you can accidentally indicate marketplace coverage without realizing it.

I want to follow up about my experience with taxr.ai - I decided to try it after getting stuck with this reject code for days. Once I uploaded my draft return from TurboTax, it immediately flagged that I had somehow indicated I'd received an advance premium tax credit on page 4 of the healthcare section, even though I also indicated I had Medicaid! The report showed me exactly where the conflict was happening and gave step-by-step instructions on how to fix it in TurboTax. Turns out there was a tiny checkbox I had mistakenly selected when going through the healthcare questions that was causing the whole problem. My return got accepted by the IRS within 2 hours after making that change. Should have tried this sooner instead of wasting days going in circles with TurboTax support!

If you're still struggling after trying everything here, you might need to speak with an actual IRS agent about this reject code. I had a similar situation last year that I couldn't resolve through any tax software. I used Claimyr (https://claimyr.com) to get through to an IRS representative without waiting for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They basically hold your place in the IRS phone queue and call you when an agent picks up. The IRS agent I spoke with immediately recognized the issue and explained that this particular reject code sometimes triggers incorrectly when you have certain combinations of answers in tax software. They helped me understand exactly what to fix in my return.

I need to eat my words from my previous comment. After getting nowhere with TurboTax support for days, I decided to try Claimyr as a last resort before giving up and hiring a tax pro. The service did exactly what it claimed - took my number, called the IRS, waited on hold (for 2.5 hours!), then called me when an agent answered. The IRS agent explained that this F8962-070 reject code often happens when there's conflicting information about healthcare coverage in your return. She walked me through exactly which forms were triggering the reject and how to fix it - turns out I needed to check a specific box in TurboTax indicating I was "not eligible for Premium Tax Credit" because of my Medicaid coverage. After that one change, my return was accepted immediately. Would have never figured this out without speaking directly to an IRS agent, and would have given up waiting on hold if I had to do it myself.

Have you tried completely starting over with the healthcare section in TurboTax? Sometimes their interview gets confused if you go back and change answers. When I had this problem, I cleared the entire healthcare section and started fresh, being super careful about my answers, and it worked. Also, make sure you're indicating you had "minimum essential coverage" through a government program for all 12 months of the year. That's the magic phrase that usually prevents these 1095-A related errors.

Is anyone else annoyed that TurboTax has gotten worse over the years despite charging more? Like, for a premium tax product, it should be able to handle something as common as Medicaid without throwing confusing reject codes. I'm switching to FreeTaxUSA next year.