IRS says Form 8962 Part 2 doesn't match their records - TurboTax left Part 2 blank when claiming 0% of Premium Tax Credit
My husband was on his sister's Marketplace insurance plan for about half of last year, then switched to my employer's plan after we got married in June. When filing our taxes, his sister agreed to claim 100% of the premium tax credit since her household income is significantly lower than ours - if we had claimed any portion, we would have owed a substantial amount back to the IRS. His sister filed her return claiming the full 100% and already received her refund. However, we just got a letter from the IRS saying that Part II of our Form 8962 doesn't match their records. They've asked us to send a copy of the 1095-A to support our claim and possibly submit a corrected Form 8962. I filed through TurboTax and just reviewed our 8962 form - it's basically empty. In Part II, TurboTax checked the box indicating we're allocating with another taxpayer, and on line 30 it shows the allocation information with all our allocation percentages entered as 0.0. After reading the instructions, it seems we need to complete the table in Part II, but we would multiply the values from the 1095-A by our allocation percentage (0%), which would just result in all zeros anyway. Is the issue that the form is blank rather than showing explicit zeros? We were concerned they might question why we allocated 100% to his sister and 0% to us, but now it seems their issue is with the actual numbers in Part II. Do we just need to send them the 1095-A copy, or do we need to correct something on the 8962? Additional info: His sister received two 1095-As, one with my husband's name and one without. We're wondering if the IRS doesn't have the 1095-A that shows my husband's name on it, and we just need to send that form without correcting the 8962. On the 1095-A with my husband's name, his sister is listed as the primary recipient, and it includes her husband and other dependents. My husband never received a separate 1095-A where he was the primary recipient.
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Sofia Peña
This is actually a pretty common situation when allocating Premium Tax Credits. The IRS system is likely flagging this because they see your husband was listed on a 1095-A but don't see corresponding entries in Part II of your 8962 form. What you need to do is complete Part II of Form 8962 with zeros, rather than leaving it blank. Even though the calculation results in zeros (because you're allocating 0%), you still need to show the work. Fill in columns A-F for each month your husband was covered, but multiply by 0% to show explicit zeros in the calculations. You should definitely send a copy of the 1095-A that shows your husband's name on it. Also include a brief explanation stating that you agreed to allocate 100% of the PTC to his sister (include her name and tax ID if possible) and 0% to yourselves. The IRS computer systems are looking for a complete Form 8962 that reconciles with their records of who was covered. When they see someone on a 1095-A but don't see the corresponding entries on a Form 8962, their system flags it automatically.
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Aaron Boston
•So basically TurboTax messed up by not filling in all those zeros? Is this something I can just fill in by hand on the copy of the form I have, or do I need to file an amended return with a corrected 8962?
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Sofia Peña
•You don't need to file an amended return for this. Complete a new Form 8962 with the table in Part II filled out properly (showing the months your husband was covered and the 0% allocation). Write "CORRECTED" at the top of the form. Send this corrected form along with a copy of the 1095-A that shows your husband's name, plus a brief explanation letter. This is what the IRS is requesting in their letter to you - supporting documentation to resolve the discrepancy they found. This is considered additional information rather than an amendment to your return.
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Sophia Carter
Had this exact same issue last year. I used https://taxr.ai to analyze my 8962 form and discovered TurboTax had left the monthly allocation section completely blank instead of showing zeros. The service quickly spotted that the IRS would flag this as an error since they need to see the monthly premium amounts with calculation showing 0% allocation. I manually filled in the numbers on a new 8962 form, made a photocopy of my 1095-A, and sent it in with a brief explanation letter. Got my refund about 3 weeks later without any further questions. The IRS just needs to see the reconciliation between what's on the 1095-A and what's on your 8962, even if your allocation is 0%. It's all about their matching system.
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Chloe Zhang
•Does taxr.ai actually work for stuff like this? I've got a similar issue with my 8962 form but it's more complicated - my ex-wife and I are allocating percentages for different months when our daughter switched between our plans.
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Brandon Parker
•I'm skeptical about these online tools. Couldn't you just look at the form instructions yourself rather than paying for some service to tell you that you need to fill in zeros?
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Sophia Carter
•The tool absolutely works for complicated allocation situations - it's specifically designed to catch these types of form errors that tax software sometimes misses. It compares what the IRS expects to see vs what your forms show. In your case with changing allocations across different months, it would help ensure you're doing those calculations correctly. I understand the skepticism, but the value isn't just telling you to fill in zeros - it was being able to upload my forms and get an immediate analysis of exactly what was wrong and how to fix it, with side-by-side comparison of what the IRS expects. For complicated situations like yours with multiple allocations across different months, it can help prevent errors that might trigger an audit.
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Chloe Zhang
I tried taxr.ai after seeing it mentioned here and wow - it actually identified exactly what was going on with my form 8962 issues. I uploaded my 1095-A and my draft 8962 form, and it immediately highlighted that I had incorrect allocation percentages for the months my daughter switched between my insurance and my ex-wife's. The tool even generated a corrected version showing exactly how to fill out Part II with the proper monthly premium amounts and percentages. Saved me from what would have definitely been an IRS notice. I was going to hire a CPA to fix this (my tax situation is a mess with the divorce and insurance changes), but the service guided me through it step by step. Just wanted to report back since I was skeptical at first but it was genuinely helpful.
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Adriana Cohn
Another option is to call the IRS directly about this, but good luck actually reaching someone. I spent WEEKS trying to get through about a similar 8962 issue last year. I finally used https://claimyr.com and their system got me through to an IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent was able to tell me exactly what was wrong with my 8962 form and confirmed I just needed to send in the corrected form with the supporting 1095-A. It was seriously worth it after wasting hours on hold previously. The IRS phone system is absolutely brutal these days.
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Jace Caspullo
•How does Claimyr actually work? Does it just call the IRS for you and then you get on when they answer? Seems too good to be true considering how impossible it is to get through.
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Melody Miles
•No way this actually works. I've called the IRS dozens of times and it's always "due to high call volume" then disconnect. If there was some magic back door to reach them everyone would be using it.
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Adriana Cohn
•It doesn't call for you - it uses a system that navigates the IRS phone tree and stays on hold so you don't have to. When an agent finally answers, you get an alert and jump on the call. You're still talking directly with the IRS, the service just handles the nightmare of waiting on hold and getting disconnected. I was skeptical too, but after trying for weeks to get through on my own, I was desperate. It monitors the IRS queue using their algorithm and calls at optimal times when wait times are shortest. It's not a magic backdoor - you're still going through the normal IRS channels, just with technology handling the frustrating part.
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Melody Miles
I'm eating some serious crow here. After posting that skeptical comment about Claimyr, I decided to try it anyway out of desperation (fighting with the IRS about my 8962 form for MONTHS). It actually worked. I got connected to an IRS agent in about 20 minutes, which is a miracle considering I'd spent countless hours trying on my own. The agent immediately pulled up my file and explained exactly what documentation I needed to send in. For anyone dealing with 8962 issues like the original poster - definitely consider this service if you need to speak with someone at the IRS. The agent I spoke with said they're getting thousands of these Premium Tax Credit allocation issues because the tax software programs aren't completing the forms correctly. He walked me through exactly how to fill out Part II even with 0% allocation.
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Nathaniel Mikhaylov
One thing nobody has mentioned - make sure both you AND the other person (your husband's sister) are on the same page with the allocation percentages. I had a situation where my ex claimed a different allocation percentage than I did for our daughter's Marketplace insurance, and we both got audited. The IRS computers will cross-check the allocated percentages between both returns, and they need to add up to 100%. Definitely make copies of EVERYTHING before you send it in, and consider sending it certified mail so you have proof of delivery.
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Hunter Hampton
•That's a really good point! I just double-checked with his sister and confirmed she did claim 100% on her Form 8962. I think that's why she got her refund without any issues, and we're the ones getting the letter. Seems like it's just a matter of showing our work with the zeros instead of leaving it blank. Should I mention her name and SSN in the explanation letter I'm attaching? Or is that unnecessary since the IRS already has her return?
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Nathaniel Mikhaylov
•Yes, definitely include her name and the last 4 digits of her SSN in your explanation letter. This makes it much easier for the IRS to cross-reference the returns and verify that the 100% allocation adds up correctly between both parties. You don't need to include her full SSN for privacy reasons, but the last 4 digits plus name and relationship will help the IRS agent quickly resolve the issue without having to search for the connected return.
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Eva St. Cyr
I'm so confused about all this Premium Tax Credit stuff. This is my first year dealing with Marketplace insurance. So if my mom claimed me on her insurance for part of the year, do I need to fill out this 8962 form too even if I'm not claiming any of the credit? I didn't get a 1095-A form myself.
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Kristian Bishop
•If you were on your mom's Marketplace plan and she received the 1095-A with your name on it, you need to coordinate with her on how you're allocating the Premium Tax Credit. If she's claiming 100% and you're claiming 0%, then yes, you still need to complete Form 8962 showing your 0% allocation. You won't get a separate 1095-A if you were just listed as a covered individual on her policy. She should have the 1095-A that shows both of you. Ask her for a copy so you can complete your Form 8962 correctly.
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Eva St. Cyr
•Thank you for explaining! I'll ask my mom for a copy of her 1095-A. I wasn't claiming any of the credit so I didn't think I needed to do anything about it on my taxes. No wonder the IRS is sending so many of these letters to people!
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ApolloJackson
Just went through this exact same situation last month! The IRS letter can be scary but it's actually a pretty straightforward fix. Like others mentioned, you need to complete Part II of Form 8962 showing all the monthly calculations with your 0% allocation - even though it results in zeros, the IRS needs to see the work. Here's what worked for me: I filled out a new Form 8962 with "CORRECTED" written at the top, completed the monthly table in Part II showing the premium amounts from the 1095-A multiplied by 0%, attached a copy of the 1095-A that showed my name, and included a brief letter explaining the 100%/0% allocation agreement with the other taxpayer (including their name and last 4 of SSN). Sent it certified mail and got a letter back in about 6 weeks saying the matter was resolved. The key is showing the IRS that you properly reconciled with the 1095-A information they have on file, even with a 0% allocation.
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