Question: Mary Ann buys health insurance through the health insurance marketplace, but did not receive a Form 1095-A, Health Insurance Marketplace Statement, showing the months of coverage and premiums paid for the year. She neglected to mention her marketplace insurance to Grace, her tax preparer. Grace e-filed the return without Form 8962, Premium Tax Credit, and the return was rejected. Could the return have been rejected for neglecting to include Form 8962?
Answer: Yes. Form 8962 must be included with the tax return to reconcile Mary Ann’s health insurance payments with the marketplace policy and any advance premium tax credits received. Best practice for Grace, as a tax preparer, would be to include a question that asks about marketplace insurance on her firm’s tax questionnaire.
Previously, returns e-filed without the reconciled advance premium tax credit (APTC) on Form 8962 were not rejected upon filing. Rather, the IRS would correspond with taxpayers by letter, requesting the missing Form 8962 or an explanation for its absence, which simply delayed the processing of the return.
Grace must inform Mary Ann that Form 1095-A is critical when taxpayers are enrolled in Marketplace health insurance and IRS records show that the advance premium tax credit was paid. Mary Ann must provide the form so the rejected return can be corrected. If she does not have it, she can use her HealthCare.gov account to obtain a copy. Grace should resubmit Mary Ann’s return with the completed Form 8962 or a written explanation of the reason for its absence.
More information on how to correct an e-filed return rejected for a missing Form 8962, including frequently asked questions, can be found at https://www.irs.gov/newsroom/how-to-correct-an-electronically-filed-return-rejected-for-a-missing-form-8962.
