Reject codes F8863-512-02 and F8962-070 occur when:
The student's name and Social Security Number (SSN) on Form 8863 (Education Credits) do not match the IRS e-File database.
The IRS e-File database shows that Form 8962 (Premium Tax Credit) or an ACA Explanation attachment is missing from the return.
For each student in Form 8863, Line 20 'StudentNameControlTxt' and Line 21 'StudentSSN' must match the e-File database. The e-File database indicates that Form 8962 or a binary attachment with a description containing "ACA Explanation" must be present in the return.
Solution:
This error occurs for two reasons, and both must be addressed to resolve it:
Part 1: Matching Student Information in Form 8863
Verify the Student's Name and SSN:
Open Form 8863 in your tax software.
Cross-check the Student Name (Line 20) and SSN (Line 21) fields.
Ensure that the information matches exactly as it appears on the IRS e-File database or the student's Social Security card.
Pay special attention to:
Typos or misspellings in the name.
Incorrect or incomplete SSN entries.
Correct the Name Control:
The IRS uses the first four characters of the last name to verify the Name Control. Ensure that the last name matches the student's records.
Part 2: Adding Form 8962 or ACA Explanation
Determine if the Return Requires Form 8962:
This form is required if the taxpayer received Advanced Premium Tax Credits (APTC) as part of health insurance purchased through the Marketplace.
If applicable, verify that Form 1095-A is correctly entered, as this generates Form 8962 in the return.
If No 1095-A Exists:
If the taxpayer did not receive a Form 1095-A but the IRS e-File database expects Form 8962, provide an explanation.
Attach a binary document (PDF) with a description containing "ACA Explanation" to the return.
Steps to Resolve in Your Software:
Correct Student Info:
Go to Form 8863, and ensure the Student Name and SSN fields are accurate.
Verify against the student's Social Security card or other legal documents.
Check for Form 8962:
Enter the taxpayer’s Form 1095-A information, if applicable.
Ensure Form 8962 is included and properly completed in the return.
Attach ACA Explanation (if required):
If the taxpayer did not receive Form 1095-A, attach a document with an explanation as to why it is not applicable.
Use your software’s attachment feature to upload a PDF, with the description “ACA Explanation”.
Recalculate the Return:
After making the corrections, recalculate the return to ensure the error is cleared.
Refile the Return:
Once all errors are resolved, retransmit the return.
Additional Notes:
If the issue persists, contact the IRS e-File help desk or your software provider to confirm the details in the e-File database for the student or taxpayer.
Errors regarding Form 8863 and Form 8962 often indicate mismatches in IRS records, which may require taxpayer documentation to resolve.
This will resolve the error and allow the return to be successfully filed.