Reject code F8962-038 occurs when the Total Premium Tax Credit (Line 24) on Form 8962 does not match the allowed amount on either Line 11E (Annual Premium Tax Credit Allowed) or the sum of Lines 12E through 23E (Monthly Premium Tax Credit Allowed). This mismatch prevents the tax return from being accepted.
Solution:
This error typically occurs due to inconsistencies or miscalculations in the Premium Tax Credit section of Form 8962. Here’s how to resolve it step by step:
Step 1: Verify Form 8962 Calculations
Check Line 11E:
Confirm the value entered in Line 11E is accurate based on the Annual Premium Tax Credit calculation.
Review the Form 1095-A provided by the taxpayer, as this form is essential for filling out Form 8962.
Check Lines 12E–23E:
Sum up all the amounts from Lines 12E through 23E (Monthly Premium Tax Credit Allowed Amounts).
Ensure the total matches either Line 11E or Line 24.
Compare Line 24:
Verify that the amount entered in Line 24 matches Line 11E or the sum of Lines 12E–23E.
If they don’t match, recalculate the correct value.
Step 2: Review Form 1095-A
Check for Data Entry Errors:
Cross-check the information entered on Form 8962 (Lines 11–24) with the Form 1095-A received by the taxpayer.
Ensure the following details match:
Monthly Premium Amounts
Monthly Advance Payment of Premium Tax Credit
Monthly Premium Tax Credit Allowed
Correct Any Inaccuracies:
If the Form 1095-A data was entered incorrectly, update it and recalculate the amounts on Form 8962.
Step 3: Common Scenarios to Address
Miscalculation of Monthly Amounts:
If Line 24 is derived by summing Lines 12E–23E, double-check each monthly entry for accuracy.
Missing Data:
Ensure all required fields on Form 8962 are filled out.
Missing or incomplete data can cause discrepancies.
Incorrect Annual Calculation:
If Line 24 is based on Line 11E, confirm that the Annual Premium Tax Credit calculation matches the taxpayer’s Form 1095-A details.
Step 4: Update and Refile
Correct the Form:
Update Form 8962 with the accurate calculations.
Recalculate the return to ensure the error is resolved.
Refile the Return:
Once the error is corrected, retransmit the return.
Additional Notes:
If the taxpayer has multiple Forms 1095-A (e.g., multiple coverage periods), ensure all information is properly consolidated on Form 8962.
Errors in Form 8962 are often flagged due to discrepancies between the taxpayer's reported amounts and the IRS’s records. Ensure all details align.
This process should resolve the error and allow the return to be accepted.