The IRS has been rejecting Individual returns with error code F8962-006-01 when Line 5 of Form 8962 is 400 or greater. Our calculation aligns with current form instructions; however, we will be updating it to conform with the IRS guidance below to eliminate the e-file rejections.
Please hold any returns with this reject message until after we release an update to the form.
"While the original sentence is still correct, we made the change from “401” to “400” to improve the processing of returns. We intend that no one will have the result of 400. The change will not impact the end result on Form 8962. Table 2 on page 9 of the instructions demonstrates that if the amount on line 5 is 400 or more, then the applicable figure is 0.0850.
Therefore, taxpayers with household income of 400% or more of the federal poverty line for their family size should enter 401 on line 3 of Worksheet 2 and on line 5 of Form 8962.
Please note we are not re-releasing the 2021 Form 8962 instructions for this change. You should rely upon the article posted on IRS.gov. ”
