If you’ve received Reject Code 8962-057 while filing your tax return, it typically means there’s an issue with how the Health Insurance information—specifically the allocation of policy amounts—was entered on Form 8962.
What Does This Rejection Mean?
This rejection occurs when the IRS cannot match the Premium Tax Credit (PTC) information you reported with what’s on file. One common cause is incorrect or missing allocation of policy amounts when multiple taxpayers are listed on a single Form 1095-A.
How to Fix It
To resolve this issue:
1. Review Your Health Insurance Entries
After logging into your account, follow the steps below:
- Select Fix Return x2
- Click "Health Insurance" located within the left menu
- Double-check the information you entered from Form 1095-A.
2. Determine If You Need to Allocate Policy Amounts
If the policy listed on your Form 1095-A covers individuals from more than one tax household (e.g., divorced parents, shared custody, or roommates), you may need to allocate the policy amounts between the households.
3. Use the IRS Guidelines
For detailed instructions on how to allocate policy amounts correctly, refer to this helpful article from our KB: How to report shared policy allocation on Form 8962 (Marketplace insurance)?
4. Update and Resubmit Your Return
After making the necessary corrections, resubmit your return to the IRS using the "E-file" section in the left navigation menu.
Note: When allocating the percentage on the return, enter the percentage for the person filing this return- not the other person whose SSN you entered above.
Need More Help?
If you're still unsure whether you need to allocate or how to do it, the article linked above provides examples and step-by-step guidance. Taking a few minutes to review it can save you from further delays.