NEW 2021 REJECT CODE: F8962-070

This is the IRS’ top reject so far across the country, across all software vendors. Please disseminate this to your staff as you see fit.

  • This reject occurs when the IRS database has record of any SSN on the return receiving an advance payment.
    • Taxpayer, spouse, dependent.
  • Even if they received an advance payment for just one month, the 8962 is required.
  • Providers have until January 31st to mail the 1095-A to taxpayers, so many have not received theirs yet.
  • If they dispute the need for the 8962, the return will be processed by hand, which will result in significant delays, usually 3-6 months.
  • History also tells us the IRS tends to bypass the bank products on many of these hand processed returns. They simply mail a check to the taxpayer.
  • We are still awaiting guidance from the IRS about attaching a PDF for dispute/calculations.

This website has a great deal of useful information on the subject:


On November 17th IRS unveiled a new online identity verification process for accessing self-help tools.

In our opinion, the IRS ID verify process was way overdue for an upgrade. Successfully verifying their old platform was an act of GOD. Rumor is… this process is much easier… probably because they outsourced it.

To get to the IRS – ID.ME sign in or create a new account link – CLICK HERE

Here are all the other important links that you may be interested in

Child Tax Credit Update Portal – CLICK HERE

Online Account – CLICK HERE

Get Transcript Online – CLICK HERE

Get An Identity Protection PIN (IP PIN) – CLICK HERE

Online Payment Agreement – CLICK HERE

Hope this is helpful!


Here is a short update on what changed with the child tax credit & advance child tax credit.

  • One year expansion for 2021 tax year only, per the American Rescue Plan Act of 2021)
  • For tax year 2021, the Child Tax Credit is increased from $2,000 per qualifying child to:
    • $3,600 for children ages 5 and under at the end of 2021; and
    • $3,000 for children ages 6 through 17 at the end of 2021

Note: The $500 nonrefundable credit for other dependents amount has not changed.

  • The advance: 50% of it will be paid in advance with monthly payments. But those montly payments will only rund form July to Decemebr 2021. (The payments will be made on July 15, August 13, Spetember 15, October 15, November, 15 and December 15.) The remaining 50% will be calimed as a credit on your 2021 tax return.
  • Filers can OPT-OUT of the advance by going online and selecting to receive the full CTC on their 2021 tax return instead.
  • IF filers are paid too much (i.e., more than the child tax credit they’re entitled to claim for 2021), they might have to pay back some of the money.
    • Filers with 2021 modified AGI no greater than $40,000 (single filers), $50,000 (head-ofhousehold filers), or$60,000 (joint filers) won’t have to repay any child tax credit overpayments.
    • Filers with a modified AGI from $40,000 to $80,000 (single filers), $50,000 to $100,000 (head-of-household filers), or $60,000 to $120,000 (joint filers) will need to repay a portion of any overpayment.
    • Filers with modified AGIs above those amounts will have to pay back the entire overpayment.
  • The $2,500-of-earned-income required is dropped for 2021, too. Children who are 17 years old also qualify for the 2021 credit.


  • The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:
    • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
    • $112,500 if filing as head of household; or
    • $75,000 if you are a single filer or are married and filing a separate return.
  • The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.
  • The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:
    • $400,000 if married and filing a joint return; or
    • $200,000 for all other filing statuses.

The second phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

If you prefer, here is the link to FAQ – CLICK HERE


To help taxpayers, the IRS annouced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.

Here is quick summary on the press release:

Taxpayer who filed prior to change to the handing of the unemployment benefits

  • IRS will AUTO Recalculate
  • IRS will refund any resulting overpayment or apply to outstanding taxes owed
  • The first refunds are expected to be made in May and will continue into the summer.
  • NO need to file an amendment unless…
    • The calculation changes make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
  • For Taxpayers who have yet to file
    • Our software has been updated to accommodate.
    • Prepare the return as you would normally

CLICK HERE to read the full press release.