Form 8962
Forms

Form 8962: Premium Tax Credit

IRS Form 8962 is a form used to calculate the amount of premium tax credit you’re eligible to receive, or determine if you owe money to the Internal Revenue Service (IRS) if you received more than the allowable amount of advance premium tax credit (APTC). This form should be completed along with Form 1095-A, which your local health marketplace will supply. It’s important to complete Form 8962 if you receive a Form 1095-A, as it is used to reconcile the difference between the amount of advanced premium tax credit you received and the amount of premium tax credit you’re eligible to receive. The form is available on the IRS website, and can be e-filed and mailed to the regional IRS office that covers your state of residence. To complete Form 8962, you will need Form 1095-A, your modified adjusted gross income, and your annual and monthly contribution amounts based on your family size and household income.

What is Form 8962?

IRS Form 8962: Premium Tax Credit is used to calculate the amount of tax credit an eligible person can receive on their health insurance premiums if they purchased through the Marketplace. It can also determine if the individual received too much advanced premium tax credit or owes money to the IRS. In order to file Form 8962 you must have Form 1095-A from your marketplace, and you’ll need to provide your family size, modified adjusted gross income, and household income when filling out the form. Additionally, the form can be used to allocate policy amounts and for an alternative calculation of the year of marriage. You can find the form on the IRS website and file it along with your Form 1040 when you file your taxes.

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IRS Form 8962 – Who Needs to Fill It Out?

IRS Form 8962 – Who Needs to Fill It Out? You need to fill out and file Form 8962 with your tax return if you purchased health insurance through the Affordable Care Act’s Health Insurance Marketplace and you wish to claim the premium tax credit or you received advance payments of premium tax credits during the year. This form is completed with Form 1095-A, which you should receive from the Marketplace, and form 1040, which records your modified adjusted gross income. Although you don’t need to file Form 8962 if you are covered by a health insurance plan at work or purchased the insurance outside of the Marketplace, you may need to if you received an advanced premium tax credit through the healthcare marketplace regarding a 12C letter. In that case, it is important to fill the Form 8962 with help from a Form 1095-A accurately, as it determines whether or not you owe money to the IRS.

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Step-by-Step: Form 8962 Instructions For Filling Out the Document

Form 8962 is used by individuals who purchased health insurance through the Affordable Care Act’s Health Insurance Marketplace and need to report any Advanced Premium Tax Credits (APTC) they received. To complete Form 8962, you’ll need to use your Form 1095-A, which your local health marketplace should send you. This form includes information about your coverage, such as premiums paid and premium tax credits used. Along with the Form 1095-A, you’ll use Form 8962 to reconcile the difference between the amount of advanced premium tax credit you received and the amount of premium tax credit you’re eligible to receive, to accurately calculate how much you owe or receive from the IRS. The completed form should then be included with your Form 1040 and submitted to the IRS regional office that covers your state of residence.

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Below, we present a table that will help you understand how to fill out Form 8962.

Information Required for Form 8962 Details
Form 1095-A Health Insurance Marketplace coverage details
Advanced Premium Tax Credits (APTC) Received Amount received from the Marketplace
Premium Tax Credits Eligible to Receive Amount you’re eligible to receive
Reconciliation of APTC Difference between APTC received and eligible amount
Form 1040 Your annual tax return form

Do You Need to File Form 8962 Each Year?

Do You Need to File Form 8962: Premium Tax Credit Each Year? You only need to fill out and file Form 8962 if you purchased health insurance through the Marketplace and qualify for premium tax credits, or received advanced payments of the credit during the year. You use the form to reconcile the difference between the amount of credit you received with the eligibility for the credit based on your income for the year. The American Rescue Plan Act of 2021 abolished the cap on income for the advanced premium tax credit, so if you are getting health insurance through the Marketplace you must be ready to include Form 8962 when you file your tax return.

Download the official IRS Form 8962 PDF

On the official IRS website, you will find a link to download Form 8962. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8962

Sources:
https://www.irs.gov/forms-pubs/about-form-8962
https://www.irs.gov/instructions/i8962

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