Form 8962: Premium Tax Credit

Form 8962 is generally completed by identifying the taxpayer’s household and applicable health coverage, entering household income and premium information, accounting for advance payments, and calculating the premium tax credit. The information should generally agree with the taxpayer’s marketplace and tax records.

The basic process is to gather the required household, income, health coverage, and premium information, enter the applicable amounts, complete the premium tax credit calculation, reconcile advance payments, and review the completed form before submitting it with the applicable tax return. Taxpayers should retain supporting health insurance and tax records.

Section 1

Enter the taxpayer’s identifying and filing information. This generally includes the taxpayer’s name, identifying information, filing status, and other information needed to associate Form 8962 with the applicable federal tax return.

The information should be reviewed carefully to make sure it is accurate and consistent with the taxpayer’s tax return and health insurance records.

Section 2

Enter applicable household information used to determine eligibility for the premium tax credit. This generally includes information about the taxpayer, spouse when applicable, and other members of the tax household.

Taxpayers should review household and tax records carefully to help ensure that the correct individuals and applicable information are included.

Section 3

Enter applicable household income and related information. This information is generally used to determine the taxpayer’s applicable household income for purposes of calculating the premium tax credit.

Taxpayers should compare the amounts with their federal tax records and other supporting documentation before completing the credit calculation.

Section 4

Enter information about qualifying health coverage and applicable premiums. This generally includes information associated with marketplace coverage and the premiums for the applicable coverage period.

Taxpayers should compare the information with marketplace statements and health insurance records to help ensure that the amounts and coverage information are accurate.

Section 5

Enter applicable information about advance payments of the premium tax credit. These payments may have been made during the year to help reduce the amount paid for qualifying health coverage.

Taxpayers should compare the reported advance payment amounts with their marketplace records and applicable tax documents before completing the reconciliation.

Section 6

Complete the applicable premium tax credit calculation. The calculation generally uses household information, income, family size, premiums, and other applicable information to determine the amount of credit allowed.

Taxpayers should review the calculation carefully and make sure the information used is supported by their health insurance, household, and tax records.

Section 7

Reconcile the premium tax credit with any advance payments received during the year. The reconciliation generally determines whether the taxpayer received the appropriate amount of advance credit based on the information reported on the federal tax return.

Taxpayers should review the calculated amount carefully and compare it with marketplace and tax records before determining the final result.

Section 8

Enter any additional applicable information or adjustments required by Form 8962. The information may depend on changes in household circumstances, health coverage, income, filing status, or other applicable factors.

Taxpayers should include only information that applies to their situation and retain supporting documentation for the amounts and information reported.

Section 9

Determine the final premium tax credit or applicable amount to be reported with the taxpayer’s federal tax return. The final calculation should generally reflect household information, qualifying coverage, premiums, income, and advance payments.

Taxpayers should compare the final amount with their supporting health insurance and tax records before submitting the return. The applicable amount should be reported according to the requirements that apply to the taxpayer’s return.

Section 10

Review the completed Form 8962 and make sure all applicable information has been entered. Check the taxpayer information, household members, income, family size, health coverage, premiums, advance payments, calculations, and final credit or reconciliation amount.

The completed form should generally be included with the applicable tax filing when required. Taxpayers should also keep a copy of Form 8962 and supporting health insurance, household, and tax records for their records.

Final Review

Review Form 8962 after completing all applicable sections. Check the taxpayer information, household information, filing status, income, family size, health coverage, premium amounts, advance payments, calculations, supporting records, and final credit or reconciliation amount.

A final review can help identify calculation or reporting errors before the form is submitted. Taxpayers should retain Form 8962 and supporting health insurance, household, income, and tax records with their tax records.