Form 8962 is used to calculate the amount of your premium tax credit (PTC) and reconcile any advance premium tax credit (APTC) taken. If you have enrolled in a health insurance plan through the Marketplace, you may have chosen to take the APTC. This means government funds were paid directly to your insurance company to assist in covering your monthly premium.
Below is a 5-part breakdown of Form 8962:
Part I: Annual and Monthly Contribution Amount
- You will enter the number of exemptions from Form 1040.
- Next, enter your Modified Adjusted Gross Income (MAGI).
- Take the total of both Line 2a and Line 2b and add them to Line 3.
- On Line 4 you will enter your FPL, known as the Federal Poverty Level. Note: the FPL is different in Alaska and Hawaii and is adjusted on an annual basis.
- On Line 5 enter your total household income as a percentage of the FPL.
- If the total household income is between 100% and 400%, check NO on Line 6.
- Locate your applicable figure on Line 7 (check chart on the instructions).
- On Lines 8a and 8b, enter the annual contribution and monthly contribution amount.
Part II: Premium Tax Credit Claim and Reconciliation of Advance Payment of Premium Tax Credit
This section allows you to claim the credit or reconcile any advanced payments you received. To allocate policy amounts with another taxpayer, you will compare the following information found on your Marketplace Statement to complete Part IV.
- Your monthly payment for health insurance
- Your yearly total amount that you paid
- Your benchmark price for health insurance
- Your applied advanced credits
- Your qualified credits
Part III: Repayment of Excess Advance Payment of the Premium Tax Credit
This section is used to determine the amount of excess Advance Premium Tax Credit (APTC) you must repay.
Part IV: Shared Policy Allocation
There are certain situations to determine if you should fill this part out, such as divorce or legal separation. A Shared Policy Allocation is for those taxpayers that are enrolled in the Marketplace with another individual that is not a part of their tax household.
Part V: Alternative Calculation for Year of Marriage
If you were married at any time during the year, complete this section to elect the alternative calculation for your year of marriage.
Click to view more information on the instructions and forms.
To find a Liberty Tax ACA Advisor at your local Liberty Tax office, call 800-673-8600 or visit www.healthcaretaxinfo.com.