The Premium Tax Credit and Your TaxesDid you receive a premium tax credit to help pay for health insurance in 2014? If you said “yes,” then you’ll need to file a 2014 tax return. Even if you’ve never had to file a tax return before, you will need to file one this tax season. So, here’s what you need to do.

Anyone who received a tax credit must fill out a new tax form—Form 8962. To complete Form 8962, you will need to know:    


  1. Modified Adjusted Gross Income (MAGI). To get your MAGI for you and any dependents, add your AGI (Line 38 of your 1040), PLUS any non-taxable Social-Security benefits (Lines 20a-20b of your 1040), PLUS tax-exempt interest (Line 8b of your 1040), PLUS excluded foreign income (Lines 45 and 50 from Form 2555).  
  2. Federal Poverty Level: The federal poverty level is the minimum amount a household needs to afford basic costs of living such as food, shelter, clothing, and transportation. It’s set by the Department of Health and Human Services each year. In 2014, for example, a family of four was above the federal poverty level if the MAGI was above $23,850. 
  3. 2014 Federal Poverty Level

    Household Size

    Federal Poverty Line









    For each additional person, add $4,060

  4. Premium Tax Credit. You should have received Form 1095-A Health Insurance Marketplace Statement earlier this year. It details the amount you paid in insurance premiums and any Premium Tax Credit you received in advance.

Once you’ve gathered all this information, you can complete Form 8962. When you do, you may find that you were given a smaller Premium Tax Credit than you deserved. If so, you may get a tax refund. If you were given a larger Premium Tax Credit than you were eligible for, and you received the credit in advance, you will have to repay the government. This process is called “Reconciliation.” The good news: The amount you have to repay is limited based on your income. So, if your income is below $22,980, you can’t owe more than $300.


2014 Repayment Caps for Individuals


Repayment Cap

Below $22,980






$45,960 or more

Must repay in full

Note: Repayment Caps are higher for families.


New Obamacare tax rules can be a bit complex, so it may be wise to visit a tax preparer.

For more Obamacare facts, visit or call the ACA hotline at 1-800-673-8600.


-- By Alice Robeson