What Is IRS Form 8962: Premium Tax Credit?

If you elected to buy health insurance through the government's Health Insurance Marketplace and received advance payments of the P𒆙remium Tax Credit, you'll🐟 need to file Form 8962 with your tax return.

In some cases, the form will show that you are due a 澳洲幸运5官方开奖结果体彩网:tax credit. In others, it may indicate that you owe money.

Who Should File Form 8962?

Anyone who received advance payments of t💜he Premium Tax Credit through the Health Insurance Marketplace during the tax year should include a Form 8962 when they file their annual federal income tax return.

If you bought your health insurance coverage through your employer or purchased it on your own from an insurance company outside of the Health Insurance Marketplace, you don't need to file the form.

What Is Form 8962 Used for?

When someone enrolls in the government's Health Insurance Marketplace to buy insurance, they can apply for 澳洲幸运5官方开奖结果体彩网:advanced premium tax credits (APT🌳C) to help offset the monthly premiums they have to pay. These credits are paid directly to the plan provider, reducing the individual's out-of-pocket costs.

If you had coverage through the Marketplace, you should receive a 澳洲幸运5官方开奖结果体彩网:Form 1095-A at the end of the year, showing t🔯he advanced premium credits that were paid on your behalf each month.

You can then use that information to fill out Form 8962 and calculate whether the advanced credits were higher or lower than the amount you were entitled to, bas♌ed on your income for the year. If the advanced credits were excessive, you will need to make up the difference by paying the government when you file your taxes. If, on the other hand, those credits fell short, you will be due a tax credit.

If you receive a tax credit, it will reduce the total tax you owe for the year or increase the amount of your tax 𒆙refund.

If you paid your insurance ꦇpremiums entirely o🧔ut of pocket throughout the year, you can use Form 8962 to claim a tax credit if you are due one.

How to Read and Fill Out Form 8962

All pages of Form 8962 are available .

Form 8962 asks a series of questions about your income and how much ⛄you paid for 🌺health insurance.

Your income information will be based on your 澳洲幸运5官方开奖结果体彩网:Form 1040 federal income tax return for the year, so you will need to prepare that form first. In addition, Form 8962 asks questions about your income as a percentage of the federal poverty line. You can obtain that information in the Instructions for Form 8962, available on the IRS website.

The form next asks for a month-by-month rundown✃ of how much you paid for insurance and how much assistance you received in advanced credits. That information can be found on your Form 1095-A.

🌱Based on all of that data, you will be able to calculate whether you owe additional money or have a tax credit coming 𒁏to you.

Where Do I Get Form 8962?

You can obtain a copy of Form 8962 and line-by-line instructions for filling it out on the IRS website. If you're using tax software to prepare your return, it should guide you through the process and generate t🐠he form.

The Bottom Line

If you (or a member of your family) received advance payments of the Premium Tax Credit through the Health Insurance Marketplace during the year, you will need to include a Form 8962 with your federal tax return. If you fail to do so, you may not be eligible for advanced tax credit payments in the future.