Article: 50080

Form 8962

Form 8962 is an IRS tax form used to calculate the Premium Tax Credit (PTC) and to reconcile it with any Advance Premium Tax Credit (APTC) you may have received during the year.

Premium Tax Credit (PTC)

The Premium Tax Credit (PTC) is a tax credit available to eligible individuals and families who purchase health insurance through the Health Insurance Marketplace. This credit helps reduce the cost of monthly premiums by:

• Lowering the amount of tax owed,
• Increasing the amount of your tax refund, or
• Directly providing a refund if no tax is owed.

To claim the PTC, you must file Form 8962 with your federal tax return. Eligibility and the amount of the credit are based on your household income and family size relative to the federal poverty level.

Advance Payment of the Premium Tax Credit (APTC)

Advance Premium Tax Credit (APTC) is a payment sent directly to your insurance provider throughout the year. It subsidizes your health insurance premiums based on estimated income and household details provided to the Marketplace.

• APTC is based on projections made during your Marketplace application.
• You must file Form 8962 if APTC was paid on your behalf, to reconcile the estimated credit with your actual eligibility.
• If APTC > PTC: You may have to repay the excess (subject to limits).
• If APTC < PTC: You may receive the difference as a refundable credit.

Review and Report Form 8962

Form 8962 is automatically generated based on your responses in the health care interview section of your tax filing software.

1. 1. Go to the File section in the left navigation pane.
   2. Select Yes, I would like to create a preview of my return.
   3. Scroll through the generated PDF to locate Form 8962.
   4. Review the form thoroughly.

If any information is missing or incorrect:

1. Return to the health care interview section.
2. Update your responses using the details from Form 1095-A.