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Download your fillable IRS Form 8962 in  PDF
IRS Form 8962

The IRS Form 8962 is supposed to be created when an individual needs to calculate their PTC and bring it into correspondence with the APTC. The PTC, or Premium Tax Credit, is provided for those persons who fit in a qualified health plan offered through a Marketplace. The APTC stands for Advance Premium Tax Credit and is a type of payment given to one’s insurance provider to pay off their premiums for a qualified health plan.

To file the PTC, you should:

  • Have low or moderate earnings
  • Not file a Married Separately tax return.
  • Not be claimed dependent by another individual.
  • Put yourself into the official list for coverage through a Marketplace.
  • Prove that your employer-sponsored plan will not cover relevant health services.
  • Not be officially permitted to get coverage through a governmental health care program.
  • Provide a part of premiums not covered by APTC.

Errors and inaccuracy may result in having to pay an excessive tax amount or delay in processing and refund of your return or compensation. The document is relatively complicated, and you may wish to look for legal assistance. You are insistently required to study the instructions provided on the official IRS website to avoid making mistakes.

Some of the terms introduced in the paper are the following:

  • Modified AGI — the AGI on your tax return, along with additional income that is tax-exempt
  • Qualified Health Plan — a policy obtained through a Marketplace
  • Married Taxpayers — Individuals who are espoused and obliged to file a joint return
  • Household Income — the modified AGI of all the family members who are supposed to file an income tax return
  • Coverage Family — all individuals who enroll in a qualified health plan and are not eligible for MEC

If your family situation (family size, income, or other circumstances) becomes different during the tax year, make sure to report about that as soon as possible so that the Marketplace can update the information and recount your PCT.

Other IRS Forms for Individuals

We offer you to read what other IRS forms you might need in your specific tax situation.


Filling Out the Form

You may opt for filling out the document either electronically or on paper. You are recommended to use form-building software to obtain a personalized IRS Form 8962.

  • Input Essential Information

step 1.1 input essential information - filling out an irs form 8962
Begin completing the lines with your full name, reproduced exactly as in the tax return. Those individuals who are filing together with their spouse should enter the name that appears on their tax return.

The same requirement is relevant for your SS number that must be indicated thereafter.

step 1.2 indicate ss number - filling out an irs form 8962
Notice: if you have been victimized by domestic violence or are experiencing spousal abandonment, you may wish to file a joint return under special conditions. Check the slot to indicate you qualify for benefits.

  • Calculate Your Annual and Monthly Contribution Amount

step 2 calculate your annual and monthly contribution amount - filling out an irs form 8962
Insert the number of persons in your family who are using the tax return first, including the dependents. Secondly, indicate your and the dependents’ adjusted gross income separately, and provide the summarized number.

After that, check the box determining the state where you reside (which will automatically provide information about your state poverty line) and compute your household income as a percentage of the federal poverty line.

If the number you have entered does not appear to be bigger than 400%, proceed to write down the applicable figure (depending on the percentage you have mentioned on Line 5 in the form). Finally, you will be required to count the eventual contribution amounts, rounded to the nearest even dollar.

  • Claim the PTC and Reconciliation of the APTC

step 3.1 claim the ptc and reconciliation of the aptc - filling out an irs form 8962
Line 9 is dedicated to determining whether you need to allocate policy amounts with another individual or wish to use the alternative calculation for the year of marriage, or neither of these.

step 3.2 provide information about your monthly calculations - filling out an irs form 8962
Depending on whether you are able to represent only annual PTC or are required to provide information about your monthly calculations, check the “yes” or “no” box, complete the related lines, and enter the total PTC followed by the advance payment. If the first number is greater than the second, calculate the difference and insert the result on the Net PTC line.

  • Indicate the Repayment of the APTC Info

step 4 indicate the repayment of the aptc info - filling out an irs form 8962
In this part, you will have to indicate the sum of your APTC compensation. If the number you have provided on Line 25 appears to be greater than the one on Line 24, calculate the subtracted number and fill it in on Line 27.

Consider that the excess APTC may be limited, and check the Instructions to find out whether repayment limitations apply to you or not. If you have completed both Lines 28 and 29, provide the smaller number of these two on the Excess APTC repayment line.

  • Allocate the Policy Amounts

step 5 allocate the policy amounts - filling out an irs form 8962
Before you proceed to complete Part 4, recheck whether you are required to do it. If yes, choose the allocations you are about to fill out. The situations involve the following:

  • divorce or official break-up in 2020
  • filing separate returns by a married couple at the end of the tax year
  • no APTC, and having the policy divided between two tax families.

If you have entered information about all the situations mentioned, it is required to count the total sum and report it in the form. Otherwise, check the “No” box.

  • Complete the Alternative Calculation for the Prenuptial Months

step 6 complete the alternative calculation for the prenuptial months - filling out an irs form 8962
Those taxpayers who have opted for completing Part 5 should provide their and the spouse’s SSNs, alternative family size, monthly contribution amount, alternative start month, and alternative stop month. The start month of you or your spouse should match the first month on Line 12.