IRS Form 8962 is used to reconcile Premium Tax Credits (PTCs) received through the Health Insurance Marketplace with the amount you were eligible to receive based on your final household income.
What is Form 8962?
Form 8962, Premium Tax Credit (PTC), is filed with a federal income tax return to:
Calculate the Premium Tax Credit you qualify for
Reconcile any advance Premium Tax Credits (APTCs) received during the year
Determine whether additional tax credits are owed to you or must be repaid
Individuals who receive Marketplace subsidies typically receive information needed to complete Form 8962 from the Marketplace.
Why did I receive Form 1095-A?
If you enrolled in a Marketplace health insurance plan and received Premium Tax Credits, you should receive Form 1095-A from the Marketplace.
Information from Form 1095-A is used to complete Form 8962.
How does Form 8962 affect HRA participants?
QSEHRA participants
Employees participating in a QSEHRA may need to coordinate their Premium Tax Credit eligibility with their QSEHRA benefit.
The amount of a QSEHRA benefit can affect the Premium Tax Credit an employee is eligible to receive.
ICHRA participants
Employees offered an affordable ICHRA generally are not eligible to receive Premium Tax Credits for the same months they are eligible for the ICHRA.
Why might I need to repay Premium Tax Credits?
If your actual household income is higher than estimated when you enrolled, you may have received more Premium Tax Credits than you were eligible for.
Form 8962 calculates whether:
Additional Premium Tax Credits are owed to you, or
Excess Premium Tax Credits must be repaid
Do employers complete Form 8962?
No. Form 8962 is completed by the taxpayer filing a federal income tax return.
Employers do not file Form 8962 on behalf of employees.
Where can I get help completing Form 8962?
Take Command cannot provide tax advice.
If you have questions about completing Form 8962, consult:
A tax professional
A certified public accountant (CPA)
The IRS instructions for Form 8962
Key takeaway
Form 8962 is used to reconcile Marketplace Premium Tax Credits with your actual annual income. If you received Premium Tax Credits through the Marketplace, you may need to complete Form 8962 when filing your federal tax return.
