Completing Form 8962 Premium Tax Credit in ProSeries

Form 8962 is used to figure the amount of Premium Tax Credit and reconcile it with any advanced premium tax credit paid. This form is only used by taxpayers who purchased a health plan through the Health Insurance Marketplace, including healthcare.gov.

For tax years 2023-2025:

Taxpayers with a household income that exceeds 400% of the federal poverty line for their family size may be allowed a PTC. For more information, click here.

To complete Form 8962:

You'll need Form 1095-A, Health Insurance Marketplace Statement, to complete Form 8962. Under certain circumstances, the marketplace will provide Form 1095-A to one taxpayer, but another taxpayer will also need the information from that form to complete Form 8962. The recipient for Form 1095-A should provide a copy to the other taxpayers as needed.

1. Part 1, Lines 1 through 8b:
   Most of the lines in Part 1 are calculated automatically from other parts of the return and from the tables found in the Form 8962 instructions. You may need to enter the clients dependent's income on line 2 before completing this form. This is because "Household income" includes the income from all members of the "Tax Family"
2. Part 2, Lines 9 through 23:
   If your client shared a policy with another taxpayer or was married during the year, please review the Table 3 and Table 4 questions in the IRS instructions to determine if additional calculations are needed. The information appearing in lines 11 (annual) or 12 through 23 (monthly), will be entered from Form 1095-A. Note: If more than one Form 1095-A was received for a single state, enter the amount from one for Line 11, Column B.
3. Part 2, Lines 24 through 26:
   This section calculates the net premium tax credit (if any). If the client received more APTC than the calculated (allowed) PTC, the difference is entered on line 26 and Form 1040, line 69. This means the calculated PTC is greater than the APTC received.
4. Part 3, Lines 27 through 29:
   This section calculates the excess advance payment of the premium tax credit. Note that line 28 applies a limit from a table in the IRS instructions. Depending on the household income percentage that is reported on line 5, that repayment may be limited. If income excess 400% of FPL, then all of the APTC must be repaid. See the IRS instructions for more information. The excess advance premium tax credit repayment will also appear on Form 1040, line 46.
5. Part 4, Lines 30 through 34:
   Use this section to report shared policy allocations. Review the IRS instructions for more information about how and when to complete this section.
6. Part 5, Lines 35 through 36:
   Alternative calculation for the year of marriage. Complete part 5 to elect the alternative calculation for pre-marriage months. Use the tables in the IRS instructions to complete this section.

 Part 2 Rounding - The monthly totals will be rounded to whole dollars for each month.  This may cause a rounding difference of a few dollars when you look at the annual total.

Why is the tax year 2021 Form 8962, line 5 showing 133%?

If your client (or their spouse, if married filing jointly) received unemployment compensation for any week of 2021, their household income for purposes of this form is capped at 133%. See the Form 8962 instructions for more information.

Related topics:

• Form 8962 Instructions