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How to Fill out IRS Form 8962 Correctly

Elise Williams

2024-04-18 11:56:27 • Filed to: Other IRS Forms • Proven solutions

Premium Tax Credit or PTC is a tax credit available to those people who register or whose family members register in a qualified health plan offered by Health Insurance Marketplace. You can use Form 8962 to calculate the amount of your PTC and settle it with Advance Premium Tax Credit (APTC).

Your Best Solution to Fill in IRS Form 8962

To complete Form 8962, Wondershare PDFelement - PDF Editor can be your smart form filler. You can zoom in the form for clear view and double-check. Fill the electronic form version with PDFelement is a wise way to save your time and papers. Tap the button below to download for free in a few seconds and follow the guide!

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APTC means Advance payment of the premium tax and it is used for coverage during the year to insurance provider that pays for some part or all of the premiums for the coverage of an individual in a tax family.

Instructions for How to Complete IRS Form 8962

The following step by step instruction given below will guide on how to complete the IRS Form 8962.

Step 1: You can get the IRS Form 8962 from the website of Department of the Treasury, Internal Revenue Service or you can simply download IRS Form 8962 here .

Step 2: Download the form and open it using PDFelement and start filling it.

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Step 3: At the top of the form enter the name shown on the top of your return and your social security number.

Step 4: Begin with Part I. Enter the number of exemptions from Form 1040 or Form 1040A on line 1. Enter the amounts related to modified AGI on line 2a and 2b. To get Household income add the amounts on line 2a and 2b and enter it on line 3. Select the appropriate choice and enter the value on line 4. Enter Household income as a percentage of federal poverty line on line 5. If you entered 401% on line 5, then directly proceed to line 7 other wise select yes on line 6. Find the applicable figure and enter it on line7. On line 8, enter the Annual contribution amount by following the method shown.

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Step 5: Start filling Part II. It is titled as 'Premium Tax Credit Claim and Reconciliation of Advance Payment of Premium Tax Credit'. Select the appropriate choice on line 9 and 10 and proceed to line 11.On line 11 there is a small table where you need to fill the annual totals for the empty fields under each column. There is another table below line 11; here you have to fill out the monthly amounts under each column. Enter the amounts from line 12 to 23. Below the table enter the Total premium tax credit on line 24. On line 25, enter the Advance payment of PTC by following the method given. Enter Net premium tax credit on line 26.

Step 6: Enter the amounts on Part III. It is titled as Repayment of Excess Advance Payment of the Premium Tax Credit. On line 27, enter Excess advance payment of PTC. Enter the Repayment limitation on line 28. For line 28, enter Excess advance premium tax credit repayment.

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Step 7: Start filling Part IV. Part IV is titled as Shared Policy Allocation. In this part from line 30 to 33 you have to mention all the shared policy allocations within a table. These tables have various other fields which have to be filled. Firstly, you have to enter the Policy Number on field a. Enter the SSN of other taxpayer on field b. On field c, you have to enter the Allocation start month. On field d, you have to enter the Allocation stop month. Enter the Premium Percentage on field e. For field f, enter the SLCSP Percentage. And for finally for line g, enter the Advance Payment of the PTC Percentage. Similarly you have to fill up the other shared policies. Select the appropriate choice on line 34 which applies to you.

Step 8: Go to Part V. It is titled as ‘Alternative Calculation for Year of Marriage'. On line 35, enter the all the Alternative entries for your SSN on field a, b, c and d. On line 36, enter the all the Alternative entries for your spouse's SSN on field a, b, c and d. This how you can easily fill an IRS form IRS Form 8962.

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Tips and Warnings for IRS Form 8962

Alien residents who have household income lower than the Federal Poverty line cannot avail Medicaid because of their immigration status. Under all of following circumstances combined, you can avail PTC if your income less than federal poverty line.

You or any member of your tax family got registered in a qualified health plan through a Market Plan.
The registered person is lawfully present in US and is not lawfully qualified for Medicaid.
The Market Place determines your APTC qualification for 2015 by using forecasted or projected income. If any of the information regarding your business, income etc changed, the volume of APTC paid may be significantly deviated from the amount you can take on your tax return.
Form 1095-A, i.e. Health Insurance Market Place Statement, is needed to complete Form 8962.
The Marketplace is ought to provide or send Form 1095-A to the person who filed tax mentioned in the enrollment application by January 31-2015. If they or you do not receive this form by early February, contact the marketplace.
Form 8962 is only used for health insurance coverage in a certified health plan which has been bought through Health Insurance Market Place or Exchange. Any qualified health plan which has been purchased on healthcare.gov or State Marketplace is also eligible. The eligibility for APTC is determined by the Marketplace's estimate of PTC.