You will need the notice provided by your employer and the permitted benefit for self-only coverage to complete Worksheet N. His required contribution for self-only coverage was $3,400, and Hal enrolled in the coverage. His household income for 2024 was $33,000, which means that his required contribution was more than 8.39% of his household income. Even though the employer coverage was not affordable, Hal cannot get the PTC for coverage in a qualified health plan because he enrolled in the employer coverage. However, this exception does not apply if you, or the individual you are including in your tax family, with intentional or reckless disregard for the facts, provided incorrect information to the Marketplace for the year of coverage.

Therefore, 33% of the enrollment premium, the applicable SLCSP premiums, and APTC are allocated to Stephanie and 67% of these amounts are allocated to Keith. The allocation is only for the months Keith and Stephanie were married. You are not allowed a monthly credit amount for any month that the enrollment premiums for the month were not paid by the due date of your return (not including extensions). If a -0- appears on any of lines 21 through 32, column A, of Form 1095-A, you may not have paid your enrollment premiums for the month by the due date of the premium. If so, and the premiums for the month are not paid by the due date of your return (not including extensions), enter -0- for the month on the appropriate line on Form 8962, column (a).

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Tim’s required contribution of $2,400 is 8% of his 2024 household income. Because 8% is not more than 8.39% (the required contribution percentage for the plan year beginning in 2024), Tim’s employer coverage for July 1, 2024, through December 31, 2024, is considered affordable and he is not eligible for the PTC for those months. If you received advance premium tax credit during the year but don’t file Form 8962, the IRS can delay or reject your tax return. Worse, they could make you repay the entire amount they sent to your insurance company.

If the notice provided the permitted benefit amount just for the months you were provided the QSEHRA, then enter that amount on line 6. If the notice provided the self-only coverage permitted benefit for the entire year, figure the amount to enter on line 6 as follows. For purposes of the PTC, modified AGI is the AGI on your tax return plus certain income that is not subject to tax (foreign earned income, tax-exempt interest, and the portion of social security benefits that premium tax credit, form 8962 is not taxable).

Taxpayer Bill of Rights: Navigating IRS Protections

A health flex contribution is an employer contribution to a cafeteria plan that may be used only to pay for medical care (and not taken as cash or other taxable benefits) and is available for use toward the purchase of MEC. Cafeteria plan contributions that may be used for expenses other than medical care are not health flex contributions and so do not reduce your required contribution. Employers may offer you alternative or additional HRA coverage.

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According to Table 3, Gary and Jim use the rules under Allocation Situation 3, earlier. Figure the total PTC on Form 8962 using the AGI, modified AGI, and household income you determined in Step 1. Enter the modified AGI and household income from Step 1 on the Form 8962. When figuring the PTC, use all enrollment premiums for qualified health plans in which you or any individual in your tax family enrolled. When figuring the PTC, use all enrollment premiums for qualified health plans in which you or an individual in your tax family enrolled.

Form 8962 Instructions

If APTC is being paid for coverage in a qualified health plan and you become eligible for government-sponsored coverage that is effective retroactively (such as Medicaid or CHIP), you will not retroactively lose the PTC for your coverage. You can get the PTC for your coverage until the first day of the first calendar month after you are approved for the government coverage. The facts are the same as in Example 1, except that Ellen did not apply for the Medicare coverage by September 30. Ellen is considered eligible for government-sponsored coverage beginning on October 1. She can get the PTC for her coverage for January through September.

Form 1095-A provides the necessary details about health coverage, including premium amounts and benchmark plan information. Determining household income is essential for accurately completing Form 8962, as it directly affects the amount of premium tax credits a taxpayer can claim. Household income includes the modified adjusted gross income (MAGI) of the taxpayer, their spouse, and any dependents required to file a tax return. MAGI is calculated by adding back certain deductions, such as non-taxable Social Security benefits, tax-exempt interest, and excluded foreign income, to the adjusted gross income (AGI).

• Bret and Paulette must allocate the amounts from Form 1095-A for the months of January through December on their tax returns using the instructions in Table 3.
• The preliminary steps in determining whether they may be eligible are to complete Table 4 and Worksheet 3 in the Form 8962 instructions.
• Learn how to accurately complete Form 8962 to claim premium tax credits, ensuring compliance and optimizing your tax return process.
• The requirement to increase tax liability by all or a portion of excess advance credit payments does not apply for tax year 2020.
• Comprehensive Guide to Forms 1095-A, 1095-B, and 1095-C When it comes to health coverage reporting,…
• Filing on time helps you avoid potential penalties and ensures that your Premium Tax Credit is accurately reconciled with your tax obligations.

This form reports information related to claiming an offset to the cost of purchasing health insurance through the national Health Insurance Marketplace. Check our One Big Beautiful Bill article for more information. If in 2021 you paid back all of the unemployment compensation you received in 2021, you did not receive unemployment compensation for a week beginning in 2021. But if you did not pay back all of the 2021 unemployment compensation until 2022, you received unemployment compensation for a week beginning in 2021 and are eligible to check the box on line A, above Part I of 2021 Form 8962. Yes, if you meet the other eligibility requirements (see Q5), you are eligible for a Premium Tax Credit for 2021, because you are treated as an applicable taxpayer.

• From August 1 through December 31, 2024, Paulette, Quentin, and Quentin’s two dependent children were enrolled together in a different qualified health plan.
• The Marketplace sends copies to individuals to allow them to accurately file a tax return taking the PTC and reconciling APTC.
• Affordability of the employer coverage for these family members is now based on the portion of the annual premium the employee must pay for coverage of the employee and these other family members.
• The denominator of the fraction is the total of (a) the premium for the applicable SLCSP for your coverage family, and (b) the premium for the applicable SLCSP for the individuals who are not in your coverage family.

Master Form 8832: Your Complete Entity Tax Guide

In other words, your coverage family is the same during the reference month as for a month the not lawfully present family member was enrolled, except the not lawfully present family member is not included in your coverage family. Enter on Form 8962, Part II, column (b), the applicable SLCSP premium for the reference month as the applicable SLCSP premium for the months the not lawfully present family member was enrolled. If you or a member of your family is not lawfully present and was enrolled in a qualified health plan with family members who are lawfully present for 1 or more months of the year, you may take the PTC only for the coverage of the lawfully present family members. You must determine how much APTC was paid for the coverage of a not lawfully present family member. The PTC is not allowed for the coverage of an individual who is not lawfully present in the United States. All APTC paid for an individual not lawfully present who enrolls in a qualified health plan must be figured.