IRS 8962 2016 PDF Template

[toc] For people who enroll in qualifying health plans, or family members of people who do, there may be a premium tax credit available. The credit helps to reduce the taxes you owe, give you a tax refund, or increase the tax refund amount you originally have. To file for a premium tax credit, you first need to file Form 8962, and then receive the credit on your tax return.

This form is used to calculate what your premium tax credit amount is, otherwise known as your PTC amount. You can also use the form to reconcile the credit with an advance payment of the tax credit. If you or a family member were enrolled in a marketplace plan for health insurance, your monthly premium might be paid in an advance credit to your insurance company.

Premium tax credits are only available for people who are enrolled in a health plan that qualifies. This means that the plan must have been purchased through a Marketplace, otherwise known as an Exchange. If you or one of your family members enrolled in healthcare coverage through the Marketplace, you should have gotten a copy of Form 1095-A.

This form is the Health Insurance Marketplace Statement. This statement explains how many months you’re covered, and whether any advance tax credit was paid. If your Form 1095-A shows that there was APTC paid for your family or your coverage, you are legally required to file a Form 8962.

This form is an important part of the tax return of qualifying individuals. People who have a health insurance plan through the Marketplace are the only ones who need to worry about this form. They will use this form to determine what amount they have for a Premium Tax Credit. Additionally, if any advance tax credit was paid to their insurance company, they will need to use this form. Advance tax credit information can be found on the 1095-A form that Marketplace-enrolled individuals receive.

The following individuals have a legal requirement to file Form 8962:

People who are taking a premium tax credit

People whose insurance companies were paid an advance premium tax credit

Premium tax credits can be claimed by the following people:

Individuals who were personally enrolled in a health plan or whose family members were enrolled in a health plan that the Marketplace offered

Individuals who did not meet the eligibility requirements for the minimum essential coverage

Individuals who paid all enrollment premiums that they were responsible for before they filed their tax return

Individuals who are applicable to file a tax return in 2016

This form should be used for a person’s 2016 tax filing, whether they’re filing a tax return or making tax payments. It’s important that people report any changes to their circumstances when they re-enroll in their healthcare coverage. Changes during the year should be reported even if the person is not in the middle of the enrollment process.

The following types of changes should be reported to the Marketplace:

Changes to your overall household income

Moving out of your home and to another address

Losing or gaining eligibility for other types of healthcare coverage

Losing employment, gaining employment, or having any other significant changes to your employment status

Family members being born or adopted

Marriages and divorces

Any other changes that affect the overall composition of your family

The consequences vary depending on whether you’re required to file or not. For people required to file the form, they may be subject to fees from the IRS. For people who are not required to file, they will not be able to claim any amount of premium tax credit.

Part I refers to the monthly and annual contribution amount you have. You should record the size of your tax family by entering whatever number of exemptions you can claim. You’ll also need to give your household income and the federal poverty line for your family’s size. Calculate the percentage of the federal poverty line that your household income represents and record it on Question 5.

If Question 5’s amount was 401%, you do not meet the eligibility requirements to have a premium tax credit. If the credit was taken out of your insurance payments in advance, you’ll need to get in contact with the IRS to set up a repayment plan.

You will need to calculate the amount that you contribute annually, as well as your monthly contribution amount. In Part II, you’ll answer questions to determine whether you can claim the premium tax credit or reconcile any advance payments made.

You’ll calculate the monthly and annual totals that you spend on premiums. These should be noted in each of the relevant lines of the provided table. Using these amounts, you’ll calculate your premium tax credit amount.

Part III regards repayment of any excessive advance payments made. If you were given more money in advance payments than you were eligible for, you’ll need to complete this section.

Part IV is where you’ll record the allocation of your policy amounts. You will need to write the policy number, the SSN of the other involved taxpayer, and the beginning and ending months that the allocation took place.

Part V is meant for people who have gotten married within the past tax year. They may be eligible for an alternate calculation.[pdf-embedder url=”https://cdn-prod-pdfsimpli-wpcontent.azureedge.net/pdfseoforms/pdf-20180219t134432z-001/pdf/irs-form-2159.pdf”]