Understanding IRS Form 8962: Premium Tax Credit (PTC)
Form 8962 reconciles advance payments of the Premium Tax Credit for health insurance purchased through the Health Insurance Marketplace.
What Is Form 8962?
It calculates your actual premium tax credit based on your income and household size, comparing it to what was paid in advance.
Who Uses Form 8962?
- Taxpayers who received Marketplace health insurance and advance premium tax credits.
Why Is It Important?
- Ensures you receive the correct subsidy amount.
- Prevents owing money if advance payments exceeded your eligible credit.
How to Use Form 8962
- Report your actual income and family size.
- Calculate the correct credit or repayment amount.
Professional Tips
- Keep Marketplace Form 1095-A handy.
- Report any income changes promptly to avoid surprises at tax time.
Related Forms and Topics
- Form 1095-A
- Form 1040
- Health Insurance Tax Credits
Call to Action
Used the Marketplace? KARME Tax Services helps you accurately file Form 8962 and maximize your tax benefits.
Contact KARME today for health insurance tax assistance.