Form 8962
Form 8962
Premium Tax Credit (PTC)
Every line is explained below in plain English — click any line to see what it means, who needs to fill it in, and what people commonly overlook.
Annual and Monthly Contribution Amount
- 1 Tax Family Size The number of people in your tax family for purposes of the Premium Tax Credit.
- 2a Modified AGI Your modified adjusted gross income for the Premium Tax Credit.
- 2b Dependents' Modified AGI The combined modified adjusted gross income of all dependents who are required to file a tax return.
- 3 Household Income Your total household income -- line 2a plus line 2b. This is the single number the IRS uses to determine how much Premium Tax Credit you qualify for.
- 4 Federal Poverty Line The federal poverty line amount for your tax family size.
- 5 Household Income as Percentage of Federal Poverty Line Your household income (line 3) divided by the federal poverty line (line 4), expressed as a percentage.
- 7 Applicable Figure The percentage of household income you are expected to contribute toward the cost of your benchmark health plan.
Premium Tax Credit Calculation
- 11 Annual Premium Amounts The annual totals row of the premium tax credit reconciliation table.
- 24 Total Premium Tax Credit Your total premium tax credit for the year. Add up the column (e) amounts from lines 11 through 23.
- 25 Total Advance Premium Tax Credit The total advance payments of the Premium Tax Credit made directly to your insurance company during the year.
- 26 Net Premium Tax Credit If your total premium tax credit (line 24) is more than the advance payments you received (line 25), the difference goes here.
- 27 Excess Advance Premium Tax Credit If the advance payments you received (line 25) exceed your actual premium tax credit (line 24), the difference goes here.