What this line means
The number of people in your tax family for purposes of the Premium Tax Credit. Count yourself, your spouse if filing jointly, and every dependent you claim who is required to have minimum essential health coverage. This number sets the federal poverty line amount used to determine your credit.
Does this apply to you?
- You are filing Form 8962 to claim or reconcile the Premium Tax Credit
- You enrolled in a Marketplace health insurance plan and need to determine your household size
- You have dependents who are required to have health coverage
- You and your spouse file jointly and both need coverage counted
Easy to overlook
Dependents not enrolled in your Marketplace plan still count Your tax family size includes all dependents you claim on your return who must have minimum essential coverage — even if they get coverage through Medicaid, an employer plan, or a separate Marketplace policy. People often count only the family members listed on their Form 1095-A, but line 1 counts everyone in the tax family, not just those on your Marketplace plan. 1 IRS Form 8962 Instructions — Line 1
A change in family size mid-year requires monthly calculations If you gained or lost a dependent during the year — through birth, adoption, divorce, or a child aging out — your tax family size changed. When that happens, you cannot use a single annual figure. You must complete the monthly columns (lines 12 through 23) to reflect the different family sizes in different months. 2 IRS Publication 974 — Premium Tax Credit
Watch out for this
Do not count individuals who are not your dependents. A roommate or partner who is not your spouse and not your dependent does not increase your tax family size, even if they are on your Marketplace plan. Inflating this number raises your federal poverty line amount, which makes your income appear lower as a percentage of the poverty line — and that can trigger an audit or repayment when the IRS compares your return to your Marketplace application.
Footnotes
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IRS Form 8962 Instructions, Line 1. https://www.irs.gov/instructions/i8962 ↩
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IRS Publication 974, Premium Tax Credit, Tax Family Size. https://www.irs.gov/pub/irs-pdf/p974.pdf ↩