IRS Form 8962 is titled Premium Tax Credit (PTC). It is used to calculate the Premium Tax Credit and, when applicable, reconcile advance payments made during the year with the amount determined through the tax return.
Why reconciliation may be needed
Advance payments are typically calculated from application information and an estimate. A household's final tax information can differ from the estimate, so the tax return may calculate a different credit or identify an amount that must be repaid under applicable rules.
Documents to gather
- Form 1095-A for the relevant coverage year.
- The current-year IRS instructions for Form 8962.
- Other tax information needed for the household's return.
Do not invent missing figures or assume the same outcome applies to everyone. If Form 1095-A contains an error, contact the Marketplace about a correction. For individualized tax questions, consult a qualified tax professional.
Official resources: IRS Form 8962 and IRS ACA resources.