If you received Advance Premium Tax Credit (APTC) to help pay for health insurance through the ACA Marketplace, you must file Form 8962 when you file your taxes.

This form reconciles the subsidy you received during the year with the Premium Tax Credit (PTC) you actually qualified for based on your final income. Miss this form, and you could lose your subsidies permanently.

This guide walks through Form 8962 line-by-line with real examples, common mistakes to avoid, and tips to make filing easier.

⚠️ Important: You MUST file Form 8962 if you received any APTC during the year—even $1/month. Failure to file results in:
  • Loss of future subsidy eligibility
  • Possible penalties
  • IRS correspondence and audit risk

What is Form 8962?

Form 8962 (Premium Tax Credit) is the IRS form used to:

Who must file Form 8962?

When is it due? Filed with your annual tax return (typically April 15)

What You'll Need Before You Start

Gather these documents before filling out Form 8962:

  1. Form 1095-A - Health Insurance Marketplace Statement (from Healthcare.gov or your state marketplace)
  2. Form 1040 - Your tax return (you'll need your AGI and MAGI)
  3. Household income information - W-2s, 1099s, Schedule C, etc.
  4. Household size - Number of people claimed on your tax return
✅ Where to find Form 1095-A:
  • Mailed to you by late January/early February
  • Available in your Healthcare.gov account under "My Applications & Coverage"
  • Emailed to you if you opted for electronic delivery

Form 8962 Overview: The Three Parts

Form 8962 has three main sections:

Let's walk through each section line-by-line.

Part I: Annual and Monthly Contribution Amount

This section calculates how much you're expected to contribute toward your health insurance based on your income.

Line 1 Tax family size

What to enter: The number of people on your tax return (yourself + spouse + dependents)

Example: You + spouse + 2 kids = 4

Line 2a Modified AGI

What to enter: Your Modified Adjusted Gross Income (MAGI)

Where to find it: This is typically your AGI from Form 1040, Line 11, plus certain additions (like tax-exempt interest)

Example: $48,500

💡 Self-Employed Note: If you're claiming the Self-Employed Health Insurance Deduction (SEHID), your MAGI calculation becomes complex. You must use the iterative method from IRS Publication 974 to calculate MAGI and PTC simultaneously.

Line 2b Household income as a percentage of Federal Poverty Line

What to enter: (Line 2a ÷ FPL for your family size) × 100

Example: MAGI of $48,500 ÷ FPL of $31,200 (family of 4) = 155%

Where to find FPL: HHS Federal Poverty Guidelines

Line 3 Applicable Figure

What to enter: Look up your percentage from Line 2b in the Applicable Figure Table in the Form 8962 instructions

Example: At 155% FPL, the applicable figure is 0.04 (4%)

What this means: You're expected to contribute 4% of your income toward health insurance

Line 4 Annual Contribution Amount

What to enter: Line 2a × Line 3

Example: $48,500 × 0.04 = $1,940

What this means: You're expected to pay $1,940/year toward premiums (about $162/month)

Lines 5-8 Monthly Contribution Amount

What to enter: Divide Line 4 by 12 to get your monthly expected contribution

Example: $1,940 ÷ 12 = $162/month

Note: Lines 6-8 are only used if you had a change in circumstances mid-year (marriage, divorce, moved states, etc.)

Part II: Premium Tax Credit Claim and Reconciliation of Advance Payment

This is the most detailed section. You'll complete one row (Lines 12-23) for each month you had Marketplace coverage.

📊 Real Example: March 2025 (Single Month)

Let's walk through one month using Marcus's real numbers:

  • Monthly premium: $500 (from Form 1095-A, Column A)
  • Monthly SLCSP: $600 (from Form 1095-A, Column B)
  • Monthly APTC received: $250 (from Form 1095-A, Column C)
  • Monthly contribution amount: $162 (from Line 5)

Line 11 (Columns A-F) Month-by-Month Reconciliation

What to do: You'll fill out columns A through F for each month you had coverage. Here's what goes in each column:

Column A: Monthly enrollment premiums (from Form 1095-A, Column A)

Column B: Monthly Second Lowest Cost Silver Plan (SLCSP) premium (from Form 1095-A, Column B)

Column C: Monthly contribution amount (from Line 5)

Column D: Column B minus Column C (this is your monthly PTC)

Column E: Column A or Column D, whichever is LESS (your maximum monthly credit)

Column F: Monthly APTC you received (from Form 1095-A, Column C)

📋 Marcus's March 2025 Calculation:

  • Column A: $500 (his monthly premium)
  • Column B: $600 (SLCSP)
  • Column C: $162 (expected contribution)
  • Column D: $600 - $162 = $438 (PTC he qualifies for)
  • Column E: Smaller of $500 or $438 = $438 (his actual credit)
  • Column F: $250 (APTC he received)

Result: Marcus qualified for $438 but only received $250. He's entitled to an additional $188 credit for March.

Line 24 Total Premium Tax Credit (Annual)

What to enter: Add up Column E for all 12 months

This is the total PTC you qualified for based on your actual income.

Part III: Repayment of Excess Advance Payment or Additional Credit

This section determines if you owe money back or get a refund.

Line 25 Total Advance Premium Tax Credit

What to enter: Add up Column F for all 12 months (total APTC you received)

Example: $250/month × 12 months = $3,000

Line 26 Compare Line 24 and Line 25

What to do: Compare total PTC qualified (Line 24) vs. APTC received (Line 25)

  • If Line 24 > Line 25: You received less than you qualified for → You get a refund (go to Line 27)
  • If Line 25 > Line 24: You received more than you qualified for → You owe money back (go to Line 28)

Line 27 Net Premium Tax Credit (Refund)

What to enter: Line 24 - Line 25 (if Line 24 is larger)

This amount goes to Form 1040, Schedule 3, Line 9 as an additional credit (refund)

Line 28 Excess Advance Premium Tax Credit (Repayment)

What to enter: Line 25 - Line 24 (if Line 25 is larger)

But wait—there might be a repayment cap!

✅ Repayment Caps (2026 Tax Year):

If your income is below 400% of the Federal Poverty Level, your repayment is capped:

  • Under 200% FPL: $350 (single) / $700 (married)
  • 200-300% FPL: $900 (single) / $1,800 (married)
  • 300-400% FPL: $1,500 (single) / $3,000 (married)
  • Over 400% FPL: NO CAP (you owe the full excess)

Line 29 Final Repayment Amount

What to enter: The smaller of Line 28 or your repayment cap

This amount goes to Form 1040, Schedule 2, Line 2 as additional tax owed

Complete Example: Sarah's Form 8962

📝 Sarah's Situation:

  • Single, no dependents (household size: 1)
  • MAGI: $35,000
  • Monthly premium: $400
  • Monthly SLCSP: $500
  • APTC received: $300/month ($3,600 annual)
  • Coverage: All 12 months of 2025

Part I - Sarah's Numbers:

  • Line 1: 1 (household size)
  • Line 2a: $35,000 (MAGI)
  • Line 2b: 232% of FPL ($35,000 ÷ $15,060)
  • Line 3: 0.06 (applicable figure for 232% FPL)
  • Line 4: $35,000 × 0.06 = $2,100 (annual contribution)
  • Line 5: $2,100 ÷ 12 = $175/month

Part II - One Month Example (March):

  • Column A: $400 (premium)
  • Column B: $500 (SLCSP)
  • Column C: $175 (contribution)
  • Column D: $500 - $175 = $325 (PTC)
  • Column E: $325 (smaller of $400 or $325)
  • Column F: $300 (APTC received)

Repeat for all 12 months, then:

  • Line 24: $325 × 12 = $3,900 (total PTC qualified)

Part III - Reconciliation:

  • Line 25: $3,600 (APTC received)
  • Compare: $3,900 (qualified) > $3,600 (received)
  • Line 27: $3,900 - $3,600 = $300 refund

✅ Result: Sarah gets a $300 tax refund because she received less APTC than she qualified for.

Common Form 8962 Mistakes

❌ Mistake #1: Not Filing Form 8962 at All

If you received any APTC, you MUST file Form 8962—even if your income didn't change. Failure to file results in loss of future subsidy eligibility.

Cost: Loss of all future subsidies + penalties

❌ Mistake #2: Using Wrong SLCSP Premium

Your SLCSP must come from Form 1095-A, Column B. Don't use your actual premium or estimate. The SLCSP is specific to your age, location, and household size.

Cost: Incorrect PTC calculation → repayment or lost refund

❌ Mistake #3: Forgetting the Iterative Method (Self-Employed)

If you're self-employed claiming SEHID, you must use the IRS Publication 974 iterative method to calculate MAGI and PTC together. Linear calculations produce wrong results.

Cost: $500-$2,000 in overpaid taxes or APTC repayment

❌ Mistake #4: Ignoring Repayment Caps

If you owe APTC back, check the repayment caps based on your income. You might owe less than the full excess.

Cost: Overpaying the IRS when you have a cap

❌ Mistake #5: Filing Before You Have Form 1095-A

You cannot complete Form 8962 without Form 1095-A. Wait until you receive it (usually by early February).

Cost: Incorrect filing → amended return required

Special Situations

What if I had coverage for only part of the year?

Only complete rows for the months you had Marketplace coverage. Leave other months blank. Your annual PTC (Line 24) will be prorated.

What if my household size changed mid-year?

If you got married, divorced, had a child, or your dependents changed, you may need to complete Alternative Calculation worksheets. See Form 8962 instructions Part IV.

What if I'm married filing separately?

Special allocation rules apply. You and your spouse must agree on how to allocate SLCSP and APTC. See Form 8962 instructions for allocation worksheet.

What if I moved to a different state?

Your SLCSP changes when you move. Form 1095-A will show different SLCSP amounts for different months. Use the correct SLCSP for each month in Part II.

Get Your Numbers Right Before Filing

Calculate your Premium Tax Credit and SEHID using the IRS-compliant iterative method—before you file Form 8962.

Calculate My PTC →

Form 8962 Filing Checklist

✅ Before You File:
  1. ✓ Received Form 1095-A from Healthcare.gov
  2. ✓ Completed Form 1040 through Line 11 (AGI)
  3. ✓ Calculated final MAGI (if self-employed, used iterative method)
  4. ✓ Determined household size and Federal Poverty Level
  5. ✓ Completed all three parts of Form 8962
  6. ✓ Transferred amounts to Form 1040 Schedule 2 or 3
  7. ✓ Attached Form 8962 to your tax return
  8. ✓ Kept copies of Form 1095-A and Form 8962 for your records

Where to Get Help

If you're stuck or need assistance with Form 8962:

Frequently Asked Questions

Do I file Form 8962 if I didn't receive any APTC?

Only if you're claiming Premium Tax Credit for the first time. If you paid full price all year and aren't claiming PTC, you don't need Form 8962.

What if I can't find my Form 1095-A?

Log into your Healthcare.gov account and download it from the "Documents" section. You can also call the Marketplace Call Center at 1-800-318-2596.

Can I file my taxes before February if I don't have Form 1095-A yet?

No. You must wait until you receive Form 1095-A (usually by early February). Filing without it will result in errors.

What if my Form 1095-A has errors?

Contact Healthcare.gov immediately. They will issue a corrected Form 1095-A. Do not file Form 8962 with incorrect information.

Does Form 8962 trigger an audit?

No, filing Form 8962 doesn't increase audit risk. However, not filing Form 8962 when you received APTC will definitely trigger IRS correspondence.

The Bottom Line

Form 8962 might look intimidating, but it's a straightforward reconciliation once you understand what each line means.

Key takeaways:

Don't let Form 8962 stress you out. With the right information and the correct calculations, you can file accurately and avoid surprises.

✅ Pro Tip: Calculate your Premium Tax Credit and SEHID using the correct IRS method BEFORE you file Form 8962. This ensures your numbers are accurate and audit-ready from the start.

Calculate your numbers here