How to Fill Out Form 8962 Correctly in 2024

While preparing your taxes, you might need to fill out IRS Form 8962. It is used to figure the amount of your Premium Tax Credit and reconcile it with Advanced Payment of the Premium Tax Credit, aiming to help people recoup some money they spent on health insurance purchased through the Health Insurance Marketplace.

However, if you are new to it, you may get lost while filling it out. If you are, don't fret, as you can find a step-by-step tutorial to fill out IRS form 8962. Plus, this post also talks about some items you need to know before filling. Now, let's jump into it.

• What Is Advanced Premium Tax Credit (APTC)
• Who Must File Form 8962
• Tips Before You Fill Out Form 8962
• How to Fill Out Form 8962 Correctly★★★★★

All You Need to Know Before Filling Out Form 8962

As we said before, if you are new to IRS Form 8962, you'd better learn more information before filing to avoid mistakes. And this part will tell you everything about Form 8962.

What Is Advanced Premium Tax Credit (APTC)

APTC is a federal tax credit for individuals. It can reduce the health insurance premiums you pay monthly when purchasing coverage through the Marketplace. When you sign up to enroll in a qualified health plan on the Health Insurance Marketplace, the system determines whether you are eligible for a subsidy. If the APTC was paid for you or anyone in your tax family, you have to file Form 8962 to reconcile the APTC with your PTC.

If the APTC is higher than your PTC, you have excess APTC, and you need to repay the excess to certain limitations. If less, you can get a credit for the difference, which reduces your tax payment or increase you refund.

Who Must File Form 8962

Below are some items you can refer to. If any of the following apply to you, you have to file Form 8962 with your income tax return, including Form 1040, 1040-SR, or 1040-NR:

• You are taking the PTC
• APTC was paid for you or others in your tax family
• APTC was paid for someone you told the Marketplace would be in your tax family, and neither you nor anyone else included that individual in a tax family

If any of the items above apply to you, you must file an income tax return and attach Form 8962.

Tips Before You Fill Out Form 8962 

• You or anyone in your family must be enrolled in a health plan covered by the Market Plan
• Form 1095-A is necessary
• The registered person in lawfully present in the US
• Form 8962 is sent by the marketplace. If you haven't received it by early February, you need to contact them

How to Fill Out Form 8962 Correctly

Compared to the paper Form 8962, filling the electronic 8962 form version is much easier and more convenient because you can zoom in on the form for a clear view, or fix errors in the original version at any time. However, to complete the electronic form, you need to find an excellent PDF form filler first, like EaseUS PDF Editor. 

This PDF editing software can assist you in dealing with all PDF problems, including filling out PDF forms. Let's take the Form function as an example: you can easily create a checkbox, push-button, add text filed, and even import or export data from the current PDF files. Actually, it can do a lot more than that. You can add a signature to the PDF documents, insert a watermark and add passwords to the file according to your needs. Now, check out how it works for filling IRS Form 8962:

Step 1. Download this PDF form filler by hitting the below button.

Step 2. Enter your name and your social security number on the top of the 8962 form.

Step 3. Fill out Part 1 - Annual and Monthly Contribution Amount

Here you need to enter the annual and monthly contributions based on family size, household income, and adjusted gross income. 

Step 4. Fill out Part 2 - Premium Tax Credit Claim and Reconciliation of Advance Payment of Premium Tax Credit

In Part II, you need to figure out your PTC and compare it against any APTC. In the line 9 and 10, choose the appropriate choice; next, fill the annual totals for the empty fields under each column in Line 11. Besides, fill out the monthly amounts under each column in another table below line 11. 

At the end of Part II, you need to pay more attention to Line 24 - Line 26. For line 24, you need to type the total PTC, and the advanced payment of PTC amount in line 25. For Line 26, enter the net PTC. 

Step 5. Fill out Part 3 - Repayment of Excess Advance Payment of the Premium Tax Credit

Here, you need to enter the amounts, including Excess advance payment of PTC, Repayment limitation, and Excess advance premium tax credit repayment.

Step 6. Fill out Part 4 - Shared Policy Allocation

You need to fill in the values in the provided table, including policy number, SSN field, allotment, SLCSP percentage, etc. Just follow the guide.

Step 7. Fill out Part 5 - Alternative Calculation for Year of Marriage

This part is only for couples who get married in the tax year. If it does not apply to you, just ignore it. If yes, you need to consult the directions to figure out whether you need to fill out this section.

That's how to fill out IRS Form 8962. Now, just get EaseUS PDF Editor to start filling.