What is Form 8962?
Form 8962 is an important form from the Internal Revenue Service (IRS) that allows you to claim the Premium Tax Credit (PTC). The PTC is a refundable tax credit which is designed to help offset the cost of insurance premiums for individuals and families who purchase health insurance through the Health Insurance Marketplace. The PTC is available to taxpayers with incomes between 100% and 400% of the federal poverty level (FPL). Taxpayers must file Form 8962 in order to claim the PTC.
Who is Eligible to File Form 8962?
Form 8962 is available to taxpayers with incomes between 100% and 400% of the federal poverty level (FPL). The FPL is adjusted each year and can be found on the IRS website. In order to be eligible to receive the PTC, taxpayers must also meet certain other criteria. These criteria include: having an offer of qualified health insurance coverage from their employer; being enrolled in a qualified health plan offered through the Health Insurance Marketplace; and, having household incomes between 100% and 400% of the FPL.
What Information is Needed to File Form 8962?
In order to complete Form 8962, taxpayers must have the following information available: their federal income tax return from the prior year; the name and social security number of everyone in the household who is covered by the health insurance plan; the policy number of the plan; the premium amount; the amount of any advance payments of the PTC received; and, the amount of any employer contributions to health insurance premiums.
How to File Form 8962 in 2023
In 2023, taxpayers can file Form 8962 either electronically or by mail. To file electronically, taxpayers must use the IRS e-file system. Taxpayers who choose to e-file must have a valid email address and must create an account with the IRS. Once an account is created, taxpayers can log in to their account and complete the Form 8962 on the IRS website. To file by mail, taxpayers must print out the form and mail it to the IRS.
What Happens if There is a Difference Between the Amount of Advance Payments and the Amount of the PTC?
If the amount of advance payments of the PTC received is greater than the amount of the PTC calculated on Form 8962, the taxpayer must repay the difference. This difference is reported as an additional tax on the taxpayer’s Form 1040 or Form 1040A. Taxpayers who owe additional taxes due to the difference between the amount of advance payments and the amount of the PTC must make sure to pay the taxes by the filing due date for the tax year in which the PTC was claimed.
What Happens if There is an Error on Form 8962?
If there is an error on Form 8962, the taxpayer must correct the error as soon as possible. The taxpayer should contact the IRS to discuss the error and make any necessary corrections to the form. Failure to correct an error on Form 8962 may result in the taxpayer being required to repay any advance payments of the PTC received or having to pay additional taxes.
Additional Resources for Form 8962
The IRS provides additional information and resources for taxpayers who need help filing Form 8962. These resources include: an online help center; a tax law library; and, a toll-free telephone number. Taxpayers can also find additional information on the IRS website or by contacting a qualified tax professional.
Form 8962 is an important form from the IRS that allows taxpayers to claim the Premium Tax Credit. Taxpayers who have incomes between 100% and 400% of the federal poverty level may be eligible to receive the PTC and must file Form 8962 in order to claim it. Taxpayers can file Form 8962 either electronically or by mail and should contact the IRS if there is an error on the form. Additional resources are available for taxpayers who need help filing the form.