What is form 8962?

What happens if I don't fill out form 8962?

Taxpayers who are required to reconcile APTC and who file on paper but do not include Form 8962 will generally receive letters from the IRS. Because business rule F8962-070 only applies to electronically filed returns, these paper-filed returns will be accepted and the IRS will generally follow up by mail.

Why am I not getting a tax credit for health insurance?

For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.

Who completes form 8962?

If you purchased health insurance from the Healthcare.gov site — or your state healthcare marketplace if you live in a state that maintains one — you'll need to use Tax Form 8962. This form has two parts you'll need to fill out: determining your eligibility for the credit. claiming the premium tax credit.

How can I avoid paying back my premium tax credit?

Report any changes in your income during the year to the Marketplace, so your credit can be adjusted and you can avoid any significant repayments at the end of the year.

Does TurboTax automatically fill out form 8962?

TurboTax will automatically fill out Form 8962 once you enter your Form 1095-A. You have to include Form 8962 with your tax return if: You qualified for the Premium Tax Credit in 2024. You or someone on your tax return received advance payments of the Premium Tax Credit.

How does form 8962 affect tax returns?

You will use Form 8962 to reconcile the difference between the APTC made on your behalf and the actual amount of the credit that you may claim on your return. This filing requirement applies whether or not you would otherwise be required to file a return.

What if I didn't receive form 8962?

If the IRS rejected your tax return due to missing Form 8962, you'll need to incorporate this form and resubmit your return. Here's how you can proceed: If you set up a Healthcare.gov account, get a copy of form 1095-A online from your account.

What happens if I don't report my 1095-A?

You can use Form 1095-A to reconcile any advance premium tax credits you received during the year with the amount of credits you were eligible to receive. If you fail to file a tax return reconciling those payments, you will not be eligible for premium tax subsidies in the next year.

What is considered income for marketplace insurance?

Your total (or “gross”) income for the tax year, minus certain adjustments you're allowed to take. Adjustments include deductions for conventional IRA contributions, student loan interest, and more.

Why can't I file my taxes electronically?

Ex: If you have a form not available for e-filing, or you, your spouse, or dependent has an invalid Social Security number (SSN), you can't e-file your return. Either way, we'll help you see if you can e-file.

How to fill out 8962 step by step?

Does everyone get the premium tax credit?

Your tax credit is based on the income estimate and household information you put on your Marketplace application. Income between 100% and 400% FPL: If your income is in this range, in all states you qualify for premium tax credits that lower your monthly premium for a Marketplace health insurance plan.

What happens if I underestimate my income for Obamacare in 2024?

For the 2024 tax year, if you underestimated your income and received a larger tax credit than you were eligible for, you must repay the difference between the amount of premium tax credit you received and the amount you were eligible for.

How do I know if I need form 8962?

Form 8962, Premium Tax Credit

Use IRS Form 8962 to find out if you used the right amount of premium tax credit during the year. Use the form to compare the advance amount you use to the amount you qualify for based on your final income. If you used too much, you'll repay it via taxes.

What disqualifies you from the premium tax credit?

The premium tax credit is only available to people without another offer of affordable and adequate coverage; in most cases, this will mean that people with an offer of employer-sponsored coverage will not be eligible for the premium tax credit.

Can I submit form 8962 online?

Your accountant or financial adviser may provide you with a paper copy of the form or ask you to fill out the form online. If you're using tax preparation software, that software should have a link to an online Form 8962 that you can complete.

Will I have to pay back my premium tax credit?

If at the end of the year you've taken more premium tax credit in advance than you're due based on your final income, you'll have to pay back the excess when you file your federal tax return. If you've taken less than you qualify for, you'll get the difference back.

When should I receive my 1095-A?

Important Information to Help Consumers:

Consumers should receive IRS Form 1095-A from Covered California by January 31, if they have not received it already.

Why is my healthcare.gov premium so high?

Five factors can affect a plan's monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents. Notice: FYI Your health, medical history, or gender can't affect your premium.