Why is the IRS asking me for form 8962?

What triggers form 8962?

Advance payment of the premium tax credit (APTC).

If APTC was paid for you or an individual in your tax family, you must file Form 8962 to reconcile (compare) this APTC with your PTC. If the APTC is more than your PTC, you have excess APTC and you must repay the excess, subject to certain limitations.

How do I find out why my tax return was rejected?

When an e-filed return gets rejected, the IRS will often let you know within a few hours. It also sends a rejection code and explanation of why the e-filed return was rejected.

Will I get money if I file the 8962 form 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. If you used too little, claim the difference as a 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.

Why is TurboTax asking for form 8962?

The IRS created three new forms, 1095-A, 1095-B, and 1095-C, to help taxpayers comply with the new health care law. Form 8962 is used to determine eligibility for the Premium Tax Credit and how much of a credit you are entitled to.

What disqualifies you from the premium tax credit?

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.

Can I fill out 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.

Why do I owe taxes for health insurance?

If there's a difference between the amount of the premium tax credit you used during the year and the amount you actually qualify for, it will impact your refund or the amount of taxes you owe. You'll include Form 8962 with your federal tax return. Get details on how to reconcile.

Who completes form 8962?

You must file a Form 8962 with your federal income tax return if you received an advanced premium tax credit (APTC) through the Marketplace during the previous year in order to reconcile your estimated and actual income for the year.

What happens if I don't put my 1095 on my taxes?

Form 1095-B is not required to file your state or federal taxes and you may self‑attest to your health coverage without it. You should get a Form 1095-B in the mail by January 31 following the reported tax year.

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.

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.

What is form 8962?

Form 8962, Premium Tax Credit

If you had Marketplace coverage and used the premium tax credit to lower your monthly plan premiums, you must file this tax form with your federal income tax return. You'll use this form to “ reconcile. Reconcile.

How do I know if I need to file 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.

Do 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.

How to fill out 8962 step by step?

Is a rejected tax return bad?

Remember, if your original return was filed by the due date and was rejected, there's no need for you to worry. The IRS considers your return on time as long as you made the corrections and file it again within five business days.

How do I know if my tax return has been flagged?

If the IRS decides that your return merits a second glance, you'll be issued a CP05 Notice. This notice lets you know that your return is being reviewed to verify any or all of the following: Your income. Your tax withholding.

What is true about the annual filing season program?

Annual Filing Season Program participants have limited representation rights, meaning they can represent clients whose returns they prepared and signed, but only before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service.