1 2017 Department of the Treasury Internal Revenue Service Instructions for Form 8962. Premium Tax Credit (PTC). Purpose of Form Reminders Use Form 8962 to figure the amount of your premium tax credit Report changes in circumstances when you re-enroll in (PTC) and reconcile it with advance payment of the premium tax coverage and during the year. If APTC is being paid in 2018. credit (APTC). for an individual in your tax family (described later) and you have had certain changes in circumstances (see the examples You may take PTC (and APTC may be paid) only for health below), it is important that you report them to the Marketplace insurance coverage in a qualified health plan (defined later) where you enrolled in coverage.
2 Reporting changes in purchased through a Health Insurance Marketplace circumstances promptly will allow the Marketplace to adjust your (Marketplace, also known as an Exchange). As a result, you APTC to reflect the PTC you are estimated to be able to take on should complete Form 8962 only for health insurance coverage your tax return. Adjusting your APTC when you re-enroll in in a qualified health plan purchased through a Marketplace. This coverage and during the year can help you avoid owing tax includes a qualified health plan purchased on or when you file your tax return. Changes that you should report to through a State Marketplace. the Marketplace include the following. Changes in household income.
3 If you or a member of your family enrolled in health insurance Moving to a different address. coverage for 2017 through a Marketplace, you should have Gaining or losing eligibility for other health care coverage. received Form 1095-A, Health Insurance Marketplace Gaining, losing, or other changes to employment. Statement, from the Marketplace. Form 1095-A shows the Birth or adoption. months of coverage purchased through the Marketplace and any Marriage or divorce. APTC paid to your insurance company to help cover your Other changes affecting the composition of your tax family. monthly premium. If APTC was paid on your behalf or, if APTC. was not paid on your behalf but you wish to take the PTC, you For more information on how to report a change in must file Form 8962 and attach it to your tax return (Form 1040, circumstances to the Marketplace, see or your 1040A, or 1040NR).
4 State Marketplace website. At enrollment, the Marketplace may have referred to Health Coverage Tax Credit (HCTC). The HCTC is a tax APTC as your subsidy or tax credit or advance credit that pays a percentage of health insurance premiums for ! CAUTION payment. The term APTC is used throughout these certain eligible taxpayers and their qualifying family members. instructions to clearly distinguish APTC from PTC. The HCTC and the PTC are different tax credits that have different eligibility rules. If you think you may be eligible for the HCTC, see Form 8885 and its instructions or visit What's New before completing Form 8962. Qualified small employer health reimbursement arrange- Health insurance options.
5 If you need health coverage, visit ment (QSEHRA). New rules enacted under the 21st Century to learn about health insurance options that are Cures Act of 2016 allow eligible employers to provide a available for you and your family, how to purchase health QSEHRA to their eligible employees. Under a QSEHRA, an insurance, and how you might qualify to get financial assistance eligible employer can reimburse eligible employees for medical with the cost of insurance. expenses, including premiums for Marketplace health insurance. Additional information. For additional information about the If you were covered under a QSEHRA, your employer should tax provisions of the Affordable Care Act (ACA), including the have reported the annual permitted benefit in box 12 of your individual shared responsibility provisions, the PTC, and the Form W-2 with code FF.
6 If the QSEHRA is affordable for a employer shared responsibility provisions, see month, no PTC is allowed for the month. If the QSEHRA is Affordable-Care-Act/Individuals-and-Fami lies or call the IRS. unaffordable for a month, you must reduce the monthly PTC (but Healthcare Hotline for ACA questions (1-800-919-0452). not below -0-) by the monthly permitted benefit amount and you General Instructions must write QSEHRA in the top margin on page 1 of Form 8962. to explain your entry and avoid delay in the processing of your return. For more information, see Column (e) under Line 11 Annual Totals or Lines 12 through 23 Monthly What is the Premium Tax Credit Calculation, later. Also see Qualified Small Employer Health Reimbursement Arrangement in Pub.
7 974 for information on (PTC)? determining QSEHRA affordability and Notice 2017-67 for Premium tax credit (PTC). The PTC is a tax credit for certain additional guidance on QSEHRA coordination with the PTC. people who enroll, or whose family member enrolls, in a qualified Notice 2017-67 is available at health plan. The credit provides financial assistance to pay the 2017-47_IRB#NOT-2017-67. premiums for the qualified health plan offered through a Marketplace by reducing the amount of tax you owe, giving you Future Developments a refund, or increasing your refund amount. You must file Form 8962 to compute and take the PTC on your tax return. For the latest information about developments related to Form Advance payment of the premium tax credit (APTC).
8 APTC. 8962 and its instructions, such as legislation enacted after they is a payment during the year to your insurance provider that pays were published, go to Nov 27, 2017 Cat. No. 60401R. for part or all of the premiums for a qualified health plan covering you or an individual in your tax family. Your APTC eligibility is Who Must File based on the Marketplace's estimate of the PTC you will be able You must file Form 8962 with your income tax return (Form to take on your tax return. If APTC was paid for you or an 1040, Form 1040A, or Form 1040NR) if any of the following individual in your tax family, you must file Form 8962 to reconcile apply to you. (compare) this APTC with your PTC.
9 If the APTC is more than You are taking the PTC. your PTC, you have excess APTC and you must repay the APTC was paid for you or another individual in your tax family. excess, subject to certain limitations. If the APTC is less than APTC was paid for an individual (including you) for whom you the PTC, you can get a credit for the difference, which reduces told the Marketplace you would claim a personal exemption and your tax payment or increases your refund. neither you nor anyone else claims a personal exemption for that individual. See Individual you enrolled for whom no taxpayer will Note. The Marketplace determined your eligibility for and the claim a personal exemption under Lines 12 through 23 Monthly amount of your 2017 APTC using projections of your income and Calculation, later.
10 Your number of personal exemptions when you enrolled in a qualified health plan. If this information changed during 2017 and If any of the circumstances above apply to you, you must file you did not promptly report it to the Marketplace, the amount of an income tax return and attach Form 8962 even if you are not APTC paid may be substantially different from the amount of otherwise required to file. You must use Form 1040, Form PTC you can take on your tax return. See Report changes in 1040A, or Form 1040NR. For help determining which of these circumstances when you re-enroll in coverage and during the forms to file, see Tax Topic 352 at year, earlier, for changes that can affect the amount of your PTC.