Understanding IRS Form 8962: A Comprehensive Guide

📝Form 8962 is used by taxpayers who purchased a qualifying health insurance plan through the marketplace.

💰The form reconciles the amount of the advanced premium tax credit received with the actual premium tax credit calculated based on income.

📚The form requires information from the 1095-A, which details the coverage and advanced premium tax credit received.

🧮Calculations on the form involve comparing income to the federal poverty line and calculating the contribution amount.

📝Failing to complete Form 8962 may result in an IRS tax notice and potential tax penalties.

Who needs to fill out Form 8962?

—Taxpayers who purchased a qualifying health insurance plan through the marketplace and received advanced premium tax credits must complete Form 8962.

What information is needed to fill out the form?

—You will need information from your 1095-A form, such as monthly premium amounts and the second lowest cost silver plan premium. Your modified adjusted gross income (MAGI) is also required.

What happens if I don't complete Form 8962?

—Failure to complete the form may result in an IRS tax notice. The IRS needs this information to determine if you owe additional money or are entitled to a higher refund.

How is the premium tax credit calculated?

—The premium tax credit is calculated by comparing your income to the federal poverty line. The form uses percentages to determine the monthly contribution amount.

Can I round the amounts when filling out the form?

—Yes, you are allowed to round the amounts to the nearest whole dollar when completing Form 8962.

00:01In this video, we provide a comprehensive guide on filling out IRS Form 8962.

03:45Form 8962 is used by taxpayers who purchased health insurance through the marketplace and received premium tax credits.

08:21The form requires information from the 1095-A, such as monthly premiums and the second lowest cost silver plan premium.

11:31Calculations on the form involve comparing income to the federal poverty line and determining the contribution amount.

13:34Failure to complete the form may result in an IRS tax notice and potential penalties.