Form 8962, Premium Tax Credit (PTC)

Form 8962, Premium Tax Credit (PTC), is an IRS form used to reconcile advance payments of the premium tax credit or claim the credit on your tax return. Key points include:

1. Required for those who purchased health insurance through the Marketplace

2. Reconciles advance payments of PTC received with the actual credit you’re eligible for

3. Determines if you need to repay excess advance payments or can claim additional credit

4. Uses information from Form 1095-A provided by the Marketplace

5. Factors in household income and family size to calculate the credit

This form is crucial for individuals and families who received advance premium tax credits to lower their health insurance costs. It ensures you receive the correct amount of credit based on your actual income for the year. If your income changed during the year, you might owe money or receive an additional credit. Accurate completion of this form is essential to avoid issues with your tax return and maintain your eligibility for future premium tax credits.