IRS Form 8962: A Comprehensive Breakdown

The Affordable Care Act (ACA) has brought about significant changes to the healthcare landscape in the United States, and one of its key components is the premium tax credit, which helps eligible individuals and families afford health insurance. To claim this credit, you’ll need to complete IRS Form 8962, Premium Tax Credit.

What is Form 8962?

Form 8962 is used to calculate and reconcile the premium tax credit you received or used to pay for health insurance. It helps the IRS determine how much of the credit you are eligible for and whether you owe any money back or are due a refund.

Who Needs to File Form 8962?

You must file Form 8962 if you:

Received the premium tax credit in advance to pay for health insurance coverage through the Health Insurance Marketplace.
Used the premium tax credit to pay for health insurance coverage outside of the Marketplace.
Are claiming an exemption from the individual mandate, which requires most individuals to have health insurance coverage.

How to File Form 8962

You can file Form 8962 by mail or electronically using tax preparation software. If you file by mail, you can download the form from the IRS website or you can request a copy by calling the IRS at 1-800-TAX-FORM (1-800-829-3676).

If you file electronically, you can use tax preparation software that is approved by the IRS. Several tax preparation software programs can help you complete and file Form 8962, including TurboTax, H&R Block, and TaxAct.

Tips for Completing Form 8962

When completing Form 8962, be sure to have the following information readily available:

Your Social Security number and the Social Security numbers of any dependents you are claiming.
Form 1095-A, Health Insurance Marketplace Statement, or Form 1095-B, Health Coverage, if you received the premium tax credit or used it to pay for health insurance coverage.
Your income and tax filing status.
Any other information that is requested on the form.

If you are not sure how to complete Form 8962, you can get help from a tax professional or call the IRS at 1-800-TAX-FORM (1-800-829-3676).

Conclusion

IRS Form 8962 is an important form for anyone who has received or used the premium tax credit. By completing and filing Form 8962 accurately and on time, you can ensure that you receive the full amount of the credit that you are eligible for and avoid any tax penalties.