Health Insurance Premium Tax Credit
Reporting your health insurance on your tax return can be confusing. Which forms do you need and how do you report it? This page will cover specifically the Form 8962 which is used for the Premium Tax Credit. The Premium Tax Credit (PTC) which was enacted as part of the Affordable Care Act, is a refundable tax credit paid to eligible households that have obtained healthcare insurance via the healthcare exchange (marketplace) in the tax year. It can be paid in advance directly to a healthcare insurance company to offset the cost of monthly health insurance premiums. If you received the credit, you will need to report the information on your tax return. START
At efile.com, we cover all the healthcare tax forms in the following pages:
- What is Form 1095-A-Health Insurance Marketplace Statement?
- What is Form 1095-B-Health Coverage?
- What is Form 1095-C-Employer-Provided Health Insurance Offer and Coverage?
- What is Form 8962-Premium Tax Credit (this page)
- What is Form 8965-Health Coverage Exemptions?
When you prepare your tax return on efile.com, you can easily report and efile your healthcare information with your return.
What is Form 8962?
Taxpayers use this form to claim the Premium Tax Credit. It's easy to include the form in your efile.com tax return; simply answer a few questions and the software will automatically generate and include the form in your return.
How Do I Use Form 8962?
Use the form to calculate and report your Premium Tax Credit amount on your tax return, as well as reconcile the advance credit payments made on your behalf with the actual premium tax credit amount. When you prepare and file your return on efile.com, the payment is automatically calculated for you and Form 8962 is submitted for you to the IRS.
Where Do I Find My Premium Tax Credit Information?
You should receive Form 1095-A, Health Insurance Marketplace Statement, from the Health Insurance Marketplace (or Exchange). The form includes the dates you were enrolled for the coverage and your monthly premium amounts by January 31 of the year. When you prepare your return on efile.com, the software will guide you in reporting this information on Form 1095-A.
Am I Required to File a Tax Return with Form 8962?
Yes, you will need to file a tax return in order to file Form 8962. That way, you can continue qualifying for advance tax payments on your Marketplace health coverage.
What if I Have No Income?
You can still prepare and efile your tax return on efile.com. During the efile process, enter $1 as your income. The software will direct you to the correct form based on the information you provide.
Can I File My Tax Return Without Form 8962?
Though you may file a tax return without Form 8962, the IRS may send you a letter asking you to send them your Premium Tax Credit information. To prevent this, prepare and efile your return on efile.com; the software will determine the right forms for you to complete and file based on your answers to a few simple tax questions.
Who Sends Form 8962 and Where Will It Be Sent?
You send the form to the IRS with your completed tax return. On efile.com, Form 8962 will be directly submitted with your tax return to the IRS, so there's no need for you to mail it in!
Where Do I Get Form 8962?
The efile.com software will generate this form for you when you prepare and efile your tax return on efile.com.
How Do I Report My Premium Tax Credit Information to the IRS?
You can report your Form 8962 information as you prepare your tax return on efile.com. Click on Federal Taxes/HealthCare on the left side of your account screen, then answer Yes for having health insurance for the entire year and Yes for having insurance through the Marketplace. Once you do this, the software will recommend that you add and complete Form 1095-A.
More Information on Health Insurance and Taxes
How Does the Affordable Care Act/Obamacare Affect My Tax Return?
What is the Premium Tax Credit?
What are the Tax Payments and Exemptions for Not Having Insurance?
What Medical Expenses Can I Claim on My Tax Return?
How Do Health Savings Plans Benefit My Tax Return?