Department of the Treasury
Internal Revenue Service
Instructions for Form 8962
Premium Tax Credit (PTC)
Purpose of Form
Use Form 8962 to figure the amount of your
premium tax credit
Report changes in circumstances when you re-enroll in
and reconcile it with
advance payment of the premium tax
coverage and during the year. If
is being paid in 2018
for an individual in your
(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
where you enrolled in coverage. 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
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
when you file your tax return. Changes that you should report to
through a State Marketplace.
the Marketplace include the following.
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
monthly premium. If APTC was paid on your behalf or, if APTC
For more information on how to report a change in
was not paid on your behalf but you wish to take the PTC, you
circumstances to the Marketplace, see
must file Form 8962 and attach it to your tax return (Form 1040,
State Marketplace website.
1040A, or 1040NR).
Health Coverage Tax Credit (HCTC). The HCTC is a tax
At enrollment, the Marketplace may have referred to
credit that pays a percentage of health insurance premiums for
APTC as your “subsidy” or “tax credit” or “advance
certain eligible taxpayers and their qualifying family members.
payment.” The term APTC is used throughout these
The HCTC and the PTC are different tax credits that have
instructions to clearly distinguish APTC from PTC.
different eligibility rules. If you think you may be eligible for the
HCTC, see Form 8885 and its instructions or visit
before completing Form 8962.
Health insurance options. If you need health coverage, visit
Qualified small employer health reimbursement arrange-
to learn about health insurance options that are
ment (QSEHRA). New rules enacted under the 21st Century
available for you and your family, how to purchase health
Cures Act of 2016 allow eligible employers to provide a
insurance, and how you might qualify to get financial assistance
QSEHRA to their eligible employees. Under a QSEHRA, an
with the cost of insurance.
eligible employer can reimburse eligible employees for medical
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. If the QSEHRA is affordable for a
employer shared responsibility provisions, see
month, no PTC is allowed for the month. If the QSEHRA is
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
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
What is the Premium Tax Credit
Line 11—Annual Totals
Lines 12 through 23—Monthly
Calculation, later. Also see Qualified Small Employer Health
Reimbursement Arrangement in Pub. 974 for information on
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
Notice 2017-67 is available at
plan. The credit provides financial assistance to pay the
premiums for the qualified health plan offered through a
Marketplace by reducing the amount of tax you owe, giving you
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). 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 IRS.gov/Form8962.
Nov 27, 2017
Cat. No. 60401R