Instructions For Form 8962 - Premium Tax Credit (Ptc)

2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 8962

Premium Tax Credit (PTC)

Reminders

Purpose of Form

Use Form 8962 to figure the amount of your

premium tax credit

Report changes in circumstances when you re-enroll in

(PTC)

and reconcile it with

advance payment of the premium tax

coverage and during the year. If

APTC

is being paid in 2018

credit

(APTC).

for an individual in your

tax family

(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

(defined later)

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

PTC

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

HealthCare.gov

when you file your tax return. Changes that you should report to

through a State Marketplace.

the Marketplace include the following.

Changes in

household

income.

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

tax

family.

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

HealthCare.gov

or your

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

CAUTION

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

IRS.gov/HCTC

What's New

before completing Form 8962.

Health insurance options. If you need health coverage, visit

Qualified small employer health reimbursement arrange-

HealthCare.gov

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

IRS.gov/

month, no PTC is allowed for the month. If the QSEHRA is

Affordable-Care-Act/Individuals-and-Families

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

General Instructions

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

(PTC)?

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

qualified

Notice 2017-67 is available at

IRS.gov/irb/

health

plan. The credit provides financial assistance to pay the

2017-47_IRB#NOT-2017-67.

premiums for the qualified health plan offered through a

Marketplace by reducing the amount of tax you owe, giving you

Future Developments

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

Instructions For Form 8962 - Premium Tax Credit (Ptc) - 2017

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