Instructions For Form 8962 - Premium Tax Credit (Ptc)

Example 1. John and Carol are married at the end of 2017

into account $5,000 ($10,000 x 0.50) of the enrollment

and have one child, Mark. John and Carol enrolled in a qualified

premiums in figuring her PTC. Nancy must reconcile $3,250

health plan for 2017. The plan covered John, Carol, and Mark,

($6,500 x 0.50) of the APTC for her coverage. On her Form

with an annual premium of $14,000 and APTC of $8,500, which

8962, Part IV, line 30, Nancy enters Kevin’s social security

applied to the coverage for all of the individuals. John moved out

number in column (b) and enters “0.50” in columns (e) and (g).

of the residence on May 15. Carol and Mark continued to reside

Column (f) is left blank. Instead of allocating the applicable

at the residence. John and Carol file separate returns for 2017.

SLCSP premium, Nancy will enter the applicable SLCSP

Carol qualifies to file her return as head of household. John files

premium that applies to Nancy. Nancy enters this amount on the

his return as married filing separately. Carol claims Mark as her

applicable lines in column (b), lines 12 through 23.

dependent. Because Carol and John are not filing a joint return,

Example 3. For 2017, Michael and Colleen are married with

they each have their own tax families, which are different from

no dependents and are enrolled in a qualified health plan. APTC

the tax family they indicated to the Marketplace they expected to

of $8,700 is paid for them during 2017. Michael and Colleen

have when they enrolled. Carol’s family size is two because

each file their returns for 2017 as married filing separately and

John is not in her tax family. Carol’s federal poverty line

Exception 2—Victim of domestic abuse or spousal

percentage is determined using only her and Mark's modified

abandonment

does not apply to either of them. According to

AGI. John’s modified AGI is not included because he is not in

Table

3, Michael and Colleen follow the rules under

Allocation

Carol’s tax family. According to

Table

3, John and Carol follow

Situation 2. Taxpayers married at year end but filing separate

the rules under

Allocation Situation 2. Taxpayers married at year

returns. Michael and Colleen are not applicable taxpayers and

end but filing separate

returns.

cannot take the PTC. They must allocate the $8,700 APTC

one-half (50%) to Michael and one-half (50%) to Colleen. On her

Because John is not in Carol’s tax family, he is not in her

Form 8962, Part IV, line 30, Colleen enters Michael’s social

coverage family, which consists of Carol and her dependent,

security number in column (b) and enters “0.50” in column (g).

Mark, for purposes of determining her applicable SLCSP

On his Form 8962, Part IV, line 30, Michael enters Colleen’s

premium. If neither John nor Carol notifies the Marketplace

social security number in column (b) and enters “0.50” in column

about the change in family circumstances, the Form 1095-A that

(g).

Carol or John receives will report in column B the applicable

Example 4. The facts are the same as

Example 3

except that

SLCSP premium that covers Carol, Mark, and John, which will

only Colleen is covered under the policy. Because Michael and

be incorrect. Carol looks up the SLCSP premium that applies to

Colleen are not applicable taxpayers and cannot take the PTC,

her and Mark.

Colleen does not complete Part IV of her Form 8962. She

Carol takes into account $7,000 ($14,000 x 0.50) of the

reports all of the APTC on line 11 or lines 12 through 23,

premiums of the plan in which she and Mark were enrolled in

whichever applies. Michael does not file Form 8962 because he

figuring her PTC. Carol must then reconcile $4,250 ($8,500 x

was not enrolled in a qualified health plan.

0.50) of the APTC for her coverage. Amounts from this policy are

allocated for all months Carol and John were enrolled. On her

Allocation Situation 3. No APTC. If this allocation situation

Form 8962, Part IV, line 30, Carol enters John’s social security

applies, the enrollment premiums are allocated in proportion to

number in column (b) and enters “0.50” in columns (e) and (g).

the SLCSP premium that applies to each taxpayer’s coverage

Column (f) is left blank. Instead of allocating the applicable

family. If no APTC was paid for the policy, the Marketplace may

SLCSP premium, Carol will enter the applicable SLCSP

not know which enrollees are in which tax family, and therefore

premium that applies to her and Mark.

may furnish only one Form 1095-A showing the total premium.

When this happens, the taxpayer receiving the Form 1095-A

Because John is filing his tax return as married filing

should provide a copy to the other taxpayers. You and the other

separately and no exception to the married filing jointly

taxpayer must complete only column (e) on the appropriate line

requirement applies, he is not an applicable taxpayer and must

in Part IV to allocate the enrollment premiums to each family.

repay the $4,250 in APTC allocated to him, subject to the

See

Missing or incorrect SLCSP premium on Form 1095-A

repayment limitations on line 28. On his Form 8962, Part IV,

under Line 10, earlier, to determine your correct applicable

line 30, John enters Carol’s social security number in column (b)

SLCSP premium.

and enters “0.50” in column (g). John leaves columns (e) and (f)

Example. Gary and his 25-year-old nondependent son, Jim,

blank because he is not an applicable taxpayer and cannot take

enroll in a qualified health plan. Jim has no dependents. The

the PTC.

policy covers Gary, Jim, and Gary’s two young daughters who

Example 2. Kevin and Nancy are married at the end of 2017

are Gary’s dependents. No APTC is paid for this policy. The

and have no dependents. Kevin and Nancy are enrolled in a

Form 1095-A furnished by the Marketplace to Gary shows an

qualified health plan for 2017 with an annual premium of $10,000

enrollment premium of $15,000 for the year and the SLCSP

and APTC of $6,500. According to

Table

3, Kevin and Nancy

premium that applies to a coverage family that incorrectly

follow the rules under

Allocation Situation 2. Taxpayers married

includes Gary, Gary's daughters, and Jim. (Some states may

at year end but filing separate

returns. Nancy is a victim of

report -0- or leave column B blank on the Form 1095-A when no

domestic abuse and is unable to file a joint return under the rules

APTC is paid.) Gary and Jim determine that the SLCSP premium

outlined in

Exception 2—Victim of domestic abuse or spousal

that applies to Gary and his two dependents is $12,000 and the

abandonment

under Married taxpayers, earlier. Nancy files her

SLCSP premium that applies to Jim is $6,000. Gary and Jim are

return using the filing status married filing separately and checks

applicable taxpayers and each can take the PTC. According to

the box on the front of Form 8962.

Table

3, Gary and Jim use the rules under

Allocation Situation 3.

Nancy’s family size for 2017 is one (Nancy). Nancy is the only

APTC.

person in her coverage family. If neither Kevin nor Nancy notifies

Gary computes his credit using his household income and

the Marketplace about the change in family circumstances, the

family size of three, and the applicable SLCSP premium for a

Form 1095-A that Kevin or Nancy receives will report in column

coverage family of three of $12,000. Jim computes his credit

B the premium for the applicable SLCSP that covers Nancy and

using his household income and family size of one, and the

Kevin, which will be incorrect. Nancy must determine the correct

applicable SLCSP premium for a coverage family of one of

premium for the applicable SLCSP covering only Nancy. Nancy

$6,000.

looks up her correct premium for the applicable SLCSP.

Gary and Jim must allocate the enrollment premiums of

Nancy’s federal poverty line percentage is determined using

$15,000 reported on the Form 1095-A, Part III, column A, in

Nancy's modified AGI and her family size of one. Nancy takes

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Instructions for Form 8962 (2017)

Instructions For Form 8962 - Premium Tax Credit (Ptc) - 2017 Page 17

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