What to gather before you start
Pull together your:
- Form 1095-A
- Last year’s return, if helpful for reference
- Income figures for everyone in your tax family (since modified adjusted gross income (MAGI) from each dependent required to file a return counts toward household income)
Form 8962, part by part
| Part | What it covers |
|---|---|
| I | Family size, household income, federal poverty line percentage |
| II | Premium tax credit calculation and comparison to advance payments |
| III | Repayment of excess advance Premium Tax Credit |
| IV–V | Shared policy allocations and the alternative calculation for marriage during the year |
Source: Internal Revenue Service
Part I asks for family size and income as a percentage of the federal poverty line. Part II uses that percentage to calculate your allowed credit, then compares it to the Advance Premium Tax Credit (APTC) already paid on your behalf.
Finding the numbers on Form 1095-A
Your 1095-A lists the monthly premium for your plan, the premium for the second-lowest-cost Silver plan (SLCSP) that applies to your coverage family, and any APTC paid. The applicable SLCSP premium is generally listed in Part III, Column B, and is used to calculate your premium tax credit, so it’s important to use the correct column.
If you owe money back
If your actual income came in higher than what the Marketplace estimated, you may have to repay some of the APTC. For tax year 2025, repayment is capped based on income level for most filers, though there’s no cap above 400% of the federal poverty line. Beginning with tax year 2026, repayment caps no longer apply, so you must repay the full amount of any excess APTC. Any amount owed flows to Schedule 2 (Additional Taxes) and then to your Form 1040.
If your e-file gets rejected
Your e-file may be rejected if APTC was paid on your behalf, but Form 8962 wasn’t included with your return. If this happens, you can add the completed form to your return and refile electronically rather than mailing a paper return.
Special cases: marriage and shared policies
If you got married during the year and meet certain requirements, Part V provides an alternative calculation that may reduce the amount of excess APTC you have to repay. If you shared a Marketplace policy with someone outside your tax family, Part IV lets you allocate the premium and APTC amounts between the two returns.
