ACA credit reconciliation
Form 8962 Guide
Use Form 1095-A data to calculate the Premium Tax Credit and reconcile advance credit payments on Form 8962.
8962
Premium Tax Credit
Decision point
Use this guide when
- You are claiming the Premium Tax Credit for Marketplace coverage.
- Advance Premium Tax Credit payments were made for you or a tax-family member.
- A Marketplace policy must be allocated between tax families or addressed under another Form 8962 allocation rule.
Read the document
Key boxes, columns, and parts
| Location | Label | What it means | Next destination |
|---|---|---|---|
| Part I | Annual and monthly contribution amount | Uses tax-family size and household income to determine the applicable contribution percentage and amount. | Keep with the form records. |
| Part II | PTC and APTC reconciliation | Compares enrollment premiums, benchmark premiums, contribution amount, and advance payments. | Form 1040 credit or additional tax flow |
| Part III | Repayment of excess APTC | Computes excess advance payments and applies the instructions governing repayment. | Keep with the form records. |
| Part IV | Shared policy allocation | Allocates policy amounts when one Marketplace policy covers members of more than one tax family. | Keep with the form records. |
| Part V | Alternative calculation for year of marriage | Provides the optional calculation when its eligibility requirements are met. | Keep with the form records. |
Follow the amounts
From source document to tax return
-
1. Gather every Form 1095-A
Check policy, household, and monthly coverage information. Open the related tool →
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2. Determine the tax family and household income
Follow the Form 8962 definitions and include required dependent income.
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3. Complete annual or monthly calculation
Use annual totals only when the instructions permit; otherwise complete monthly lines.
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4. Reconcile PTC and APTC
Determine net PTC or excess advance payment under the current rules.
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5. Transfer the result to Form 1040
Carry the credit or additional tax as directed by the Form 8962 and Form 1040 instructions.
Before filing
Four checks that prevent common errors
- Use the Form 1095-A for every Marketplace policy covering the tax family.
- Include required household income from dependents under the Form 8962 definition.
- Use monthly calculations when coverage, benchmark premiums, household, or allocation facts changed.
- Review shared-policy, marriage, divorce, and domestic-abuse exceptions only under the official instructions.
Continue the workflow
Related guides and calculators
Common questions
Form 8962 FAQ
What is the difference between PTC and APTC?
PTC is the credit determined on the return. APTC is an advance payment made during the year to the insurer based on Marketplace estimates. Form 8962 reconciles them.
Can I file without Form 8962 when APTC was paid?
Form 8962 is used to reconcile APTC. Follow the current IRS filing instructions for your Marketplace coverage and advance-payment facts.
Where do the monthly premium amounts come from?
They come from Form 1095-A: enrollment premiums in Column A, the applicable benchmark premium in Column B, and advance PTC payments in Column C.