If anyone included on a tax return purchased health insurance through a Health Insurance Marketplace, they will received Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace after the end of the year. This statement must be entered on Form 8962, Premium Tax Credit (PTC), to calculate the Premium Tax Credit and reconcile the tax credit received during the year (the "Advance Premium Tax Credit") with the amount the taxpayer is eligible to receive.
When creating an individual tax return in TaxSlayer Pro, one of the initial questions is if the taxpayer, the spouse, or any dependent enrolled in health insurance through the marketplace. This question can also be found from the Main Menu of the tax return (Form 1040) here:
- Personal Information
- Health Insurance through the Marketplace/Exchange?
Answering YES will make Form 8962 available for editing. To access Form 8962, from the Main Menu of the tax return (Form 1040) select:
- Payments, Estimates & EIC
- Premium Tax Credit (PTC)
Annual and Monthly Contribution Amounts - There are two lines that may need modification depending on the circumstances in the tax return.
- Household Income - the information in this menu pulls from the return but may need modification in certain circumstances:
- Tax Family Size - TaxSlayer Pro will automatically reduce the tax family size if a dependent or spouse can be claimed on another return. If this number needs further editing, select this line and edit as needed.
- Dependents Adjusted Gross Income
Dependents Tax-Exempt Interest
Dependents Form 2555 Amounts
Dependents Nontaxable SSA Benefits - Include information for dependents who are required to file an income tax return because their income meets the income tax return filing threshold, however don't include information for dependents who are filing a tax return only to claim a refund of tax withheld or estimated tax.
Required to Repay All of the Excess APTC Received - There are several uncommon situations in which excess APTC may not all need to be paid back, and TaxSlayer Pro will calculate the limitation in these situations. Thus, it is generally best to leave this question at the default answer NO, but there are several unusual situations where the answer should be changed to YES because the individual was not eligible for Marketplace insurance and, therefore, not eligible to claim PTC or APTC:
- the primary taxpayer is not lawfully present in the U.S.
- the primary taxpayer is incarcerated
Note that even the above have exceptions where the APTC was received for household members who were in the country legally. Consult the Form 8962 instructions for further information.
Note: This is a guide to completing Form 8962 in the TaxSlayer Pro program. It is not intended as tax advice. For further information, consult the IRS resources in Additional Information below.