Instructions for IRS Form 8962 - Premium Tax Credit (Ptc) 2017

December 1, 2017 "Instructions For Irs Form 8962 - Premium Tax Credit (ptc)" contain the updated filing procedures for the IRS-issued Form 8962. Download your copy of the instructions by clicking the link below.

IRS Form 8962 is a tax form issued by the United States Internal Revenue Service.

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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
or
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
or
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
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
or
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
or
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
Who Must File
for part or all of the premiums for a qualified health plan covering
you or an individual in your tax family. Your APTC eligibility is
You must file Form 8962 with your income tax return (Form
based on the Marketplace’s estimate of the PTC you will be able
1040, Form 1040A, or Form 1040NR) if any of the following
to take on your tax return. If APTC was paid for you or an
apply to you.
individual in your
tax
family, you must file Form 8962 to reconcile
You are taking the PTC.
(compare) this APTC with your PTC. If the APTC is more than
APTC was paid for you or another individual in your
tax
family.
your PTC, you have excess APTC and you must repay the
APTC was paid for an individual (including you) for whom you
excess, subject to certain limitations. If the APTC is less than
told the Marketplace you would claim a personal exemption and
the PTC, you can get a credit for the difference, which reduces
neither you nor anyone else claims a personal exemption for that
your tax payment or increases your refund.
individual. See
Individual you enrolled for whom no taxpayer will
Note. The Marketplace determined your eligibility for and the
claim a personal exemption
under Lines 12 through 23—Monthly
amount of your 2017 APTC using projections of your income and
Calculation, later.
your number of personal exemptions when you enrolled in a
qualified health
plan. If this information changed during 2017 and
If any of the circumstances above apply to you, you must file
you did not promptly report it to the Marketplace, the amount of
an income tax return and attach Form 8962 even if you are not
APTC paid may be substantially different from the amount of
otherwise required to file. You must use Form 1040, Form
PTC you can take on your tax return. See
Report changes in
1040A, or Form 1040NR. For help determining which of these
circumstances when you re-enroll in coverage and during the
forms to file, see Tax Topic 352 at IRS.gov/TaxTopics.
year, earlier, for changes that can affect the amount of your PTC.
If you are filing Form 8962, you cannot file Form
Deductions for health insurance premiums. You cannot
1040EZ, Form 1040NR-EZ, Form 1040-SS, or Form
!
deduct the portion of your health insurance premium on your tax
1040-PR.
CAUTION
return that is paid for by the PTC or APTC (after you determine
how much of any excess APTC you must repay). If you are
If someone else enrolled an individual in your tax family in
deducting medical expenses as an itemized deduction, see Pub.
coverage, and APTC was paid for that individual’s coverage, you
502, Medical and Dental Expenses. If you are claiming the
must file Form 8962 to reconcile the APTC. You need to obtain a
self-employed health insurance deduction, see Pub. 974,
copy of the Form 1095-A from the person who enrolled the
Premium Tax Credit.
individual.
Form 1095-A, Health Insurance Marketplace Statement.
If you are claimed as a dependent on another person's
You will need Form 1095-A to complete Form 8962. The
tax return, the person who claims you will file Form 8962
TIP
Marketplace uses Form 1095-A to report certain information to
to take the PTC and, if necessary, repay excess APTC
the IRS about individuals who enrolled in a
qualified health plan
for your coverage. You do not need to file Form 8962.
through the Marketplace. The Marketplace sends copies to
individuals to allow them to accurately file a tax return taking the
Who Can Take the PTC
PTC and reconciling APTC. For coverage in 2017, the
Marketplace is required to provide or send Form 1095-A to the
You can take the PTC for 2017 if you meet the conditions under
individual(s) identified in the Marketplace enrollment application
(1) and (2) below.
by January 31, 2018. If you are expecting to receive Form
1. For at least one month of the year, all of the following
1095-A for a qualified health plan and you do not receive it by
were true.
early February, contact the Marketplace.
a. An individual in your
tax family
was enrolled in a
qualified
Under certain circumstances, for example, where two
health plan
offered through the Marketplace on the first day of
spouses enroll in a qualified health plan and divorce during the
the month.
year, the Marketplace will provide Form 1095-A to one taxpayer,
b. That individual was not eligible for minimum essential
but another taxpayer also will need the information from that
coverage (MEC) for the month, other than coverage in the
form to complete Form 8962. The recipient of Form 1095-A
individual market. An individual is generally considered eligible
should provide a copy to other taxpayers as needed.
for MEC for the month only if he or she was eligible for every day
VOID BOX. If you received a Form 1095-A with the void box
of the month (see
Minimum essential coverage
(MEC), later).
checked at the top of the form, that means you previously
c. The portion of the
enrollment premiums
(described later)
received a Form 1095-A for the policy shown in Part I that was
for the month for which you are responsible was paid by the due
sent in error. You should not have received a Form 1095-A for
date of your tax return (not including extensions). However, if
the policy shown in Part I of the Form 1095-A. Do not use the
you became eligible for APTC because of a successful eligibility
information on the Form 1095-A with the void box checked or the
appeal and you retroactively enrolled in the plan, then the
previously received Form 1095-A to complete Form 8962.
portion of the enrollment premium for which you are responsible
CORRECTED BOX. If you receive a Form 1095-A with the
must be paid on or before the 120th day following the date of the
corrected box checked at the top of the form, use the information
appeals decision.
on the Form 1095-A with the corrected box checked to figure the
PTC and reconcile any APTC on Form 8962. Do not use the
2. You are an
applicable taxpayer
for 2017. To be an
information on the original Form 1095-A you received for the
applicable taxpayer, you must meet all of the following
policy shown in Part I of the corrected Form 1095-A.
requirements.
a. Your
household income
for 2017 is at least 100% but no
Additional information. For additional information on the PTC,
more than 400% of the federal poverty line for your family size
see Pub. 974, Premium Tax Credit. You also can visit
IRS.gov
(see the instructions for
Line
4, later). However, having
and enter “premium tax credit” in the search box.
household income below 100% of the federal poverty line will not
Also see
How To Avoid Common Mistakes in Completing
disqualify you from taking the PTC if you meet certain
Form 8962
at the end of these instructions.
requirements described under
Household income below 100%
of the federal poverty
line, later.
b. No one can claim you as a dependent on a tax return for
2017.
-2-
Instructions for Form 8962 (2017)
c. If you were married at the end of 2017, generally you
health plan began after the 1st day of the month, you are not
must file a joint return. However, filing a separate return from
allowed a monthly credit amount for the coverage for that month.
your spouse will not disqualify you from being an applicable
However, if an individual in your tax family enrolled in a qualified
taxpayer if you meet certain requirements described under
health plan in 2017 and the enrollment was effective on the date
Married
taxpayers, later.
of the individual's birth, adoption, or placement for adoption or in
foster care, or on the effective date of a court order placing the
You are not entitled to the PTC for health coverage for an
individual with your family, the individual is treated as enrolled as
individual for any period during which the individual is not
of the first day of that month. Therefore, the individual may be a
lawfully present in the United States.
member of your tax family and coverage family for the entire
month for purposes of computing your monthly credit amount.
For additional requirements and more details, see
Applicable
Enrollment premiums. The enrollment premiums are the
taxpayer, later.
total amount of the premiums for the month, reduced by any
Terms You May Need to Know
premium amounts for that month that were refunded, for one or
more
qualified health plans
in which any individual in your
tax
Tax family. For purposes of the PTC, your tax family consists of
family
enrolled. Form 1095-A, Part III, column A, reports the
the individuals for whom you claim a personal exemption on your
enrollment premiums.
tax return (generally you, your spouse with whom you are filing a
You generally are not allowed a monthly credit amount for the
joint return, and your dependents). Your personal exemptions
month if any part of the enrollment premiums for which you are
are reported on your Form 1040 or Form 1040A, line 6d, or Form
responsible that month has not been paid by the due date of
1040NR, line 7d. Your family size equals the number of
your tax return (not including extensions). However, if you
individuals in your tax family (including yourself). If no one,
became eligible for APTC because of a successful eligibility
including you, claims a personal exemption for you, and you
appeal and you retroactively enrolled in the plan, the portion of
indicated to the Marketplace when you enrolled that you would
the enrollment premium for which you are responsible must be
claim your own personal exemption, see Pub. 974 for
paid on or before the 120th day following the date of the appeals
instructions on completing Form 8962.
decision. Premiums another person pays on your behalf are
treated as paid by you.
Household income. For purposes of the PTC, household
income is the modified adjusted gross income (modified AGI) of
If your share of the enrollment premiums is not paid, the
you and your spouse (if filing a joint return) (see
Line
2a, later)
issuer may terminate coverage. The termination is generally
plus the modified AGI of each individual whom you claim as a
effective no sooner than the second month of nonpayment. For
dependent and who is required to file an income tax return
any months you were covered but did not pay your share of the
because his or her income meets the income tax return filing
premiums, you are not allowed a monthly credit amount.
threshold (see
Line
2b, later). Household income does not
Applicable SLCSP premium. The applicable SLCSP
include the modified AGI of those individuals whom you claim as
premium is the second lowest cost silver plan premium offered
dependents and who are filing a 2017 return only to claim a
through the Marketplace where you reside that applies to your
refund of withheld income tax or estimated tax.
coverage family
(described earlier). The SLCSP premium is not
Modified AGI. For purposes of the PTC, modified AGI is the
the same as your
enrollment
premium, unless you enroll in the
AGI on your tax return plus certain income that is not subject to
applicable SLCSP. Form 1095-A, Part III, column B, generally
tax (foreign earned income, tax-exempt interest, and the portion
reports the applicable SLCSP premium. If no APTC was paid for
of social security benefits that is not taxable). Use
Worksheet
your coverage, Form 1095-A, Part III, column B, may be wrong
1-1
and
Worksheet
1-2, later, to determine your modified AGI.
or blank or may report your applicable SLCSP premium as -0-.
Taxpayer’s tax return including income of a dependent
Also, if you had a change in circumstances during 2017 that you
child. A taxpayer who includes the gross income of a
did not report to the Marketplace, the SLCSP premium reported
dependent child on the taxpayer’s tax return must include on
in Part III, column B, may be wrong. In either case you must
Worksheet 1-2 the child’s tax-exempt interest and the portion of
determine your correct applicable SLCSP premium. You do not
the child’s social security benefits that is not taxable.
have to request a corrected Form 1095-A from the Marketplace.
See
Missing or incorrect SLCSP premium on Form
1095-A, later.
Coverage family. Your coverage family includes all individuals
Monthly contribution amount. Your monthly contribution
in your
tax family
who are enrolled in a
qualified health plan
and
amount is used to calculate your monthly credit amount. It is the
are not eligible for
MEC
(other than coverage in the individual
amount of your household income you would be responsible for
market). The individuals included in your coverage family may
paying as your share of premiums each month if you enrolled in
change from month to month. If an individual in your tax family is
the
applicable
SLCSP. It is not based on the amount of
not enrolled in a qualified health plan, or is enrolled in a qualified
premiums you paid out of pocket during the year. You will
health plan but is eligible for MEC (other than coverage in the
compute your monthly contribution amount in Part I of Form
individual market), he or she is not part of your coverage family.
8962.
Your PTC is available to help you pay only for the coverage of
the individuals included in your coverage family.
Qualified health plan. For purposes of the PTC, a qualified
health plan is a health insurance plan or policy purchased
Monthly credit amount. The monthly credit amount is the
through a Marketplace at the bronze, silver, gold, or platinum
amount of your tax credit for a month. Your PTC for the year is
level. Throughout these instructions, a qualified health plan also
the sum of all of your monthly credit amounts. Your credit
is referred to as a policy. Catastrophic health plans and
amount for each month is the lesser of:
stand-alone dental plans purchased through the Marketplace,
The
enrollment premiums
(described next) for the month for
and all plans purchased through the Small Business Health
one or more
qualified health plans
in which you or any individual
Options Program (SHOP), are not qualified health plans for
in your
tax family
enrolled; or
purposes of the PTC. Therefore they do not qualify a taxpayer to
The amount of the monthly
applicable second lowest cost
take the PTC.
silver plan (SLCSP) premium
(described below) less your
monthly contribution amount
(described below).
Minimum essential coverage (MEC). A separate tax
provision requires most individuals to have qualifying health
To qualify for a monthly credit amount, at least one individual
coverage, qualify for a coverage exemption, or make a payment
in your tax family must be enrolled in a qualified health plan on
with their tax return. Health coverage that satisfies this
the 1st day of that month. Generally, if coverage in a qualified
-3-
Instructions for Form 8962 (2017)
requirement is called MEC. An individual in your tax family who
accurate information to the Marketplace about the availability of
is eligible for MEC (except coverage in the individual market) for
employer coverage and the Marketplace determined that he was
a month is not in your coverage family for that month. Therefore,
eligible for APTC for coverage in a qualified health plan. The
you cannot take the PTC for that individual’s coverage for the
Marketplace determination does not apply, however, for the
months that individual is eligible for MEC. In addition to qualified
months September through December of 2017 because Don did
health plans and other coverage in the individual market, MEC
not provide information to the Marketplace about his new
includes:
employer’s offer of coverage. Whether Don is considered
Most coverage through government-sponsored programs
eligible for employer-sponsored coverage and ineligible for the
(including Medicaid coverage, Medicare parts A or C, the
PTC for the months September through December of 2017 is
Children’s Health Insurance Program (CHIP), certain benefits for
determined under the eligibility rules described under
veterans and their families, TRICARE, and health coverage for
Employer-Sponsored Plans in Pub. 974.
Peace Corps volunteers);
Waiting periods and post-employment coverage. If you
Most types of employer-sponsored coverage; and
cannot get benefits under an employer-sponsored plan until after
Other health coverage the Department of Health and Human
a waiting period has expired, you are not treated as eligible for
Services designates as MEC.
that coverage during the waiting period. Also, if you leave your
employment and are offered post-employment coverage such as
Eligibility for MEC. In most cases you are considered eligible
COBRA or retiree coverage, you are not considered eligible for
for MEC if the coverage is available to you, whether or not you
that post-employment coverage unless you actually enroll in the
enroll in it. However, special rules apply to certain types of MEC
coverage. See Coverage after employment ends under
as explained below.
Employer-Sponsored Plans in Pub. 974 for more information.
Employer-sponsored coverage. Even if you and other
Medicaid and CHIP. You generally are considered eligible
members of your tax family had the opportunity to enroll in a plan
for coverage under a government-sponsored program for a
that is MEC offered by your employer for 2017, you are
month if you met the eligibility criteria for that month, even if you
considered eligible for MEC under the plan for a month only if
did not enroll. However, if a Marketplace made a determination
the offer of coverage met a minimum standard of affordability
that you or a family member were ineligible for Medicaid or CHIP
and provided a minimum level of benefits, referred to as
and were eligible for APTC when the individual enrolls in a
“minimum value.” The coverage offered by your employer is
qualified health plan, the individual is treated as not eligible for
generally considered affordable for you and the members of
Medicaid or CHIP for purposes of the PTC for the duration of the
your tax family allowed to enroll in the coverage if your share of
period of coverage under the qualified health plan (generally, the
the annual cost for self-only coverage, which is sometimes
rest of the plan year), even if your actual 2017 income suggests
referred to as the employee required contribution, is not more
that the individual may have been eligible for Medicaid or CHIP.
than 9.69% of your household income. However,
However, in order to rely on a Marketplace's determination
employer-sponsored coverage is not considered affordable if,
that you or a family member were ineligible for Medicaid, CHIP,
when you or a family member enrolled in a qualified health plan,
or a similar program, you must provide accurate information to
you gave accurate information about the availability of employer
the Marketplace when you enroll in a qualified health plan. You
coverage to the Marketplace, and the Marketplace determined
or the family member may be treated as eligible for Medicaid,
that you were eligible for APTC for the individual’s coverage in
CHIP, or the similar program, and not eligible for PTC, if the
the qualified health plan. In addition, if you or your family
Marketplace determination is later found to be based on
member enrolls in employer-sponsored coverage for a month,
incorrect information that was given with an intentional or
you or your family member is considered eligible for
reckless disregard for the facts. See Pub. 974 for more
employer-sponsored coverage for that month, even if the
information.
coverage does not satisfy the affordability and minimum value
standards. Finally, if your employer offered coverage for you but
For more information about eligibility for Medicaid, CHIP, and
not your family, you may be able to take the PTC for your family
other forms of government-sponsored MEC, see Pub. 974.
members. For more information on affordability and minimum
Example. Married taxpayers Tom and Nicole applied for
value, see Pub. 974.
insurance affordability programs at the Marketplace for
Your employer may have sent you a Form 1095-C,
themselves and their two children whom they claim as
Employer-Provided Health Insurance Offer and Coverage, with
dependents, Kim and Chris. The Marketplace determined that
information about the coverage offered to you, if any. See Form
Kim and Chris were eligible for coverage under CHIP. Instead of
1095-C, line 14, and the Instructions for Recipient included with
enrolling Kim and Chris in CHIP, the entire tax family enrolled in
that form, for information about whether you and other members
a qualified health plan (with APTC paid only for Tom and
of your tax family were offered coverage. See Pub. 974 for more
Nicole’s coverage). Because Kim and Chris were eligible for
information on how to determine whether the coverage you were
CHIP, which is MEC, Tom and Nicole are not eligible for the PTC
offered was affordable and provided minimum value, including
for coverage of Kim and Chris, but may be eligible for the PTC
on how to use Form 1095-C.
for their own coverage.
Example. Don was eligible to enroll in his employer’s
Coverage in the individual market outside the
coverage for 2017 but instead applied for coverage in a qualified
Marketplace. While coverage purchased in the individual
health plan through the Marketplace for coverage in 2017. Don
market outside the Marketplace is MEC, eligibility for this type of
provided accurate information about his employer’s coverage to
coverage does not prevent you from being eligible for the PTC
the Marketplace and the Marketplace determined that the offer
for Marketplace coverage. Coverage purchased in the individual
of coverage was not affordable and that Don was eligible for
market outside the Marketplace does not qualify for the PTC.
APTC. Don enrolled in the qualified health plan for 2017. Don
For more details on eligibility for MEC, including additional
got a new job with employer coverage that Don could have
special eligibility rules, see Minimum Essential Coverage (MEC)
enrolled in as of September 1, 2017, but chose not to. Don did
in Pub. 974. You also can check
IRS.gov/uac/Individual-Shared-
not return to the Marketplace to determine if he was eligible for
Responsibility-Provision
for future updates about types of
APTC for the months September through December 2017, and
coverage that are recognized as MEC.
remained enrolled in the qualified health plan. Don is not
Applicable taxpayer. You must be an applicable taxpayer to
considered eligible for employer-sponsored coverage for the
take the PTC. Generally, you are an applicable taxpayer if your
months January through August of 2017 because he gave
household income
for 2017 (described earlier) is at least 100%
-4-
Instructions for Form 8962 (2017)
but not more than 400% of the federal poverty line for your family
You check the box on your Form 8962 to certify that you are a
size (provided in Tables 1-1, 1-2, and 1-3, later) and no one can
victim of domestic abuse or spousal abandonment.
claim you as a dependent for 2017. In addition, if you were
You do not meet the three-year limit for Exception 2,
married at the end of 2017, you must file a joint return to be an
described below.
applicable taxpayer unless you meet one of the exceptions
Domestic abuse. Domestic abuse includes physical,
described under
Married
taxpayers, later.
psychological, sexual, or emotional abuse, including efforts to
control, isolate, humiliate, and intimidate, or to undermine the
For individuals with household income below 100% of the
victim's ability to reason independently. All the facts and
federal poverty line, see
Household income below 100% of the
circumstances are considered in determining whether an
federal poverty line
under line 6, later.
individual is abused, including the effects of alcohol or drug
Individuals who are incarcerated. Individuals who are
abuse by the victim’s spouse. Depending on the facts and
incarcerated (other than pending disposition of charges, for
circumstances, abuse of an individual’s child or other family
example awaiting trial) are not eligible for coverage in a
qualified
member living in the household may constitute abuse of the
health plan
through a Marketplace. However, these individuals
individual.
may be applicable taxpayers and take the PTC for the coverage
Spousal abandonment. A taxpayer is a victim of spousal
of individuals in their
tax families
who are eligible for coverage in
abandonment for a tax year if, taking into account all facts and
a qualified health plan.
circumstances, the taxpayer is unable to locate his or her
Individuals who are not lawfully present. Individuals who
spouse after reasonable diligence.
are not lawfully present in the United States are not eligible for
Three-year limit for Exception 2. You cannot claim the PTC
coverage in a
qualified health plan
through a Marketplace. They
using this exception for more than three consecutive years. For
cannot take the PTC for their own coverage and are not eligible
example, if you used this exception to claim the PTC on your tax
for the repayment limitations in
Table 5
for APTC paid for their
returns for 2014, 2015, and 2016, you cannot use this exception
own coverage. However, these individuals may be applicable
to claim the PTC on your 2017 return.
taxpayers and take the PTC for the coverage of individuals in
Married filing separately. If you file as married filing
their
tax
families, such as their children, who are lawfully present
separately and are not a victim of domestic abuse or spousal
and eligible for coverage in a qualified health plan. For more
abandonment (see
Exception 2—Victim of domestic abuse or
information about who is treated as lawfully present for this
spousal abandonment
under Married taxpayers above), then
purpose, visit HealthCare.gov. See Individuals Not Lawfully
you are not an
applicable taxpayer
and you cannot take the
Present in the United States Enrolled in a Qualified Health Plan
PTC. You generally must repay all of the APTC paid for a
in Pub. 974 for more information on reconciling APTC when an
qualified health plan
that covered only individuals in your
tax
unlawfully present person is enrolled individually or with lawfully
family. If the policy also covered at least one individual in your
present family members.
spouse’s tax family, you generally must repay half of the APTC
Married taxpayers. If you are considered married for federal
paid for the policy. See the instructions for
Line
9, later.
income tax purposes, you must file a joint return with your
However, the amount of APTC you have to repay may be limited.
spouse to take the PTC unless one of the two exceptions below
See the instructions for
Line
28, later.
applies to you.
You are not considered married for federal income tax
Specific Instructions
purposes if you are divorced or legally separated according to
your state law under a decree of divorce or separate
Name. Print or type your name exactly as you entered it on your
maintenance. In that case, you cannot file a joint return but may
tax return. If you are married and filing a joint return, enter the
be able to take the PTC on your separate return. See Pub. 501,
name that appears first on your return.
Exemptions, Standard Deduction, and Filing Information.
Social security number. The social security number on this
If you are considered married for federal income tax
form should match the social security number on your tax return.
purposes, you may be eligible to take the PTC without filing a
If you are married and filing a joint return, enter the first social
joint return if one of the two exceptions below applies to you. If
security number that appears on your tax return.
Exception 1
applies, you can file a return using head of
household or single filing status and take the PTC. If
Exception 2
If you entered an individual taxpayer identification number
applies, you are treated as married but can take the PTC with
(ITIN) on your tax return, enter this number on Form 8962.
the filing status of married filing separately.
Victims of domestic abuse or spousal abandonment.
Exception 1—Certain married persons living apart. You
Check the box on the line above Part I of Form 8962 if you are
may file your return as if you are unmarried and take the PTC if
filing as married filing separately, are a victim of domestic abuse
one of the following applies to you.
or spousal abandonment, and qualify for
Exception 2—Victim of
You file a separate return from your spouse on Form 1040 or
domestic abuse or spousal abandonment
under Married
Form 1040A because you meet the requirements for Married
taxpayers, earlier. By checking this box, you are certifying that
persons who live apart under Head of Household in the
you qualify for an exception to the requirement to file a joint
instructions for Form 1040 or Form 1040A.
return with your spouse. Do not attach documentation of the
You file as single on your Form 1040NR because you meet
abuse or abandonment to your tax return. Keep any
the requirements for Married persons who live apart under Were
documentation you may have with your tax return records. For
You Single or Married? in the instructions for Form 1040NR.
examples of what documentation to keep, see Pub. 974.
Exception 2—Victim of domestic abuse or spousal
Married filing separately. If APTC was paid for your coverage
abandonment. If you are a victim of domestic abuse or spousal
but you cannot take the PTC because you are married filing a
abandonment, you can file a return as married filing separately
separate return and you do not qualify for an exception to the
and take the PTC for 2017 if all of the following apply to you.
joint filing requirement, complete lines 1 through 5 to figure your
You are living apart from your spouse at the time you file your
separate household income as a percentage of the federal
2017 tax return.
poverty line. Skip lines 6 through 8b and complete lines 9 and 10
You are unable to file a joint return because you are a victim
(and Part IV, if applicable). When completing line 11 or lines 12
of
domestic abuse
(described next) or
spousal abandonment
through 23, complete only column (f). Then complete the rest of
(described below).
the form to determine how much you must repay.
-5-
Instructions for Form 8962 (2017)

Download Instructions for IRS Form 8962 - Premium Tax Credit (Ptc) 2017

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