To assist you in better understanding items that may impact you while completing your Federal tax return, TaxAct has gathered information on forms related to the Affordable Care Act of 2010 (aka ACA, Health Care Law, Obamacare). All the items listed below may not apply to you, as each tax situation is unique. For some individuals, none of these items will apply.
Excess Advance Premium Tax Credit Repayment
- Calculated on Line 29 of Form 8962 Premium Tax Credit (PTC)
- Transferred to Line 2 of Schedule 2 (Form 1040) Additional Taxes (Line 44 of Form 1040-NR U.S. Nonresident Alien Income Tax Return)
- This amount is what must be paid back to the government due to the difference between the advance payments of the premium tax credit received during 2022 (reflected on Form 1095-A Health Insurance Marketplace Statement, Line 33, Column C) and the premium tax credit as calculated at the end of the year on Form 8962, Line 24.
Net Premium Tax Credit
- Calculated on Line 26 of Form 8962
- Transferred to Line 9 of Schedule 3 (Form 1040) Additional Credits and Payments (Line 65 of Form 1040-NR)
- This is the amount of credit which will be allowed on the individual tax return. This is a refundable credit and so will increase the refund amount (or reduce the amount owed).
Individual Shared Responsibility Payment
- The Individual Shared Responsibility Payment is no longer in effect. Prior to 2020, this is the fee you paid if you did not have qualified health coverage for all 12 months during the tax year and did not qualify for any exemption.
IRS FORMS and PUBLICATIONS:
- Form 8962 Premium Tax Credit (PTC)
This form is used to figure the amount of your Premium Tax Credit and reconcile it with any Advanced PTC received during the tax year. If you received more PTC than you are eligible for, you will have to repay all or a portion of that excess. If the calculated PTC is more than what you received during the year, you will have a Net PTC.
- Form 1095-A Health Insurance Marketplace Statement
The Form 1095-A is used to report certain information to the IRS about individuals who enrolled in a qualified health plan through the Marketplace. This form is not filed with the Federal return; however, the information from this form will be used to calculate the Net Premium Tax Credit or the Excess Advance Premium Tax Credit Repayment on Form 8962.
You must complete Form 8962 and file it with your tax return if you received premium assistance through advance credit payments (whether or not you otherwise are required to file a tax return) or if you want to claim the premium tax credit when you file your return.
- IRS Publication 974 Premium Tax Credit (PTC)
This publication provides additional information to help you determine if your health care coverage is minimum essential coverage. There are also instructions for certain special situations such as penalty relief when repaying the excess APTC, determining the second-lowest cost silver plan (SLCSP), using the alternative calculation for taxpayers who got married during the tax year, and information for self-employed taxpayers.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.