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Based on your entries in a return, you may be prompted to enter an amount for a self-employed health insurance deduction adjustment. This entry is necessary due to the calculations detailed on pages 56-72 of IRS Publication 974 Premium Tax Credit (PTC). The actual calculation for the self-employed health insurance deduction adjustment is automatically done by the program. The IRS instructions, including the worksheets, are also found in IRS Publication 974 for reference.

It is common for Worksheets W and X to be used in the calculation and then the Iterative Calculation Method to be utilized (including the calculations in the Step 3 and Step 5 worksheets). As explained in the instructions for Step 6 (page 63 of Pub 974), you must repeat Steps 4 and 5 until the changes in both the self-employed health insurance deduction and the total PTC between the steps are less than $1.00. This involves multiple loops in the worksheet calculations to arrive at the final deduction adjustment and is the reason the user must enter the amount. The calculations done in the program are all according to the IRS instructions.

You are prompted to enter the self-employed health insurance deduction adjustment on a screen in the Federal Q&A Interview when completing the Premium Tax Credit section (see the navigation steps to that screen below). In the event you do not utilize the Q&A Interview, an Alert is generated to prompt you to make the entry before filing the return.

To enter or review the information on the screen titled Health Insurance - PTC - Self-Employed Health Insurance Deduction Adjustment (if you need help accessing Form 1095-A, go to our Form 1095-A - Entering Health Insurance Marketplace Statement in Program FAQ):

  1. From within your Form 1095-A, continue with the interview process until you reach the screen titled Health Insurance - PTC - Summary, then click continue.
  2. On the screen titled Health Insurance - PTC - Self-Employed Health Insurance Deduction Adjustment, click the data entry field below Adjustment for the premium tax credit, and type the amount (if this screen doesn't appear, then the adjustment isn't required based on your entries).

To view Form 8962 which performs the calculations, follow these steps:

  1. From within your TaxAct return (Online), click the Print Center dropdown, then click Custom Print.
  2. In the Documents and Worksheets section, scroll down and click the checkbox next to Federal Form 8962 - [Name].
  3. Click Print, then click the PDF link that is provided for printing. Click the Print icon, then click Print in the dialog box that appears.

Note. If you see a message indicating you have not paid your return fees, click View/Pay your return fees. Continue until you have processed the payment for your product fees and then repeat the steps to print.

  1. From within your TaxAct return (Desktop), click Forms in the options bar to view Forms Explorer (if it is not already visible).
  2. Click Federal from the dropdown in Forms Explorer, then click the Worksheets dropdown (if it is not already expanded).
  3. Scroll down and click Form 8962 - Premium Tax Credit and Self-Employed Health Insurance Deduction Totals, and it will appear in Forms View.
  4. Click the Print current form icon at the top of Forms View.
  5. A print dialog box appears, so you can choose what printer to use and more options.  Click Ok when you are ready to print.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.

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