Form 8962 - Excess Advance Premium Tax Credit Repayment

The American Rescue Plan, signed into law on March 11, 2021, includes a provision that eliminates the requirement to repay excess advance premium tax credits for tax year 2020. Click here for additional information.

The amount of excess premium tax credit repayment, calculated on Line 29 of Federal Form 8962 Premium Tax Credit (PTC), has a different calculation if there was a self-employed health insurance deduction claimed on Line 16 of Schedule 1 (Form 1040) Additional Income and Adjustments to Income.

Per IRS Instructions for Form 8962, starting on page 15:

If you are self-employed and are claiming the self-employed health insurance deduction, see Self-Employed Health Insurance Deduction and PTC in Pub. 974 for the amount to enter on line 28.

The instructions for calculating the self-employed health insurance deduction are explained in IRS Publication 974 Premium Tax Credit (PTC), starting on page 56. On Worksheet X (as explained in the publication), there is a calculation on Line 25 of Part III: Repayment Limitation that reflects the amount that must be repaid.

To review the worksheets that perform the calculation of the repayment limitation:

  1. From within your TaxAct Online return, click Print Center down the left to expand, then click Custom Print.
  2. Click Federal Form 8962 - Taxpayer/Spouse. You may need to scroll down in the section to locate the item.
  3. Click Print, then click the PDF link. Click the printer icon or the save icon (available when you hover your mouse over the PDF form) to print or save the PDF copy.

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

  1. Start your TaxAct Desktop program, then click Forms in the top left corner.
  2. Click to expand the Federal folder, then click to expand the Worksheets folder.
  3. Click to expand the Form 8962 - Premium Tax Credit and Self-Employed Health Insurance Deduction Totals folder.
  4. Double-click the form listed under that folder, then click the pink Printer icon above the form on the right side of your screen.

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.