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. Go to our American Rescue Plan - Premium Tax Credit FAQ for more 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, 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:
You need to view the worksheet as a print PDF; if you need help, go to our Printing Your Return and Individual Forms FAQ.
Click Form 8962 to view the print PDF or to view it in forms view.
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.