How to Fill Out Form 8962: Step-by-Step Guide

In case you need to claim PTC (Premium Tax Credit), you’ll have to file Form 8962 with your tax return to the IRS. Thus you have to know what is the purpose of this form, who exactly needs to file it, and how to fill it out. In this article, you’ll find all the information you need to know before filing this form, including step-by-step instructions on how to complete form 8962.

What Is Form 8962

Form 8962 is also called the premium tax credit form. It is used to figure out the amount of premium tax credit you are entitled to. You are eligible to claim PTC in case you purchase Marketplace health insurance. The form is to be attached to and filed with your individual tax return.

Completing the 8962 tax form will help you calculate how much PTC you can receive. It will also help you make sure that you don’t owe the IRS anything since you could’ve gotten too much in APTC (advance premium tax credit). The size of your PTC depends on the size of your family, the place of residence, and the cost of the health insurance available.

If you don’t know how to get federal form 8962, click the link and check out our article on the most convenient ways to get it.

Who Should Use Form 8962

According to the 8962 form instructions, it is used by those taxpayers that are to receive PTC. To be eligible for claiming PTC, you or a family member has to be enrolled in the Marketplace health insurance program for one month or more. This form will help you cover health insurance in your health plan, calculate the numbers in the PTC, coordinate the PTC and APTC numbers, etc. Individuals or families with moderate or low income will be able to afford Marketplace health insurance due to such refundable credit. If you purchase health insurance from some insurance company that is outside of the exchange, or you are provided with a health insurance plan at work, you don’t need this form.

How to Fill Out Form 8962

In case you don’t know the answer to the question “what does form 8962 look like,” here are some steps to perform before starting to fill it out. For additional information, you can always open the form’s official instructions.

  • Don’t forget to find out your Social Security Number;
  • Collect information about your monthly and annual contribution amount;
  • Make sure you have information about PTC and APTC numbers, etc.
Here’s a detailed instruction on how to fill out form 8962 step by step:

1. First, fill out the blanks that require your personal information including the name shown on your return as well as your Social Security Number.
2. Part 1: fill out the blanks with the information considering your monthly and annual contribution amount. This includes the size of your family, the income of your household; calculate it as a percentage of the federal poverty line according to form 8962 directions, etc.
3. Part 2: in lines 9 and 10, you have to choose the correct answer. Lines 11-26 are where you should reconcile the monthly premium amounts with your APTC received.
4. Part 3: using the information provided in Part 2, figure out any excess APTC payments in lines 27-29.
5. Part 4: here, in lines 30-33, you need to allocate policy amounts. The 34th line is for stating whether you have completed all of the allocations.
6. Part 5: you have to complete lines 35-36 to elect the alternative calculation for the year of marriage.
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How to File Form 8962

You can both fill out and mail the paper tax return or do it electronically. In the first case, you need to find the Internal Revenue Service regional office which covers your state, and mail your forms there. You’ll find the addresses where to send form 8962 on your tax return forms. And, of course, there is an option to send the form online, in case you want to. You can do it with the help of the e-file feature on the IRS website. This way is considered to be the easiest one.


Here are our answers to some of the most common questions considering Form 8962 that might interest you.
How do you qualify for the premium tax credit?
To be considered eligible for the PTC, you or some of your family members have to be enrolled in the Marketplace health insurance program at least for a month.
Can I submit Form 8962 online?
Yes, you can submit Form 8962 online by using the e-file feature on the IRS website. This way is actually much easier and quicker than mailing it.
What happens if I don't fill out Form 8962?
If you receive advanced premium tax credits, you must include Form 8962 in your tax return. If you don't do this, it is called “failure to reconcile.” The consequence is your inability to apply for PTC for the next year.
How long does it take to process Form 8962?
Processing the form doesn’t take a lot of time. Our guide and official IRS instructions will help in filling out form 8962, so you’ll probably spend an hour or less.
Printable Blank 8962 Form
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