Form 8962 – Premium Tax Credit (PTC)

Last reviewed: 2025-10-26

Use the IRS Form 8962: Calculate Premium Tax Credit Tax Form Calculator IRS Form 8962: Calculate Premium Tax Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 8962 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form 8962 is used to calculate and reconcile the Premium Tax Credit (PTC) for taxpayers who enrolled in health insurance coverage through a government Marketplace. This form helps determine your final credit based on actual income and reconciles it against any advance payments received during the year.

Key Requirements:

You (or a family member) must have been enrolled in a qualified health plan through the Health Insurance Marketplace.
You must have received Form 1095-A detailing the months of coverage and premiums paid.
The credit is based on your household income and the federal poverty line (FPL) for your family size and state.
Advance payments of the PTC (APTC) must be reconciled with actual income to avoid underpayment penalties or refund overages.

Premium Tax Credit (PTC)
Name shown on your return					Your social security number
You cannot claim the PTC if your filing status is married filing separately unless you qualify for an exception (see instructions). If you qualify, check the box.
Part I. Annual and Monthly Contribution Amount
1	Tax family size. Enter the number of exemptions from Form 1040 or Form 1040A, line 6d, or Form 1040NR, line 7d						1
2a	Modified AGI. Enter your modified AGI (see instructions)		2a		b	Enter the total of your dependents' modified AGI (see instructions)	2b
3	Household income. Add the amounts on lines 2a and 2b (see instructions)						3
4	Federal poverty line. Enter the federal poverty line amount from Table 1-1, 1-2, or 1-3 (see instructions). Check the appropriate box for the federal poverty table used.a Alaska b Hawaii c Other 48 states and DC						4
5	Household income as a percentage of federal poverty line (see instructions)						5	%
6	Did you enter 401% on line 5? (See instructions if you entered less than 100%.) No. Continue to line 7. Yes. You are not eligible to take the PTC. If advance payment of the PTC was made, see the instructions for how to report your excess advance PTC repayment amount.						6
7	Applicable Figure. Using your line 5 percentage, locate your “applicable figure” on the table in the instructions						7
8a	Annual contribution amount. Multiply line 3 by line 7. Round to nearest whole dollar amount		8a		b	Monthly contribution amount. Divide line 8a by . Round to nearest whole dollar amount	8b
Part II. Premium Tax Credit Claim and Reconciliation of Advance Payment of Premium Tax Credit
9	Are you allocating policy amounts with another taxpayer or do you want to use the alternative calculation for year of marriage (see instructions)?
	Yes. Skip to Part IV, Allocation of Policy Amounts, or Part V, Alternative Calculation for Year of Marriage.				No. Continue to line 10.
10	See the instructions to determine if you can use line 11 or must complete lines 12 through 23.
	Yes. Continue to line 11. Compute your annual PTC. Then skip lines 12–23 and continue to line 24.				No. Continue to lines 12–23. Compute your monthly PTC and continue to line 24.
Annual Calculation		(a) Annual enrollment premiums (Form(s) 1095-A, line 33A)	(b) Annual applicable SLCSP premium (Form(s) 1095-A, line 33B)	(c) Annual contribution amount (line 8a)	(d) Annual maximum premium assistance (subtract (c) from (b), if zero or less, enter -0-)	(e) Annual premium tax credit allowed (smaller of (a) or (d))		(f) Annual advance payment of PTC (Form (s) 1095-A, line 33C)
11	Annual Totals
Monthly Calculation		(a) Monthly enrollment premiums (Form(s) 1095-A, lines 21–32, column A)	(b) Monthly applicable SLCSP premium (Form (s) 1095-A, lines 21–32, column B)	(c) Monthly contribution amount (amount from line 8b or alternative marriage monthly calculation)	(d) Monthly maximum premium assistance (subtract (c) from (b), if zero or less, enter -0-)	(e) Monthly premium tax credit allowed (smaller of (a) or (d))		(f) Monthly advance payment of PTC (Form(s) 1095-A, lines 21–32, column C)
12	January
13	February
14	March
15	April
16	May
17	June
18	July
19	August
20	September
21	October
22	November
23	December
24	Total premium tax credit. Enter the amount from line 11(e) or add lines 12(e) through 23(e) and enter the total here						24
25	Advance payment of PTC. Enter the amount from line 11(f) or add lines 12(f) through 23(f) and enter the total here						25
26	Net premium tax credit. If line 24 is greater than line 25, subtract line 25 from line 24. Enter the difference here and on Form 1040, line 69; Form 1040A, line 45; or Form 1040NR, line 65. If line 24 equals line 25, enter zero. Stop here. If line 25 is greater than line 24, leave this line blank and continue to line 27						26
Part III. Repayment of Excess Advance Payment of the Premium Tax Credit
27	Excess advance payment of PTC. If line 25 is greater than line 24, subtract line 24 from line 25. Enter the difference here						27
28	Repayment limitation (see instructions)						28
29	Excess advance premium tax credit repayment. Enter the smaller of line 27 or line 28 here and on Form 1040, line 46; Form 1040A, line 29; or Form 1040NR, line 44						29
Part IV. Allocation of Policy Amounts
Complete the following information for up to four shared policy allocations. See instructions for allocation details.
Allocation 1
30	(a) Policy Number (Form 1095-A, line 2)		(b) SSN of other taxpayer		(c) Allocation start month		(d) Allocation stop month
	Allocation percentage applied to monthly amounts	(e) Premium Percentage		(f) SLCSP Percentage		(g) Advance Payment of the PTC Percentage
Allocation 2
31	(a) Policy Number (Form 1095-A, line 2)		(b) SSN of other taxpayer		(c) Allocation start month		(d) Allocation stop month
	Allocation percentage applied to monthly amounts	(e) Premium Percentage		(f) SLCSP Percentage		(g) Advance Payment of the PTC Percentage
Allocation 3
32	(a) Policy Number (Form 1095-A, line 2)		(b) SSN of other taxpayer		(c) Allocation start month		(d) Allocation stop month
	Allocation percentage applied to monthly amounts	(e) Premium Percentage		(f) SLCSP Percentage		(g) Advance Payment of the PTC Percentage
Allocation 4
33	(a) Policy Number (Form 1095-A, line 2)		(b) SSN of other taxpayer		(c) Allocation start month		(d) Allocation stop month
	Allocation percentage applied to monthly amounts	(e) Premium Percentage		(f) SLCSP Percentage		(g) Advance Payment of the PTC Percentage
34	Have you completed all policy amount allocations? Yes. Multiply the amounts on Form 1095-A by the allocation percentages entered by policy. Add all allocated policy amounts and nonallocated policy amounts from Forms 1095-A, if any, to compute a combined total for each month. Enter the combined total for each month on lines 12–23, columns (a), (b), and (f). Compute the amounts for lines 12–23, columns (c)–(e), and continue to line 24. No. See the instructions to report additional policy amount allocations.
Part V. Alternative Calculation for Year of Marriage
35	Alternative entries for your SSN	(a) Alternative family size	(b) Alternative monthly contribution amount		(c) Alternative start month		(d) Alternative stop month
36	Alternative entries for your SSN	(a) Alternative family size	(b) Alternative monthly contribution amount		(c) Alternative start month		(d) Alternative stop month

Safe Harbor for Excess APTC:

Taxpayers whose household income exceeds initial estimates may still qualify for safe harbor limits on repayment if the error was unintentional and they fall within protected thresholds. For 2024, income up to 400% of FPL may be eligible for reduced repayment caps. Carefully review the chart provided in IRS instructions.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

Tips for Accurate Filing of Form 8962

Always verify the accuracy of Form 1095-A—compare it with your actual payments and coverage months.
If income or family size changed mid-year, consider filing a correction before reconciling.
Use the IRS Simplified Calculation Method if you qualify (typically for married taxpayers without dependents).
Store all Marketplace communications and notices—these may be required if the IRS questions your calculations.

Use our Form 8962 calculator to determine whether you are eligible for additional PTC or must repay excess APTC. For full guidance, read the IRS instructions for Form 8962.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.