You must include all of your family's or household's income.Īfter filling in this information and determining your applicable federal poverty level, you can figure out the amount of credit you can claim. Your tax family generally includes you and your spouse if filing a joint return and your dependents. The first part of the form determines your annual and monthly contribution amount based on your family income and tax family size. Determining your eligibility for the creditįorm 8962 is also used to reconcile the premium tax credit you might be eligible for with any advanced premium tax credit payments you’ve already received.This form has two parts you'll need to fill out: If you purchased health insurance from the site - or your state healthcare marketplace if you live in a state that maintains one - you'll need to use Tax Form 8962. TurboTax Tip: Use IRS Form 8962 to see if you qualify for the premium to claim your Premium Tac Credit. You'll use Form 8962 to determine your full eligibility to claim the premium tax credit. The range is 100% to 400% of the federal poverty line amount for the size of your family for the current tax year.įor example, an individual earning between $13,590 and $54,360 in 2022 meets the income criteria to qualify, while a family of four qualifies with household earnings between $27,750 and $111,000.Įven if your income makes you eligible, you must meet the other qualification criteria as well. Department of Health and Human Services reports the annual federal poverty levels, which vary depending on whether you live in the contiguous 48 states and the District of Columbia, Hawaii, or Alaska. The premium tax credit program uses the federal poverty line to determine the income ranges that qualify you for the credit. You must file a joint return if you're marriedĬhanges in income and family size may affect your eligibility, so report these to the Marketplace to ensure you receive the appropriate tax credit.Another person can't claim you as a dependent on their return.Your income needs to fall within a certain range.You can't be eligible for health care coverage through alternative options such as your employer or the government.You must get your health care coverage through the Marketplace.You must meet all of the following criteria to qualify for the premium tax credit: Eligibility requirements for the premium tax credit It is important to note that for tax year 2020, the American Rescue Plan Act of 2021 suspended the requirement to repay any excess of the advance payments of the Premium Tax Credit when filing your Form 1040. But if you use less of the premium tax credit during the year than you qualified for, you'll receive the difference as a refundable credit on your return. If you use more of your premium tax credit than your final taxable income allows, you'll need to repay the difference when filing your Form 1040 at tax time. You may use some or all of this credit in advance to lower your monthly premium costs, leaving money in your pocket. If your estimated income falls between 100% and 400% of the federal poverty level for a household of your size, you can claim the premium tax credit. The amount of credit you receive depends on your estimated income and your household information, which you'll report on any application you file with the Marketplace. You can also claim the premium tax credit after the fact on your tax return with your actual income. This counts as the advance premium tax credit. You can receive this credit before you file your return by estimating your expected income for the year when applying for coverage in the Marketplace. The premium tax credit is a refundable tax credit that can help lower your insurance premium costs when you enroll in a health plan through the Health Insurance Marketplace. You must meet certain requirements to claim this refundable tax credit and file Form 8962 with your tax return.īut what is Tax Form 8962? This form reports information related to claiming an offset to the cost of purchasing health insurance through the national Health Insurance Marketplace. The premium tax credit came about after the Affordable Care Act in 2009. If you use more of the PTC than your final taxable income allows, you may need to repay the difference when you file your taxes, but if you use less than you qualify for, you may receive the difference as a refundable credit on your return.You'll need to use Tax Form 8962 to determine your eligibility for the PTC.If you’re eligible, you can use the PTC to reduce the premiums you pay during the year for your health insurance, or you can receive the full credit when you file your tax return.If your estimated income falls between 100% and 400% of the federal poverty level for a household of your size, and you purchase health insurance through the national Health Insurance Marketplace, you may be eligible for the Premium Tax Credit (PTC).
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