Form 8962

Form 8962

Net Premium tax credit

What is net premium tax credit?
⦁ 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.
⦁ If you or a member of your family enrolled in health insurance coverage for 2021 through a Marketplace, you should have received Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace. Form 1095-A shows the months of coverage purchased through the Marketplace.

Eligibility requirements for the premium tax credit
You must meet all of the following criteria to qualify for the premium tax credit:
⦁ You must get your health care coverage through the Marketplace
⦁ You can’t be eligible for health care coverage through alternative options such as your employer or the government
⦁ Another person can’t claim you as a dependent on their return
⦁ You must file a joint return if you’re married
⦁ Your household income must fall below 400% of the federal poverty level for your family size. Your income must also be above the range for Medicaid eligibility (or above 100% of the FPL in states that didn’t expand Medicaid for adults). For tax years 2021 and 2022, you can still qualify with income of 400% and higher. Here’s the 100% level for 2021:
• Family of one — $12,760
• Family of two — $17,240
• Family of four — $26,200
Even if your income makes you eligible, you must meet the other qualification criteria as well. You’ll use Form 8962 to determine your full eligibility to claim the premium tax credit.
What is Tax Form 8962?
If you purchased health insurance from the site you’ll need to use Tax Form 8962. This form has two parts you’ll need to fill out:
⦁ Determining your eligibility for the credit
⦁ Claiming the premium tax credit
Form 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.

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