Form #8962  Premium Tax Credit 

is used to reconcile the APTC Advance Premium Tax Credit – subsidy with your IRS # 1040.

If you got too high a subsidy or too low, it gets finalized at tax time. If your subsidies were too high you may have to pay penalties.  See form 2210 Underpayment of tax and the instructions for more details.   

Instructions  HTML  *  pdf  *

but first you need the    Proof of Coverage Form 1095 A from Covered CA

and  B  if applicable – like if you had Covered CA part of the year and other coverage the rest of the year, from an Insurance Company, Government – Like Medicare or Medi-Cal or your Employer.

IRS Instructions to file the RIGHT forms, if there are ANY issues or problems —- IRS —  Affordable Care Act Tax Provisions

When you are done completing # 8962, enter the calculation on line 46 and/or 69 of 1040 form.

2018 Schedule 1  Additional Income & Adjustments to Income

If you didn’t file your 1040 or 8962 for 2017 – you’ll be getting a letter about that!

Explanation of differences in new 2018 tax forms

Do you think this process is complicated?  See what my CPA thinks.

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Kaiser Permanente Reminder & FAQ’s to do 2014 Taxes

Will Donald’s Executive order of 1.20.2017 eliminate having to pay back any excess APTC?  Blog Insure Me 1.23.2017

How to fill out the exemptions part?

2017 Report on how well the IRS did on Verifying PTC Premium Tax Credits for the 2016 Tax year

Summary from Insure Me

GAO Report to Congressional Committees 7.2017 81 pages  *  Summary – Modern Health Care


Molina Health Care reports that the IRS states that 57% of tax payers  may lose the credits as they haven’t filed form 8962 or filed their taxes! Email dated 7.30.2015   IRS   New York Times 8.4.2015

12 comments on “8962 Premium Tax Credit APTC Form attaches to Form 1040

  1. I didn’t make changes to my subsidy amounts, income, family filing status, dependents, etc. due to illness.

    What is the criteria to get an exemption and fix the issues now?


      Fear of IRS.
      Taxpayer who had been laid off was overwhelmed by Schedule C instructions. As a result he just shut down and stopped filing for several years as the fear and anxiety mounted. He hired a CPA (Weston) to get his books in order. Once all returns were filed and taxes assessed, the IRS abated all penalties, because they agreed that the taxpayer had no malicious intent.

      Health issues.
      Prolonged illness made it difficult to concentrate, and short-term memory suffered.

      Grief due to death of a close family member.

      House was robbed and family computer with all records was stolen


      But before taxpayers go groveling with excuses, they have another, guilt-free option: the first-time penalty abatement waiver. Apparently the IRS has a warm and fuzzy side, because it believes that everyone is entitled to one mistake. So if you’ve got a clean record — you’ve filed (or filed a valid extension for) all required returns and are all paid up — you can qualify for the FTA waiver.
      USA Today


      Reasonable Cause

      The key word here is “reasonable,” and it doesn’t include, “I forgot.” If you ask for a waiver for reasonable cause, you need to establish the facts for the issue you are having that keeps you from taking care of your taxes, and you need to produce documentation to back it up.

      Fire, natural disaster, casualty, or other serious disturbances count as reasonable cause. Plenty of people in the U.S. have been hit with extreme weather, devastating forest fires, and other issues over the past year or so. If your home or business is in a riot zone, you may receive a waiver since having your structure blocked off by police tape is probably considered a pretty serious disturbance.
      If you are unable to obtain your records, the IRS may grant a waiver.

      Death, serious illness, incapacitation, or unavoidable absence of you, the taxpayer, or a member of your immediate family is considered reasonable cause. It’s pretty cool of the government to acknowledge that dead people would have a tough time taking care of their taxes.
      Other reasons establishing you used all “ordinary business care and prudence” to meet your Federal tax obligations but just couldn’t do it. “I forgot” does not, unfortunately, count as reasonable care and prudence. Neither does lack of funds unless the reason for the lack meets reasonable cause criteria.

      Top Tax

      IRS Website on Penalty Relief due to Reasonable Cause

    • One of the problems was that our child moved out, got a good job and filed his own taxes. Is there a way we can fix that on our tax return?

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