If you had a Marketplace plan and used advance payments of the premium tax credit (APTC) to lower your monthly payment, you’ll have to “reconcile” when you file your federal taxes. This means you’ll compare 2 figures:
The amount of premium tax credit you used in advance during the year. (This was paid directly to your health plan so your monthly payment was lower.)
The premium tax credit you actually qualify for based on your final income for the year.
Any difference between the two figures will affect your refund or tax owed.
Follow these steps:
Get your Form 1095-A.
Use the information from your 1095-A form to complete Part II of Form 8962, using the table below as a guide.
|What information do I need from my 1095-A?||Where do I find it on my 1095-A?||Where do I enter it on Form 8962?||See how|
Part III: Column A
Part II: Column a
Second lowest cost Silver plan (SLCSP) premium
Part III: Column B
Part II: Column b
Advance payment of premium tax credit
Part III: Column C
Part II: Column f
Complete all sections of Form 8962. On Line 26, you’ll find out if you used more or less premium tax credit than you qualify for based on your final 2021 income. This will affect the amount of your refund or tax due.
Include your completed Form 8962 with your 2021 federal tax return.
If you were enrolled in a 2021 Marketplace plan but didn’t file and "reconcile" your 2020 taxes, you’ll get a notice saying you may lose the financial help you’re getting for your 2022 plan. You may also get “Letter 0012C” from the IRS.
Your notice will provide details. If you confirm that you filed your 2020 tax return, you won’t need to do anything else.