How to reconcile your premium tax credit

If you had a Marketplace plan and used premium tax credits 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.

If there’s a difference between the two figures, this will affect the amount of your refund or taxes owed.

IMPORTANT: Did you get a corrected 1095-A? If you already filed your taxes, you may need to file an amended return using the updated form. Get information about amending returns at IRS.gov.

Step-by-step guide to reconciling your premium tax credit

Follow these steps:

  • Get your Form 1095-A

  • Print Form 8962 (PDF) and instructions (PDF).

  • Use the information from your 1095-A form to complete Part II of Form 8962, using the table below as a guide.

How to enter information from your 1095-A on Form 8962
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

Enrollment Premiums

Part III: Column A

Annual amount: line 33

Monthly amounts: lines 21 — 32

Part II: Column a

Annual amount: line 11

Monthly amounts: lines 12 — 23

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Second lowest cost Silver plan (SLCSP) premium

Part III: Column B

Annual amount: line 33

Monthly amounts: lines 21 — 32

Part II: Column b

Annual amount: line 11

Monthly amounts: lines 12 — 23

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Advance payment of premium tax credit

Part III: Column C

Annual amount: line 33

Monthly amounts: lines 21 — 32

Part II: Column f

Annual amount: line 11

Monthly amounts: lines 12 — 23

Quick view

  • 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 2015 income. This will affect the amount of your refund or tax due.

  • Include your completed Form 8962 with your 2015 federal tax return.

Get a notice telling you to file and "reconcile" 2014 taxes?

If you’re enrolled in a 2016 Marketplace plan but didn’t file and "reconcile" your 2014 taxes, you’ll get a notice saying you may lose the financial help you’re getting for your 2016 plan.

  • If you haven’t filed your 2014 tax return — or filed a return but didn’t "reconcile" the premium tax credit for all household members — you must do so immediately.
  • If you don’t, you could lose the financial assistance you’re getting for 2016 and would have to pay full price for your Marketplace plan.

Your notice will explain in more detail. If you’ve confirmed that you filed your 2014 tax return, you won’t need to do anything else.

Questions on 2014 taxes?

How to move enrollment premium info to Form 8962

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How to move Second Lowest Cost Silver Plan (SLCSP) Premium info to Form 8962

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How to move Advance Payment of Premium Tax Credit info to Form 8962

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