How to reconcile your premium tax credit

If you had a Marketplace plan and used advanced 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.

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

Follow these steps:

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

Quick view

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 2016 income. This will affect the amount of your refund or tax due.

  • Include your completed Form 8962 with your 2016 federal tax return.

Get a notice telling you to file and "reconcile" 2015 taxes?

If you’re enrolled in a 2017 Marketplace plan but didn’t file and "reconcile" your 2015 taxes, you’ll get a notice saying you may lose the financial help you’re getting for your 2017 plan. You may also get “Letter 0012C” from the IRS.

  • If you haven’t filed your 2015 tax return — or filed a return but didn’t "reconcile" the premium tax credit for all household members — you must do so immediately.

Your notice will provide details. If you confirm that you filed your 2015 tax return, you won’t need to do anything else.

Questions on 2015 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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