Enter the SSN of the taxpayer with whom you are allocating policy amounts. If you have completed your required allocations of policy amounts shown on Forms 1095-A using lines 30 through 33, check the Yes box on line 34. 974 until you have completed Table 4 to determine whether you meet the requirements to elect the alternative calculation. Poverty and Substance Use. You or an individual in your tax family enrolled in a qualified health plan through a Marketplace. 722 000 people were affected by income poverty. See Pub. The figure used to determine eligibility for premium tax credits and other savings for Marketplace health insurance plans and for Medicaid and the Children's Health Insurance Program (CHIP). An individual enrolled in the coverage died during 2022. In April, Ryan took a new job and enrolled in his employers coverage for May through December. Use, Henry enrolled himself, his spouse Cara, and their two dependent children, Heidi and Matt, in a policy for 2022 purchased through a Marketplace. Enter your modified AGI on line 2a. 974. The children become eligible for and enroll in government-sponsored health coverage and disenroll from the qualified health plan, effective August 1. Joe has excess APTC of $1,357 (the excess of the APTC of $5,716 over the PTC of $4,359). For example, 2022 federal poverty guideline for a family of four is $27,750 in most of the U.S. Generally, families can qualify for the Premium Tax Credit with an income of . Deductions for health insurance premiums. 974. You will need Form 1095-A to complete Form 8962. Your SLCSP premium is reported in Part III, column B, lines 21 through 32, of Form 1095-A. If your household income is less than 100% of the federal poverty line, and you do not meet the requirements under Estimated household income at least 100% of the federal poverty line or Alien lawfully present in the United States, earlier, you are not an applicable taxpayer and you are not eligible to take the PTC. Nancy takes into account $5,000 ($10,000 x 0.50) of the enrollment premiums in figuring her PTC. However, employer-sponsored coverage is not considered affordable if, when you or a family member enrolled in a qualified health plan, you gave accurate information about the availability of employer coverage to the Marketplace, and the Marketplace determined that you were eligible for APTC for the individuals coverage in the qualified health plan. If you got married in a month other than December, your applicable SLCSP premium may not be the same for every month. If you were married at the end of 2022 but are filing separately from your spouse, the repayment limitations shown in Table 5 apply to you and your spouse separately based on the household income reported on each return. in the Instructions for Form 1040-NR. (Some states may report -0- or leave column B blank on the Form 1095-A when no APTC is paid.) Form 8962: Premium Tax Credit (PTC) is also integrated into our comprehensive US Tax Calculator where you can complete and save your calculations for later use. You must repay some or all of the APTC entered on line 11, column (f). See Example 1 and Example 2, later. Household income below 100% of the federal poverty line. 974. In January, Keith enrolls Ben, Grace, and Max in a qualified health plan beginning in January. Even if you and other members of your tax family had the opportunity to enroll in a plan that is MEC offered by your employer for 2022, you are considered eligible for MEC under the plan for a month only if the offer of coverage met a minimum standard of affordability and provided a minimum level of benefits, referred to as minimum value. The coverage offered by your employer is generally considered affordable for you and the members of your tax family allowed to enroll in the coverage if your share of the annual cost for self-only coverage, which is sometimes referred to as the employee required contribution, is not more than 9.61% of your household income. You were enrolled in the qualified health plan for all 12 months during 2022. By checking this box, you are certifying that you qualify for an exception to the requirement to file a joint return with your spouse. You cannot deduct the portion of your health insurance premium on your tax return that is paid for by the PTC or APTC (after you determine how much of any excess APTC you must repay). Allocation Situation 2. See the instructions for Line 9, later. Enter the result of $67,020 on Form 8962, line 4. Use, Your coverage family includes all individuals in your, The enrollment premiums are the total amount of the premiums for the month, reduced by any premium amounts for that month that were refunded, for one or more, The applicable SLCSP premium is the second lowest cost silver plan premium offered through the Marketplace where you reside that applies to your, Your monthly contribution amount is used to calculate your monthly credit amount. If individuals in your coverage family enrolled in separate policies in the same state, you will receive a Form 1095-A for each policy. 12. If you are considered married for federal income tax purposes, you may be eligible to take the PTC without filing a joint return if one of the two exceptions below applies to you. Children from households making up to 130 percent of the federal poverty line are provided free meals at school every day; those from households making between 130 percent and 185. Mistakes in completing Form 8962 can cause you to pay too much tax, delay the processing of your return or refund, or cause you to receive correspondence from the IRS. The Marketplace sends copies to individuals to allow them to accurately file a tax return taking the PTC and reconciling APTC. Enter the amount from line 11(f) or add lines 12(f) through 23(f) and enter the total. If individuals in your coverage family enrolled in qualified health plans in different states, add together the amounts from column B of Forms 1095-A from each state and enter the total on Form 8962, lines 12 through 23, column (b). Taxpayers tax return including income of a dependent child. If you completed Part IV, check the No box on line 10, skip line 11, and enter the amounts from lines 1 through 12 of this worksheet in the lines for the corresponding months and columns of lines 12 through 23 of Form 8962. It is the amount of your household income you would be responsible for paying as your share of premiums each month if you enrolled in the applicable SLCSP. 150.0 percent up to 200.0 percent. When completing line 11 or lines 12 through 23, complete only column (f). John and Carol file separate returns for 2022. Gary and Jim are applicable taxpayers and each can take the PTC. 6 If you're a family of four living in the continental US and applying for 2022 health insurance coverage, your FPL (from the 2021 FPL table) is $26,500. Use Worksheet 1-2 to figure these dependents combined modified AGI. Check your math, especially when completing line 11, or lines 12 through 23, and entering the totals on lines 24 and 25. Review your entries on line 11, or lines 12 through 23, if your entries on lines 24 and 25 seem higher than expected (for example, greater than $25,000). For instance, in 2021 the poverty guideline in the 48 contiguous states is an annual income of $26,500 for a family of four. The struggle to raise children on such a meager income is not a rare circumstance among U.S. families, especially those with young children. For more information about who is treated as lawfully present for this purpose, visit HealthCare.gov. "Opportunity for All" is a whole-of-government strategy that involves actions and investments that span across the federal government. Coverage in the individual market outside the Marketplace. Your PTC is available to help you pay only for the coverage of the individuals included in your coverage family. The Pathway to Income Equity pilot program mirrors similar programs throughout the state that provide guaranteed, relatively unconditional payments to households and families experiencing poverty. Carol claims Mark as her dependent. A) She has no expected contribution. However, you may be able to take the PTC if you meet either of the following conditions. What percentage of the premium cost is her expected contribution toward the premium? Joes PTC for 2022 is $4,359 (the lesser of $4,359, the excess of Joes applicable SLCSP premium of $9,600 minus the contribution amount of $5,296 ($66,196 x 0.0800), or $10,400, Joe's enrollment premiums). When Joe completes Part IV of Form 8962, he enters Alices SSN on line 30, column (b), and enters 0.80 in columns (e), (f), and (g). If APTC was paid for any individuals in your tax family, go to line 9. If you are filing Form 1040-NR, you should include your dependents in your tax family only if you are a U.S. national; a resident of Canada, Mexico, or South Korea; or a resident of India who was a student or business apprentice. You are generally not allowed a monthly credit amount for the month if any part of the enrollment premiums for which you are responsible that month has not been paid by the due date of your tax return (not including extensions). On his Form 8962, Part IV, line 30, Michael enters Colleens SSN in column (b) and enters 0.50 in column (g). If both (1) and (2) above apply, check the Yes box. Based on Your Income. If you are married and filing a joint return, enter the name that appears first on your return. Adjustments include deductions for conventional IRA contributions, student loan interest, and more. Report changes in circumstances when you re-enroll in coverage and during the year. If you need to allocate policy amounts and are also using the alternative calculation for year of marriage, follow the instructions in Table 3 and complete Part IV before you follow the instructions for Table 4 and complete Part V. If you are not allocating policy amounts and not using the alternative calculation for year of marriage, check the No box and go to line 10. This is a drop of almost five percentage points over the past 10 years, when 18.0% of the population lived in poverty. Therefore, 33% of the enrollment premium, the applicable SLCSP premiums, and APTC are allocated to Stephanie and 67% of these amounts are allocated to Keith. Your tax family generally includes you, your spouse if you are filing a joint return, and your dependents. See. If you or a family member isn't lawfully present in the United States and was enrolled in a qualified health plan, see Individuals Not Lawfully Present in the United States Enrolled in a Qualified Health Plan in Pub. In addition to qualified health plans and other coverage in the individual market, MEC includes: Most coverage through government-sponsored programs (including Medicaid coverage, Medicare Part A or C, the Childrens Health Insurance Program (CHIP), certain benefits for veterans and their families, TRICARE, and health coverage for Peace Corps volunteers); Most types of employer-sponsored coverage; and. You may need to allocate policy amounts under a qualified health plan using different rules for different months if you had a change in circumstance. A taxpayer who includes the gross income of a dependent child on the taxpayers tax return must include on Worksheet 1-2 the childs tax-exempt interest and the portion of the childs social security benefits that is not taxable. The Marketplace determined that Kim and Chris were eligible for coverage under CHIP. Use Worksheet 1-1 and Worksheet 1-2 to determine your modified AGI. You otherwise qualify as an applicable taxpayer (except for the federal poverty line percentage). You must repay the APTC allocated to you subject to the limit on line 28 because you are not an applicable taxpayer. For 1 or more months of marriage, you and your former spouse were enrolled in the same qualified health plan, or you or an individual in your tax family (as shown on your tax return) was enrolled in the same policy as your former spouse or as an individual in your former spouse's tax family. Enter the annual enrollment premiums from Form 1095-A, line 33, column A. You are living apart from your spouse at the time you file your 2022 tax return. For example, the poverty level for a household of four in 2022 is an annual income of $27,750. 974 provides a calculation necessary to figure the repayment limitation if an individual not lawfully present is enrolled with one or more family members who are lawfully present for 1 or more months of the year. For example, a married couple with two children earning $45,000 a year would divide their household income by the poverty line for a family of four $27,750 in 2022 to calculate their income at 162 percent of the federal poverty line. See, For more details on eligibility for MEC, including additional special eligibility rules, see, You must be an applicable taxpayer to take the PTC. If the APTC is more than your PTC, you have excess APTC and you must repay the excess, subject to certain limitations. Multiply $5,220 by 3 and add the result of $15,660 to $51,360. Are you filing a joint return with your spouse for 2022? See Pub. Otherwise, leave column (e) blank. Combine them even if one or both of them are negative. Today, 73 percent of extremely low-income renters defined as households whose incomes are at or below the poverty line or 30 percent of their area's median income pay more than half of . Alternative Calculation for Year of Marriage, If Part IVAllocation of Policy Amounts applies to you, do, Your SLCSP premium is the same for every month of 2022. Individuals who are not lawfully present. An individual in your tax family was enrolled in your qualified health plan for some but not all of 2022. Henry claims Heidi as a dependent on his tax return. You allocated the policy amounts under Allocation Situation 4. Washington's elderly population is the only group to show a significant long-term decline in poverty. Your employer may have sent you a Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, with information about the coverage offered to you, if any. As a result, you should complete Form 8962 only for health insurance coverage in a qualified health plan purchased through a Marketplace. Defined as paying more than 30% of household income for housing costs (rent or mortgage and utilities). You must file Form 8962 to compute and take the PTC on your tax return. The median after-tax income of Canadian families and unattached individuals was $62,900 in 2019, up 0.5%, which was not a statistically significant change over 2018. 974 or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. Enter the amount from column B of only one Form 1095-Ado not add the amounts from each form. Your Form 1095-A may include amounts in dollars and cents. Enter the smaller of line 27 or line 28. If APTC was paid for the coverage in a qualified health plan of an individual who was not lawfully present, the repayment limitation does not apply to APTC paid for individuals who are not lawfully present. The poverty guidelines. The allocation percentage you use and that you put on line 30 of Form 8962 is the percentage of the policy amounts for the coverage that you will use to compute your PTC and reconcile APTC. Other changes affecting the composition of your tax family. John and Carol enrolled in a qualified health plan for 2022. John enrolls in a silver plan. Note. The enrollment premiums are the total amount of the premiums for the month, reduced by any premium amounts for that month that were refunded, for one or more qualified health plans in which any individual in your tax family enrolled. 974. You answered Yes to all five questions in Table 4. This number is used to calculate your contribution amount. For example, if you were enrolled in a policy with your former spouse from January through June, enter 06 in column (d). If your allocation situation requires you to allocate the applicable SLCSP premium on Form 1095-A, lines 21 through 32, column B, enter your allocation percentage for that policy in column (f). For examples of what documentation to keep, see Pub. poverty measure, members of a household are considered poor if their household income is less than 50 percent of the median household income in that country. Throughout these instructions, a qualified health plan is also referred to as a policy. If you need health coverage, visit HealthCare.gov to learn about health insurance options that are available for you and your family, how to purchase health insurance, and how you might qualify to get financial assistance with the cost of insurance. However, if a Marketplace made a determination that you or a family member was ineligible for Medicaid or CHIP and was eligible for APTC when the individual enrolls in a qualified health plan, the individual is treated as not eligible for Medicaid or CHIP for purposes of the PTC for the duration of the period of coverage under the qualified health plan (generally, the rest of the plan year), even if your actual 2022 income suggests that the individual may have been eligible for Medicaid or CHIP. Keith and Stephanie are married at the beginning of 2022 and have three children, Ben, Grace, and Max. If you received a Form 1095-A with the VOID box checked at the top of the form, that means you previously received a Form 1095-A for the policy shown in Part I that was sent in error. This is compared to 8.2 percent of White people, and 8.1 percent of Asian people. If APTC is being paid for an individual in your tax family (described later) and you have had certain changes in circumstances (see the examples later), it is important that you report them to the Marketplace where you enrolled in coverage. Use Table 3 to determine which allocation rule to use for each month. The other tax family received a Form 1095-A for the policy that includes a member of your tax family. Was anyone in your tax family enrolled in a qualified health plan before your first full month of marriage? Carol looks up the SLCSP premium that applies to her and Mark. Monthly APTC of $400 was paid for her, for a total of $3,200. To be eligible for the premium tax credit, your household income must be at least 100 percent and, for years other than 2021 and 2022, no more than 400 percent of the federal poverty line for your family size, although there are two exceptions for individuals with household income below 100 percent of the applicable federal poverty line. No APTC was paid for your coverage. In January, Keith enrolls Ben, Grace, and Max in a qualified health plan beginning in January. They determine that the applicable SLCSP premium for the coverage family of one (Susan) for August through December is $400 each month. Use the monthly amounts from Form 1095-A, lines 12 through 32 (columns A, B, and C), when completing lines 12 through 23. They do not have a change in circumstance during the year. Henry purchased different health insurance for himself through a Marketplace for July through December. For example, if your family size is 11, you have 3 additional people. Because John is not in Carols tax family, he is not in her coverage family, which consists of Carol and her dependent, Mark, for purposes of determining her applicable SLCSP premium. If you completed Part VAlternative Calculation for Year of Marriage, use the instructions in Pub. If no APTC was paid for your coverage, Form 1095-A, Part III, column B, may be wrong or blank or may report your applicable SLCSP premium as -0-. All the facts and circumstances are considered in determining whether an individual is abused, including the effects of alcohol or drug abuse by the victims spouse. The SLCSP premium is not the same as your enrollment premium, unless you enroll in the applicable SLCSP. 974 for the entries to make for your pre-marriage months. For each policy to which (1) and (2) above apply, follow the instructions in Table 3 to determine which allocation rule applies for that qualified health plan. If you got married in 2022 and you and your spouse (or individuals in your tax family) were enrolled in separate qualified health plans during months prior to your first full month of marriage, add together the amounts from Form 1095-A, column B, for each plan (or plans) and enter the total.