Form 8962 is the IRS form you use to work out your premium tax credit (PTC) and square it with the advance payments (APTC) that were sent to your health insurer during the year. As of October 2026, you must attach it to Form 1040, 1040-SR or 1040-NR if you're taking the credit or if APTC was paid for anyone in your tax family, even if you wouldn't otherwise need to file a return.
If you bought health cover through HealthCare.gov or a state exchange and the government paid part of each monthly premium, this is the form that settles up. Everything below comes from the IRS's 2025 instructions, the version used for returns filed in 2026.
Who has to file Form 8962
The IRS lists three situations. You must file it with your income tax return if any of these apply:
- You're taking the premium tax credit.
- APTC was paid for you or another person in your tax family.
- APTC was paid for someone you told the exchange would be in your tax family, and nobody included that person in a tax family.
Two details catch people out. First, you can't use Form 1040-SS if you're filing Form 8962. Second, if someone else claims you as a dependent, they file the form for your coverage, not you.
The paperwork you need first: Form 1095-A
Form 1095-A is the statement the exchange sends you. It shows the months you were covered, your enrollment premiums, the benchmark premium (the second lowest cost silver plan, or SLCSP) and the APTC paid on your behalf. For 2025 coverage, the exchange had to send it by January 31, 2026, and the IRS says to contact the exchange if it hasn't arrived by early February.
Don't file without it. Every line of the monthly calculation comes from that form, and the IRS's own list of common mistakes starts with figures copied wrongly from Form 1095-A.
How the form works, part by part
| Part | What you do there |
|---|---|
| Part I | Work out household income as a share of the federal poverty line and your expected monthly contribution |
| Part II | Figure the credit you're entitled to and compare it with the APTC that was paid |
| Part III | Work out how much excess APTC you have to pay back, using the repayment limit table |
| Part IV | Split policy amounts when a policy is shared with another tax family, for example after a divorce |
| Part V | The alternative calculation some couples can use for the year they married |
If the credit you're owed is bigger than the APTC paid, the difference is a net premium tax credit that works in your favour. If APTC was bigger, you've got excess APTC, and Part III decides how much of it comes back to the IRS.
The repayment caps for 2025 returns
This is the table most people are hunting for. The excess APTC you repay may be limited by Table 5 in the instructions, based on your household income as a percentage of the federal poverty line (Form 8962, line 5):
| Line 5 (percentage of poverty line) | Single | Any other filing status |
|---|---|---|
| Less than 200 | $375 | $750 |
| At least 200 but less than 300 | $975 | $1,950 |
| At least 300 but less than 400 | $1,625 | $3,250 |
| 400 or more | No cap: repay the full excess | No cap: repay the full excess |
These are the figures in the 2025 instructions as of October 2026. If you're married but filing separately, the caps apply to each of you separately, based on the household income on each return. And people who aren't lawfully present in the US can't use these limits for their own coverage.
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The changes in the 2025 instructions
- A month can still count as a coverage month if part of the premium went unpaid, as long as enough was paid, including APTC, to stop the cover being terminated.
- For tax year 2025, people with household income above 400% of the federal poverty line may be allowed a PTC.
- For family members of an employee, affordability of job-based cover is based on the employee's cost to cover the whole family, not just themselves.
- If you had a QSEHRA from a small employer and it was affordable for a month, no PTC is allowed for that month.
How to avoid a nasty bill next April
- Report changes to the exchange as they happen: income, address, a new job, losing other cover, a birth, a marriage or a divorce.
- Check Form 1095-A against your own records the day it arrives.
- If the SLCSP premium on the form is missing or wrong, use the IRS's instructions for working out the right benchmark before you file.
- Run the numbers before you file so the excess APTC figure isn't a surprise.
If you work for yourself, your income can swing a lot during the year, and that's exactly when APTC drifts away from the credit you end up entitled to. Updating your estimate with the exchange mid-year is the simplest way to shrink the bill. It's also worth checking whether you need to make estimated tax payments so the two don't collide.
The verdict
Form 8962 isn't optional once APTC has been paid: you must attach it even in a year you wouldn't otherwise file. Wait for Form 1095-A, copy it carefully and look at line 5 early. If you need more time to pull it together, an extension with Form 4868 buys time to file, though not to pay.
Frequently asked questions
Do I need Form 8962 if I didn't get any advance payments?
Only if you want to take the premium tax credit. You must file it if APTC was paid for anyone in your tax family, or if you're claiming the PTC.
What happens if my income was higher than I told the exchange?
You'll probably have excess APTC. Part III works out what you repay, and for 2025 returns the amount may be capped by Table 5 unless line 5 is 400 or more.
Where do I find the numbers for Form 8962?
On Form 1095-A from the exchange. It shows coverage months, enrollment premiums, the SLCSP premium and the APTC paid.
Can I file Form 8962 if someone claims me as a dependent?
No. The person who claims you files Form 8962 for your coverage and repays any excess APTC.
