Beginning tax year 2022, Form 8885 and its instructions have been discontinued by the IRS. They check the Yes box on Form 8962, line 10, and complete line 11 because for each of columns A and B there is an amount for all 12 months and the amounts did not change. Alternative Calculation for Year of Marriage. Currently, 11 percent of young children (0-9 years) live in households with incomes below 50 percent of the federal . For more information, see, Qualified Small Employer Health Reimbursement Arrangement, Other changes affecting the composition of your, For more information on how to report a change in circumstances to the Marketplace, see, For additional information about the tax provisions of the Affordable Care Act (ACA), see, The PTC is a tax credit for certain people who enroll, or whose family member enrolls, in a, APTC is a payment during the year to your insurance provider that pays for part or all of the premiums for a qualified health plan covering you or an individual in your tax family. 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. Your family size equals the number of qualifying individuals in your tax family (including yourself). benefit equally from the combined income of the household. Change in circumstances affecting SLCSP. For purposes of the PTC, a qualified health plan is a health insurance plan or policy purchased through a Marketplace at the bronze, silver, gold, or platinum level. Adjusted gross income appears on IRS Form 1040, line 11. Do not round; instead, multiply this number by 100 (to express it as a percentage) and then drop any numbers after the decimal point. 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. Poverty in the United States Single people in the United States making less than 12,880 U.S. dollars a year. If you are required to use lines 12 through 23 of Form 8962, enter the amounts from lines 1 through 12 of this worksheet in the lines for the corresponding months and columns on Form 8962. According to Table 3, Gary and Jim use the rules under Allocation Situation 3. If you are offered an individual coverage HRA, see Individual coverage HRAs , later, for more information on whether you can claim a PTC for you or a member of your family for Marketplace coverage. Other situations where a policy is shared between two tax families. On his Form 8962, Part IV, line 30, John enters Carols SSN in column (b) and enters 0.50 in column (g). See Form 1095-C, line 14, and the, Don was eligible to enroll in his employers coverage for 2022 but instead applied for coverage in a qualified health plan through the Marketplace for coverage in 2022. 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. For additional information and resources, see Pub. 974. You must repay the APTC allocated to you subject to the limit on line 28 because you are not an applicable taxpayer. In addition, if you or your family member enrolls in employer-sponsored coverage for a month, you or your family member is considered eligible for employer-sponsored coverage for that month, even if the coverage does not satisfy the affordability and minimum value standards. Importance of FPLs and FBRs to Medicaid Eligibility? The facts are the same as in Example 3, except that only Colleen is covered under the policy. It is important to note that the poverty guidelines can vary by state, so it is best to check with your local Department of Health and Human Services . Scroll down to the tables or use the calculators below Use the 2023 Poverty Level Calculator The Marketplace determined that Kim and Chris were eligible for coverage under CHIP. If 100% of the policy amounts are allocated to you, check Yes on line 9 and complete Part IV by entering 100 in the appropriate box(es) for your allocation percentage. If you have an amount on line 29, be sure to enter that amount on Schedule 2 (Form 1040), line 2. Alien lawfully present in the United States. Lower-income households have incomes lower than two-thirds of the median, and upper-income households have incomes that are more than double the median. More than 45 million people, or 14.5 percent of all Americans, lived below the poverty line last year, the Census Bureau reported on Tuesday. APTC was paid for the coverage of one or more months during 2022. Melissa will receive a Form 1095-A reporting her coverage for May through December. The Form 1095-A furnished by the Marketplace to Gary shows an enrollment premium of $15,000 for the year and the SLCSP premium that applies to a coverage family that incorrectly includes Gary, Gary's daughters, and Jim. Joe has excess APTC of $1,357 (the excess of the APTC of $5,716 over the PTC of $4,359). Enter your allocation percentage as a decimal rounded to two places (for example, for 67%, enter 0.67). See Coverage after employment ends under Employer-Sponsored Plans in Pub. To be an applicable taxpayer, you must meet the requirements under (a) and (b) below. For additional requirements and more details, see Applicable taxpayer, later. The percent of the population below the federal poverty line. If APTC was paid for any individuals in your tax family, go to line 9. [12] The annual enrollment premium for the plan is $13,000. Examples of changes in circumstances that may affect your applicable SLCSP premium include the following. $16,400 a household of two people with a householder 65 years or older with no children. Melissa must add this amount to her APTC of $3,200 for her single coverage. If you are a victim of domestic abuse or spousal abandonment, you can file a return as married filing separately and take the PTC for 2022 if all of the following apply to you. Confirm your entries for alternate start and stop months. You or an individual in your tax family enrolled in a qualified health plan through a Marketplace. As a result, the applicable SLCSP premium reported on Form 1095-A for August through December is incorrect and Mike and Susan must determine the correct applicable SLCSP premium for these months by following the instructions in Pub. 974. If APTC was paid for you or an individual in your, The Marketplace determined your eligibility for and the amount of your 2022 APTC using projections of your income and the number of individuals you certified to the Marketplace would be in your tax family (yourself, your spouse, and your dependents) when you enrolled in a, You will need Form 1095-A to complete Form 8962. 974, Premium Tax Credit. If you were covered under an individual coverage HRA for 2022, you are not allowed a PTC for your 2022 Marketplace health insurance. divide by the poverty guideline income level for your household size multiply that number by 100 add a percentage sign For example, if your income is $35,000 and you are in a three-person household, divide $35,000 by $20,780 (100 percent of FPL for a family of three in 2018), which equals about 1.68. Then, complete the rest of the form to determine how much you must repay. You can also visit, For additional requirements and more details, see, Your family size equals the number of qualifying individuals in your tax family (including yourself). That individual was not eligible for minimum essential coverage (MEC) for the month, other than coverage in the individual market. Also, if you had a change in circumstances during 2022 that you did not report to the Marketplace, the SLCSP premium reported in Part III, column B, may be wrong. Generally, there are two situations where your SLCSP premium may not be accurately reflected on your Form 1095-A. Health reimbursement arrangements (HRAs). If you have more than one Form 1095-A, enter the amount as follows. B) 8.5%. When completing line 11 or lines 12 through 23, complete only column (f). Instead of allocating the applicable SLCSP premium, Nancy will enter the applicable SLCSP premium that applies to Nancy. Use the amounts shown on Form 1095-A, line 33 (columns A, B, and C), for completing line 11. When devised in the 1960s, the OPM came to roughly 50 percent of median household income, adjusted for family size. Gaining, losing, or other changes to employment. If you shared a policy with another taxpayer and you are not making an allocation in all three columns, (e), (f), and (g), leave the column blank that does not apply. Gender, . The enrolled individual is lawfully present in the United States and is not eligible for Medicaid because of immigration status. For individuals enrolled in qualified health plans in different states, add together the amounts from column B of the Forms 1095-A from each state and enter the total on Form 8962, line 11, column (b). Enter the annual enrollment premiums from Form 1095-A, line 33, column A. Use Worksheet 1-2 to figure these dependents combined modified AGI. * Enter the result here and on line 5 of Form 8962. The Marketplace determination does not apply, however, for the months September through December of 2022 because Don did not provide information to the Marketplace about his new employers offer of coverage. 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. Was APTC paid for anyone in your tax family during 2022? 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. It is issued by the U.S. Department of Health and Human Services (DHHS) every year in January, and it uses the household . Sophia is claimed as a dependent by her grandfather, Mike. Therefore, you and the other tax family must allocate the enrollment premiums, the APTC, and the applicable SLCSP premium so that each family is able to compute their PTC and reconcile their PTC with the APTC paid for their coverage. However, column B reports $650 for December on line 32 because an individual included in Lee's coverage family was eligible for MEC (other than coverage in the individual market) for the entire month of December and Lee reported the change to the Marketplace. When this happens, the taxpayer receiving the Form 1095-A should provide a copy to the other taxpayers. Your Form 1095-A may include amounts in dollars and cents. In that case, you cannot file a joint return but may be able to take the PTC on your separate return. You check the box on your Form 8962 to certify that you are a victim of domestic abuse or spousal abandonment. Notice 2017-67 is available at IRS.gov/irb/2017-47_IRB#NOT-2017-67. If your entry on Form 8962, line 5, is 400 or more, there is no repayment limitation. Divide line 8a by 12.0 and enter the result on line 8b, rounded to the nearest whole dollar amount. If a -0- appears on Form 1095-A, on any of lines 21 through 32, column A, you are not entitled to a monthly credit amount for that month because your enrollment premiums were not paid. You must repay some or all of the APTC entered on line 11, column (f). The amount on line 1 above is more than 400% of the federal poverty line. Jim enters Garys SSN on line 30, column (b), and enters 0.33 in column (e). Complete Part IV using the rules in this section if you need to allocate policy amounts and Allocation Situations 1 through 3 do not apply. Check if you qualify for a Special Enrollment Period. 974 for more information. 974 or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. Follow the instructions in, If you need to allocate policy amounts and are also using the alternative calculation for year of marriage, follow the instructions in, Also follow these instructions if you meet the rules in, Exception 2Victim of domestic abuse or spousal abandonment, earlier, and a policy covered at least one individual in your tax family. John is eligible for a premium tax credit of $4,083 for the year. Poverty thresholds and poverty guidelines are dollar amounts set by the U.S. government to indicate the least amount of income a person or family needs to meet their basic needs. Deductions for health insurance premiums. 3865, Tax Information for Survivors of Domestic Abuse, available at IRS.gov/Pub3865 and Part V of Form 8857, Request for Innocent Spouse Relief, available at IRS.gov/Form8857. By checking this box, you are certifying that you qualify for an exception to the requirement to file a joint return with your spouse. 974 until you have completed Table 4 to determine whether you meet the requirements to elect the alternative calculation. 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 SLCSP premium is the same for every month of 2022. If your correct applicable SLCSP premium is not the same for all 12 months, check the No box and continue to lines 12 through 23. To avoid making common mistakes on your Form 8962 and on your income tax return, carefully review all of the following before attaching Form 8962 to your tax return. 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-. Then, complete lines 28 (if it applies to you) and 29. Gary and his 25-year-old nondependent son, Jim, enroll in a qualified health plan. Federal Poverty Levels are used by many assistance programs, including some states' Medicaid programs, as a way to set financial eligibility criteria. Units: 2021 CPI-U-RS Adjusted Dollars, Not Seasonally Adjusted Frequency: Annual Notes: Household data are collected as of March. One qualified health plan covers Bret, his spouse Paulette, and their daughter Sophia from January through August, and APTC is paid for the coverage of all three. (a) Form(s) 1095-A, lines 2132, column A*, (b) Form(s) 1095-A, lines 2132, column B**, (f) Form(s) 1095-A, lines 2132, column C***. You may file your return as if you are unmarried and take the PTC if one of the following applies to you. If you cannot get benefits under an employer-sponsored plan until after a waiting period has expired, you are not treated as eligible for that coverage during the waiting period. Joe enrolls himself, Chris, and Jane in a qualified health plan for 2022. See Example 1 and Example 2, later. Don did not return to the Marketplace to determine if he was eligible for APTC for the months September through December 2022, and remained enrolled in the qualified health plan. Garys allocated enrollment premiums are $10,000 ($15,000 x $12,000/$18,000) (67% of the total premiums of $15,000) and Jims allocated enrollment premiums are $5,000 ($15,000 x $6,000/$18,000) (33% of the total premiums of $15,000). In computing PTC, Joe takes into account $10,400 of enrollment premiums ($13,000 x 0.80). A family's gross monthly income must be at or below 130% of the poverty line. According to Table 3, Joe and Alice use the rules under Allocation Situation 4. Column (f) is left blank. Depending on the facts and circumstances, abuse of an individuals child or other family member living in the household may constitute abuse of the individual. 501, Dependents, Standard Deduction, and Filing Information. Henry claims Heidi as a dependent on his tax return. What percentage of the premium cost is her expected contribution toward the premium? The Marketplace sends copies to individuals to allow them to accurately file a tax return taking the PTC and reconciling APTC.