Recently, there’s been a lot of talk about IRS Form 8962.
With this form, you can claim the Premium Tax Credit to help you get back some
of the money you spent on Marketplace health insurance premiums. If you are one
of those taxpayers who spent a lot on premiums, this form offers up a great way
to get some money back. Unfortunately, though, for some taxpayers, the ones who
got too much money in advance premium credits, this form could serve as notice
that they owe money to the IRS. No matter which category you fall into, it’s
important to understand this form, how it works, and what it could mean for
you.
Using Form 8962
To begin with, understand that you may not necessarily be
eligible to file Form 8962 or to receive the Premium Tax Credit. In order to be
eligible for this credit, you need to have health insurance through the
Affordable Care Act Health Insurance Marketplace, Healthcare.gov, or your
state’s health insurance exchange. If you don’t meet one of these
qualifications, you do not qualify to use Form 8962, and, even if you do meet
one of these requirements, that doesn’t necessarily mean you qualify.
What will determine if you qualify for the tax credit is
your income and personal exemptions. If those are below a certain amount, then
you may be eligible for a special subsidy or credit to help you cover insurance
costs.
Bear in mind, though, that if your income and/or exemptions
changed throughout the year, you may no longer be eligible for the subsidy that
you received. You may even have to pay back any extra money you received in
certain cases. On the flipside, though, if you ended up paying too much, you
could get a nice refund.
Getting Help
Filing taxes can be tricky. As you can see, tax laws are
complex, especially when you factor in the new insurance requirements. If you
are unsure of whether or not you qualify to use Form 8962 or if you have
questions about how to use it, your best bet is to get help from a tax professional.
These professionals will be able to tell you, for sure, if
you need to fill out this and other forms. They can also help you to fill them
out correctly and honestly, helping you to avoid an audit or other problems
related to incorrect tax filings.
There are five different and involved parts to this form, so
unless you’re 100% certain that you can (and should) fill it out on your own,
ask for help from a professional; the process will be so much easier that way!