The taxpayer should also review health insurance records, including Form 1095-A, before refiling the complete return with Form 8962 attached. To correct the error, the taxpayer must refile the return and attach Form 8962, or a written explanation for its absence. The software should also explain what the taxpayer must do to refile a complete return. If the taxpayer’s e-filed return does not include a required Form 8962, the e-filing software should notify the taxpayer that the return was rejected. Taxpayers must file Form 8962 even if they were covered by Marketplace insurance for less than all of 2021, or if they terminated coverage at the end of 2021. The taxpayer must use Form 8962 to reconcile the APTC and the final PTC determined for the year. However, if the PTC is less than the APTC, the difference may increase the taxpayer’s income tax liability. ![]() If the PTC is more than the APTC, the difference is a refundable credit. The taxpayer chooses how much, if any, of this amount to apply toward the insurance premiums. The APTC is based on the Marketplace’s estimate of the PTC the taxpayer will be able to claim for the year. Thus, it reduces the taxpayer’s out-of-pocket expense for the insurance premiums. The APTC pays all or a portion of the taxpayer’s estimated PTC directly to the insurer. Any APTC used to pay the taxpayer’s insurance premiums.The monthly premium for the second lowest cost silver plan (SLCSP) that is used to compute the taxpayer’s PTC and.The premiums for coverage for each month during the year.The taxpayer’s family members who were covered by the insurance, including the periods they were covered. ![]() The marketplace also sends a copy of Form 1095-A to the IRS. The calculation of the credit is very complicated, but taxpayers who had insurance through a Marketplace Exchange at any point during 2021 should receive Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace. The amount of the PTC is determined on a sliding scale depending on household income and family size. The taxpayer also must not be offered minimum essential coverage from an employer that is affordable and provides minimum value. To be eligible for the PTC, the taxpayer’s household income must be between 100% and 400% of the federal poverty line for a family of the same size. This coverage includes a qualified health plan purchased on or through a State Marketplace. ![]() The IRC §36B premium tax credit is a refundable tax credit that helps eligible taxpayers pay for individual or family health insurance coverage obtained through a Marketplace Exchange. However, it appears that the IRS will reject an e-filed return that’s missing a Form 8962 only if APTC payments were used by or on behalf of the taxpayer. Form 8962 reconciles advance premium tax credit (APTC) payments with the health insurance premium credit claimed on the taxpayer’s return.Īll taxpayers who claim the PTC must file Form 8962. The IRS will reject electronically filed tax returns for 2021 that are missing a required Form 8962, Premium Tax Credit (PTC).
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