Quick Answer: What Is An 8962 Tax Form?

How long does it take IRS to process Form 8962?

4-8 weeksThe IRS says to allow 4-8 weeks to process a return after receiving the 1095-A and Form 8962, although I have seen them processed much quicker than that..

How does a 1095 A affect my taxes?

You will use the information from the Form 1095-A to calculate the amount of your premium tax credit. You will also use this form to reconcile advance payments of the premium tax credit made on your behalf with the premium tax credit you are claiming on your tax return.

What happens if I don’t report my 1095 A?

Reporting Your 1095-A Not filing your return will cause a delay in your refund and may affect your future advance credit payments. … If you have not received your 1095-A, the IRS recommends that you wait until you receive the form before preparing and filing your 2020 Tax Return.

Will I get penalized if I underestimate my income for Obamacare?

But what happens if it turns out you underestimate your annual income? … The amount you’ll have to pay back depends on your family income. If your income is below 400% of the federal poverty level, there is a cap on the amount you’ll have to pay back, even if you received more in assistance than the amount of the cap.

What is a modified AGI on Form 8962?

For purposes of the PTC, modified AGI is the AGI on your tax return plus certain income that is not subject to tax (foreign earned income, tax-exempt interest, and the portion of social security benefits that is not taxable). Use Worksheet 1-1 and Worksheet 1-2, later, to determine your modified AGI.

Do I need to file Form 8962?

You must file Form 8962 to compute and take the PTC on your tax return. Advance payment of the premium tax credit (APTC). … If APTC was paid for you or an individual in your tax family, you must file Form 8962 to reconcile (compare) this APTC with your PTC.

How do I not pay back my premium tax credit?

The easiest way to avoid having to repay a credit is to update the marketplace when you have any life changes. Life changes influence your estimated household income, your family size, and your credit amount. So, the sooner you can update the marketplace, the better. This ensures you receive the correct amount.

Who can help me fill out a 8962 form?

Turbo Tax can help you complete a Form 8962 if you have received a letter from the IRS asking for an update. … The form should have been generated when you entered your 1095-A into the Health Insurance section of Turbo Tax, but if for some reason it was not entered, these are the step-by-step instructions to add them.

Do I have to pay back premium tax credit?

A tax credit you can take in advance to lower your monthly health insurance payment (or “premium”). … If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your federal tax return.

How does marketplace insurance affect my taxes?

A tax credit you can use to lower your monthly insurance payment (called your “premium”) when you enroll in a plan through the Health Insurance Marketplace®. Your tax credit is based on the income estimate and household information you put on your Marketplace application.

Is Form 8962 required for 2019 taxes?

You do not need to file Form 8962. You can take the PTC for 2019 if you meet the conditions under (1) and (2) below.

What is a 8962 form used for?

More In Forms and Instructions Use Form 8962 to: Figure the amount of your premium tax credit (PTC). Reconcile it with any advance payments of the premium tax credit (APTC).

What happens if I don’t file Form 8962?

For any year when you received advanced premium tax credits, you are required to file a federal income tax return, including Form 8962. If you fail to do this — it is called “failure to reconcile” — you may be unable to apply for premium tax credits for the following year.

Is Form 8962 the same as 1095 a?

You must wait until you get an accurate 1095-A form before filing your taxes . This is because your 1095-A form has information you need to calculate your premium tax credit, which is reported on IRS form 8962. However, you’re not obligated to complete form 8962 if you didn’t get any premium tax credits during 2019.

How does form 8962 affect tax return?

Filing a federal tax return to claim and reconcile the Credit. If you or someone in your family received advance payments of the premium tax credit through the Health Insurance Marketplace, you must complete Form 8962, Premium Tax Credit. … This will increase your refund or lower the amount of tax you owe.

How do I file Form 8962 on TurboTax?

Can turbo tax complete a form 8962 for me?Click on Deductions & Credits under Federal.Under the menu for Medical, click Start/Revisit next to Affordable Care Act (Form 1095-A)Answer Yes indicating that you have the form to enter.Complete the information on the next screen to match your form and click continue.

How does a tax credit affect my refund?

tax credits is that deductions chip away at the income you’ll pay taxes on, which then reduces your taxes, while credits directly reduce the amount of taxes you owe. Some tax credits like the earned income tax credit may even increase your refund, or provide you with a refund even if you didn’t owe any taxes.

Do I need to fill out Form 8962 Part 4?

If both are true, you will need to complete Part IV of Form 8962 to allocate policy amounts. See here for more information. year of marriage. This is an optional calculation that may result in a smaller repayment of excess APTC than would be calculated under the general rules.

What is repayment limitation on Form 8962?

See form 8962 instructions. TIP: The numbers below are the max amount you will have to repay, not the exact amount. In other words, repayment limits means you can’t pay higher than the amount listed for your family size and % of the Federal Poverty Level.

Can I fill out Form 8962 online?

If you completed your tax return originally in TurboTax you can add this form online and should not be charged. In order to complete the 8962 you will need to start as an amending return but that return will not be filed. … Only the Form 8962 the IRS requested is sent in, do not send the entire amended return.

How does the health care tax credit affect my tax return?

The premium tax credit is a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange. … If you owe no tax, you can get the full amount of the credit as a refund.

Where can I get a 8962 tax form?

Where to Get Form 8962. Form 8962 can be found on the IRS website and is free to download. 2 If you’re filing taxes using an electronic tax filing software, this form should be generated for you as you navigate through the program’s questionnaire format.

How do I print Form 8962?

11) To print Form 8962, select My Account at the top of the online program and Print Center from the drop-down list. 12) On the TurboTax Print Center screen, select Print, save or preview this year’s return.

What do I do if I received an IRS letter about a missing 8962?

If your Letter 12C indicates that Form 8962, Premium Tax Credit was missing and not attached to your return, you will need to send the completed Form 8962 to the IRS. You do NOT need to amend your return, so there is no need to submit Form 1040-X, Amended Return.

How long does it take the IRS to respond to a fax?

within 2 weeksUnder normal conditions, the IRS should respond to your fax within 2 weeks from the date of sending. If you provided incomplete or missing information, this may take longer. For tax returns, you will receive your tax refund within 3 weeks of the data when IRS receives your return if you choose to do so via e-filing.

How do I fax Form 8962 to the IRS?

If you wish to fax your IRS form by fax, you can do so easily for free or with a paid plan by following these simple steps: … On the app, go to the Send Fax section. Enter the IRS fax number in the To field and attach the IRS form you would like to submit. Click on the Send button and wait for the confirmation email.