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).

What does shared policy allocation mean?

When the taxpayer has a shared policy, the enrollment premiums, SLCSP premiums, and APTC reported on Form 1095-A need to be allocated between the taxpayer’s tax return and the tax return(s) of the other individual(s). This is known as a Shared Policy Allocation.

What is a policy allocation?

The different investment choices inside a policy are known as subaccounts. Subaccounts are usually mutual funds or fixed savings options. When establishing the policy, owners choose the subaccounts they want their premiums to be invested into each time a premium payment is made. These selections are called allocations.

What is Form 8962 and when is it used?

Form 8962 is a form you must file with your federal income tax return for a year if you received an advanced premium tax credit through the Marketplace during that year. You must use Form 8962 to reconcile your estimated and actual income for the year.

Can I fill out form 8962 online?

You can electronically file Form 8962, Premium Tax Credit (PTC), along with your federal income tax return. Filing electronically is the easiest way to file a complete and accurate tax return. To find out more about the premium tax credit, visit

What happens if you don’t file form 8962?

What if I file but don’t include 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.

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 the allocation percentage on Form 8962?

The allocation percentage you use and that you put on line 30 of Form 8962 is the percentage of the policy amounts for the coverage that you will use to compute your PTC and reconcile APTC. Policy amounts allocated 100%.

How is 1095 distributed on Form 8962?

Upon filing taxes the 1095-A form policy premium, advanced premium subsidy, etc. is distributed between the two household/tax groups on form 8962 via the use of the Allocation of Policy Amounts – Situation 4 where a policy is shared between two tax families.

What do you put on line 30 of Form 8962?

The allocation percentage you use and that you put on line 30 of Form 8962 is the percentage of the policy amounts for the coverage that you will use to compute your PTC and reconcile APTC. Policy amounts allocated 100%.

How does shared policy allocation ( ACA ) 8962 work?

The software uses the information entered to calculate any allocated Premium Tax Credit (if applicable). Enter the sharing person’s Social Security Number (the person to whom the copy of the 1095-A was furnished) in the SSN of Sharing Taxpayer field.