Read the following instructions to determine whether you should check the Yes box or No box and then proceed as directed. If APTC was paid for the coverage in a qualified health plan of an individual who was not lawfully present, the repayment limitation does not apply to APTC paid for individuals who are not lawfully present. If you enter an amount greater than -0-, the IRS will reduce your entry to -0-. Therefore, they do not qualify a taxpayer to take the PTC. You will need Form 1095-A to complete Form 8962. You or an individual in your tax family enrolled someone not part of your tax family in a qualified health plan (for example, you enrolled a child whom your ex-spouse is claiming as a dependent). Health reimbursement arrangements (HRAs). They are updated each year by the Census Bureau . If a qualified health plan covers individuals in your tax family and individuals in two or more other tax families for 1 or more months, see the rules in Pub. 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, lines 21 through 32, of Form 1095-A may be wrong. No one can claim you as a dependent on a tax return for 2014. Allocation Situation 4 generally applies if another taxpayer indicated to the Marketplace that his or her tax family would include an individual you are including in your tax family, or you indicated to the Marketplace that you would include in your tax family an individual being included in the tax family of another taxpayer, and APTC was paid on behalf of the individual. Under Allocation Situation 2. Use Worksheet 1-1 and Worksheet 1-2 to determine your modified AGI. From February to June 2020, the share of non-elderly individuals living with below-poverty family earnings: Rose by 10.8 percentage points among Black individuals, from 26.9 percent to 37.7 percent; Rose by 7.8 percentage points among Latino individuals, from 22.9 percent to 30.6 percent; Form 8962 and the IRS electronic filing program provide for entries of dollars only. You are living apart from your spouse at the time you file your 2022 tax return. You do not meet the 3-year limit for Exception 2, described below. Poverty in the United States Single people in the United States making less than 12,880 U.S. dollars a year. See Individual you enrolled who is not included in a tax family under Lines 12 Through 23Monthly Calculation, later. See Pub. For example, if your family size is 11, you have 3 additional people. 974 under, Allocation of Policy Amounts Among Three or More Taxpayers, You may need to allocate policy amounts under a qualified health plan using different rules for different months if you had a change in circumstance. Enter the amount from line 29 on your Schedule 2 (Form 1040), line 2. 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. You were enrolled in the qualified health plan for all 12 months during 2022. Henry claims Heidi as a dependent on his tax return. Enter the amount from line 8a of Form 8962. Option 2: Get Federal Poverty Levels Without Entering Your Income. Based on Your Income. 974 for information on determining the correct applicable SLCSP premium or, if you enrolled through the federally facilitated Marketplace, go to, If individuals in your coverage family enrolled in more than one policy in the same state, you will receive a Form 1095-A for each policy. If, You file a separate return from your spouse on Form 1040 or 1040-SR because you meet the requirements for, You file as single on your Form 1040-NR because you meet the requirements for, You are unable to file a joint return because you are a victim of, Domestic abuse includes physical, psychological, sexual, or emotional abuse, including efforts to control, isolate, humiliate, and intimidate, or to undermine the victim's ability to reason independently. The termination is generally effective no sooner than the second month of nonpayment. According to Table 3, Kevin and Nancy follow the rules under Allocation Situation 2. The specific income levels vary with family size and relationships of household members. You are including an individual in your tax family for the year of coverage, but you did not indicate to the Marketplace at enrollment that you would do so. Because John is filing his tax return as married filing separately and no exception to the married filing jointly requirement applies, he is not an applicable taxpayer and must repay the $4,250 in APTC allocated to him, subject to the repayment limitations on line 28. You file a return as single or head of household (see Exception 1Certain married persons living apart under Married taxpayers, earlier). If the correct applicable SLCSP premium is not the same for every month of 2022, check the No box and continue to lines 12 through 23. 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. Between 130 and 185 percent of the Federal poverty line can receive a reduced-price lunch. If the QSEHRA was unaffordable for a month and you had to reduce the monthly PTC (but not below -0-) by the monthly permitted benefit amount, enter QSEHRA in the top margin on page 1 of Form 8962 to explain your entry and avoid delay in the processing of your return. Need to determine correct applicable SLCSP premium. In addition, if you were married at the end of 2022, you must file a joint return to be an applicable taxpayer unless you meet one of the exceptions described under Married taxpayers, later. 722 000 people were affected by income poverty. Also, if you leave your employment and are offered post-employment coverage such as COBRA or retiree coverage, you are not considered eligible for that post-employment coverage unless you actually enroll in the coverage. If you completed Part VAlternative Calculation for Year of Marriage, use the instructions in Pub. Keith claims Ben and Grace as dependents and Stephanie claims Max as a dependent for 2022. Defined as paying more than 30% of household income for housing costs (rent or mortgage and utilities). You cannot deduct the portion of your health insurance premium on your tax return that is paid for by the PTC or APTC (after you determine how much of any excess APTC you must repay). That includes nearly 50 percent of Americans and almost 60 percent of children. If you have concerns about your safety, please consider contacting the confidential 24-hour National Domestic Violence Hotline at 1-800-799-SAFE (7233), or 1-800-787-3224 (TTY), or 1-855-812-1001 (video phone, only for deaf callers). 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. 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. Johns modified AGI is not included because he is not in Carols tax family. See the instructions for Line 1, later, for more information on figuring your tax family size. Monthly APTC of $1,000 was paid for them, for a total of $4,000. If you were married at the end of 2022 but are filing separately from your spouse, the repayment limitations shown in Table 5 apply to you and your spouse separately based on the household income reported on each return. 974 for how to complete column (c). Were you and your spouse each unmarried on January 1, 2022? Use the amounts shown on Form 1095-A, line 33 (columns A, B, and C), for completing line 11. raised benefits by 23 percent for federal . Joe and Alice have been divorced since January 2021 and have two children, Chris and Jane. (The other policy amounts are not allocated because neither spouse is allowed a PTC.) According to Table 3, Henry and Cara will allocate the amounts from the policy for January through June on line 30 using the rules under Allocation Situation 1. Use Tax Form 8962: Premium Tax Credit (PTC) as a stand alone tax form calculator to quickly calculate specific amounts for your 2023 tax return. 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. Taxpayers divorced or legally separated in 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. If your household income is less than 100% of the federal poverty line, and you do not meet the requirements under Estimated household income at least 100% of the federal poverty line or Alien lawfully present in the United States, earlier, you are not an applicable taxpayer and you are not eligible to take the PTC. For individuals with household income below 100% of the federal poverty line, see Household income below 100% of the federal poverty line under Line 5, later. Note. Alice is allocated 33% of the enrollment premiums, APTC, and applicable SLCSP premiums for the policy, and the remaining 67% of each is allocated to Joe. 6 If you're a family of four living in the continental US and applying for 2022 health insurance coverage, your FPL (from the 2021 FPL table) is $26,500. On his Form 8962, Part IV, line 30, Keith enters Stephanies SSN in column (b) and enters 0.67 in columns (e), (f), and (g). See the instructions for Line 9, later. If you have an amount on line 26 (other than -0-), be sure to enter that amount on Schedule 3 (Form 1040), line 9. Carol looks up the SLCSP premium that applies to her and Mark. Throughout these instructions, a qualified health plan is also referred to as a policy. Enter on line 4 the amount from Table 1-1, 1-2, or 1-3 that represents the federal poverty line for your state of residence for the family size you entered on line 1 of Form 8962. Are you filing a joint return with your spouse for 2022? The children become eligible for and enroll in government-sponsored health coverage and disenroll from the qualified health plan, effective August 1. The law extends eligibility to taxpayers with household income above 400 percent of the federal poverty line by lowering the upper premium contribution limit to 8.5 percent of household income. If you were enrolled in a qualified health plan for fewer than 12 months during 2022, check the No box and continue to lines 12 through 23. Under the rules in this section, you and the other taxpayer may agree on any allocation of the policy amounts between the two of you. Full-year coverage with no changes on Form 1095-A, Part III, column A or B. * Enter the result here and on line 5 of Form 8962. 12. The Marketplace should have entered the same SLCSP premium, which applies to all members of your coverage family for coverage that month, on each Form 1095-A. Ryan enters the amount from line 29 on the applicable line of his tax return. The SSN on this form should match the SSN on your tax return. On his Form 8962, Part IV, line 30, John enters Carols SSN in column (b) and enters 0.50 in column (g). Your APTC eligibility is based on the Marketplaces estimate of the PTC you will be able to take on your tax return. If line 24 is greater than line 25, subtract line 25 from line 24 and enter the result on line 26. See Pub. Other changes affecting the composition of your tax family. If the policy number of the Form 1095-A is more than 15 characters, enter only the last 15 characters. Enter the smaller of line 27 or line 28. 974. For tax year 2022, taxpayers with household income that exceeds 400% of the federal poverty line for their family size may be allowed a PTC. Carol must then reconcile $4,250 ($8,500 x 0.50) of the APTC for her coverage. In 2017, 19.7 million Americans (over the age of 12) battled a substance use disorder. Do not include the modified AGI of dependents who are filing a tax return only to claim a refund of tax withheld or estimated tax. Use the fpl calculator below to get annual and monthly poverty level amounts for all states, including percentages of poverty levels such as 133% of the FPL, or 135%, 138%, 150%, 175%, and so forth for household sizes up to 10 people. Divide the amount on line 1 above by the amount on line 2 above. If Exception 1 applies, you can file a return using head of household or single filing status and take the PTC. For purposes of the PTC, your tax family consists of the following individuals. Federal poverty levels for previous years, How income is counted for health coverage savings, How to find out if you qualify for Medicaid & CHIP coverage. Adjusting your APTC when you re-enroll in coverage and during the year can help you avoid owing tax when you file your tax return. For example, for 0.9984, enter the result as 99; for 1.8565, enter the result as 185; and for 3.997, enter the result as 399. Carols federal poverty line percentage is determined using only her and Mark's modified AGI. 974 under, Form 8962 and the IRS electronic filing program provide for entries of dollars only. Families are classified as being in "deep poverty" if their income falls below 50% of the poverty guidelines ($13,123 for a family of four). 974 for the amount to enter on line 28. The 2022 federal poverty level (FPL) income numbers below are used to calculate eligibility for Medicaid and the Children's Health Insurance Program (CHIP). You are an applicable taxpayer for 2022. Melissa enters the amount from line 29 on the applicable line of her tax return. Despite five years of economic recovery, poverty is still stubbornly high in America. Use, Your coverage family includes all individuals in your, The enrollment premiums are the total amount of the premiums for the month, reduced by any premium amounts for that month that were refunded, for one or more, The applicable SLCSP premium is the second lowest cost silver plan premium offered through the Marketplace where you reside that applies to your, Your monthly contribution amount is used to calculate your monthly credit amount. If you are married and filing a joint return, enter the first SSN that appears on your tax return. Married individuals who file separate returns are generally not eligible to take the PTC. 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. Reporting changes in circumstances promptly will allow the Marketplace to adjust your APTC to reflect the PTC you are estimated to be able to take on your tax return. See Example 1 and Example 2, later. Otherwise, leave column (e) blank. If your allocation situation requires you to allocate the applicable SLCSP premium on Form 1095-A, lines 21 through 32, column B, enter your allocation percentage for that policy in column (f). 2021 numbers are slightly lower, and are used to calculate savings on Marketplace insurance plans for 2022. You'll also enter your household income as a percentage of the federal poverty line. The facts are the same as in Example 1, except that Joe and Alice do not agree on an allocation percentage. 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. Because Melissa and Ryan are married but not filing a joint return and neither Exception 1Certain married persons living apart nor Exception 2Victim of domestic abuse or spousal abandonment applies, neither spouse is allowed a PTC for 2022. Calculator updated January 22, 2023 502, Medical and Dental Expenses. The individuals included in your coverage family may change from month to month. If no APTC was paid for the policy, the Marketplace may not know which enrollees are in which tax family, and therefore may furnish only one Form 1095-A showing the total premium. Federal Poverty Levels are used by many assistance programs, including some states' Medicaid programs, as a way to set financial eligibility criteria. This number is used to calculate your contribution amount. You may file your return as if you are unmarried and take the PTC if one of the following applies to you. Multiply by 100 to get the percentage. According to Table 3, Joe and Alice use the rules under Allocation Situation 4. 974, Premium Tax Credit. Carol qualifies to file her return as head of household. Census Bureau Releases Small Area Income and Poverty Estimates for States, Counties and School Districts December 15, 2022 The median estimated poverty rate for school-age children in all U.S. school districts in 2021 was 14.5%, according to data released today by the Census Bureau. Household income does not include the modified AGI of those individuals whom you claim as dependents and who are filing a 2022 return only to claim a refund of withheld income tax or estimated tax. Under a QSEHRA, an eligible employer can reimburse eligible employees for medical expenses, including premiums for Marketplace health insurance. For example, an. If you are offered an individual coverage HRA, see, Under a QSEHRA, an eligible employer can reimburse eligible employees for medical expenses, including premiums for Marketplace health insurance. Skip lines 7 through 8b and complete lines 9 and 10 (and Part IV, if applicable). You or the family member may be treated as eligible for Medicaid, CHIP, or the similar program, and not eligible for the PTC, if the Marketplace determination is later found to be based on incorrect information that was given with an intentional or reckless disregard for the facts. You do not have to request a corrected Form 1095-A from the Marketplace. Don got a new job with employer coverage that Don could have enrolled in as of September 1, 2022, but chose not to. If you file as married filing separately and are not a victim of domestic abuse or spousal abandonment (see Exception 2Victim of domestic abuse or spousal abandonment under Married taxpayers above), then you are not an applicable taxpayer and you cannot take the PTC. A qualified health plan may have covered at least one individual in your tax family and one individual not in your tax family if: You are married but filing a separate return from your spouse, You or an individual in your tax family was enrolled in a qualified health plan by someone who is not part of your tax family (for example, your ex-spouse enrolled a child whom you are claiming as a dependent), or. 2.0. The percent of the population below the federal poverty line. If your entry on Form 8962, line 5, is 400 or more, there is no repayment limitation. Alien lawfully present in the United States. For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) (see Line 2a, later) plus the modified AGI of each individual whom you claim as a dependent and who is required to file an income tax return because his or her income meets the income tax return filing threshold (see Line 2b, later). See, If 100% of the policy amounts are allocated to you, check, If you are not an applicable taxpayer because you are using filing status married filing separately and, In all other situations, leave column (f) blank because you do not allocate the applicable SLCSP premium reported in those situations. If, during 2022, your coverage family changed or you moved and you did not notify the Marketplace, or if no APTC was paid, the applicable SLCSP premium reported on your Form(s) 1095-A may be missing or incorrect. Exception 1Certain married persons living apart. 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. See the instructions for, For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) (see, 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). Generally, you are an applicable taxpayer if your household income for 2022 (described earlier) is at least 100% of the federal poverty line for your family size (provided in Tables 1-1, 1-2, and 1-3) and no one can claim you as a dependent for 2022. By 2019, following national trends, this percentage was 7.5%. Use the monthly amounts from Form 1095-A, lines 12 through 32 (columns A, B, and C), when completing lines 12 through 23. If line 25 is greater than line 24, subtract line 24 from line 25 and enter the result. 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. See Report changes in circumstances when you re-enroll in coverage and during the year, earlier, for changes that can affect the amount of your PTC. However, if you got married in December of 2022 and you and your spouse, or individuals in your and your spouse's tax family, were enrolled in separate qualified health plans, add the amounts from Form 1095-A, column B, for each plan (or plans) and enter the total. If you receive a Form 1095-A with the CORRECTED box checked at the top of the form, use the information on the Form 1095-A with the CORRECTED box checked to figure the PTC and reconcile any APTC on Form 8962. Taxpayers divorced or legally separated in 2022, earlier. See Individuals Not Lawfully Present in the United States Enrolled in a Qualified Health Plan in Pub. Victims of domestic abuse or spousal abandonment. 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. Calculate your household income as a percentage of the federal poverty line. Enter your allocation percentage as a decimal rounded to two places (for example, for 67%, enter 0.67). Combine them even if one or both of them are negative. Form 1095-A, Part III, column B, generally reports the applicable SLCSP premium. Jane lives with Alice for more than half of 2022 and Alice claims Jane as a dependent. If individuals in your coverage family enrolled in separate policies in the same state, you will receive a Form 1095-A for each policy. "Opportunity for All" is a whole-of-government strategy that involves actions and investments that span across the federal government. Enter the SSN of the taxpayer with whom you are allocating policy amounts. Enter the first month you are allocating policy amounts. If you complete Part IV, check the No box on line 10. Nancy enters this amount on the applicable lines in column (b), lines 12 through 23. If neither Kevin nor Nancy notifies the Marketplace about the change in family circumstances, the Form 1095-A that Kevin or Nancy receives will report in column B the premium for the applicable SLCSP that covers Nancy and Kevin, which will be incorrect. Looking for Financial Help for Elder Care? Cara also purchased different health insurance through a Marketplace for July through December for herself, Heidi, and Matt. Complete line 36, columns (a) through (d), as indicated in Pub.