Form 8962

[Mariastax]

I have a question, I have a client that is filing married filing jointly with dependents, they all have insurance, the father and the two kids have insurance through his job and the mother has insurance through the marketplace. Do they need to fill out form 8962 or if they don’t care for the credit can they just skip it? If they do need to fill out 8962 it should only be for the mother only right? Thank you

[ATSMAN]

I have a question, I have a client that is filing married filing jointly with dependents, they all have insurance, the father and the two kids have insurance through his job and the mother has insurance through the marketplace. Do they need to fill out form 8962 or if they don’t care for the credit can they just skip it? If they do need to fill out 8962 it should only be for the mother only right? Thank you

The gut reaction is " if they don’t care for the credit can they just skip it". But wait how do you know that the credit was correct given the household income?

I would tell them to wait for the 1095-A and then call to book the tax appointment.

[DonB]

The 8962 instructions say you are required to file the 8962 if you want the PTC, or if you received Advance PTC.

[Bees Knees]

Since the two kids were on Dad's plan, that means mom was eligible to be on Dad's plan as well. If mom was eligible for affordable coverage through Dad's plan but simply decided to purchase insurance through the marketplace by choice, she is not eligible for the PTC and any APTC that she received through the Marketplace must be re-paid.

It's not as simple as one would think. You need to know how to ask the correct questions. See question #7 on TTB Health Care Organizer.

[TaxGuyBill]

Since the two kids were on Dad's plan, that means mom was eligible to be on Dad's plan as well.

Although that is completely logical, it not necessarily true. I've seen employer plans that offer coverage to dependents but NOT to the spouse.


Even if they fill out Form 8962, it is unlikely she would qualify for a credit. If not everybody in the household are on the Marketplace policy, it is much less likely they will qualify for the Premium Tax Credit. The Premium Tax Credit basically brings the cost of insurance down to a certain percentage of the household income. That 'net cost' would be the same if 1 person was insured or 10 people were insured.

Let's say based on the household's FPL, the Premium Tax Credit brings 'net cost' down to $400 per month. Let's say the full cost for only the wife is $300, and the full cost of the full family would be $800. If the entire family had the policy, they would get a Credit of $400 per month ($800 minus $400). If only the wife has a policy, there is no Credit (her cost of $300 is less than the 'net cost' calculation of $400).

[Koss]

Form 8962

I'm going to try to answer the original question...

If the taxpayer or the spouse purchased health insurance through the marketplace, then she will receive Form 1095-A.

You will not know whether she received any advance premium tax credit until you review the Form 1095-A. You cannot rely on the taxpayer's representations. Most taxpayers will not intentionally provide false information. But some taxpayers may not be aware, or may not understand, that the monthly premium they are paying through their marketplace policy has been reduced by an advance premium tax credit. You won't know for sure until you see the Form 1095-A.

If they received any advance premium tax credit, then Form 8962 must be filed with the return. If they did not receive any advance premium tax credit, and they are not entitled to any such credit, then the return, at least in theory, could be accurately prepared without Form 8962.

But in practice, since you can't finish the return without the Form 1095-A, you might as well use the data on Form 1095-A to complete Form 8962, to see whether the taxpayer is eligible for the credit.

Furthermore, in practice, your software will probably prevent the return from being filed without Form 8962 if you answer yes to the question of whether the taxpayer received Form 1095-A. And this is not one of those questions where "it is okay to lie to the software." As I have previously noted, anyone who purchased insurance through the marketplace will receive Form 1095-A, and you must use the data on the form when you prepare the return.

This is a long way of saying no, they can't just skip it.

BMK