Check the Yes box and continue to line 11 if all of the following apply for each qualified health plan you or a member of your tax family was enrolled in for 2022. Jane lives with Alice for more than half of 2022 and Alice claims Jane as a dependent. To determine your applicable SLCSP premium for each month, see Pub. 4; 1) What is a Qualified Health Plan? Generally, they are released at the end of each year and are effective at the beginning of the new year in January. Estimated household income at least 100% of the federal poverty line. Once you complete line 11, skip to line 24. The specific income levels vary with family size and relationships of household members. Married filing separately (not in Exception 2Victim of domestic abuse or spousal abandonment). If you, your spouse, or any individual in your tax family had coverage under a qualified health plan for at least 1 month before your first full month of marriage, use the worksheets and instructions necessary to complete the alternative calculation in Pub. The excess APTC you must repay may be limited to the amounts in Table 5. See Pub. If you did not complete Part IV, check the No box on line 9 and continue to line 10. 2.0. Premiums another person pays on your behalf are treated as paid by you. Notice 2017-67 is available at IRS.gov/irb/2017-47_IRB#NOT-2017-67. If it is not the same for every month, you cannot use line 11. However, if you became eligible for APTC because of a successful eligibility appeal and you retroactively enrolled in the plan, the portion of the enrollment premium for which you are responsible must be paid on or before the 120th day following the date of the appeals decision. Scroll down to the tables or use the calculators below Use the 2023 Poverty Level Calculator Keith and Stephanie divorce in July. Your SLCSP premium is the same for every month of 2022. When this happens, the taxpayer receiving the Form 1095-A should provide a copy to the other taxpayers. For additional information about the tax provisions of the Affordable Care Act (ACA), see IRS.gov/Affordable-Care-Act/Individuals-and-Families or call the IRS Healthcare Hotline for ACA questions (800-919-0452). 974 for information on determining the correct premium for the applicable SLCSP or, if you enrolled through the federally facilitated Marketplace, go to, Complete line 35, columns (a) through (d), as indicated in Pub. Instead, you must determine the correct applicable SLCSP premium for your coverage family and enter that amount on Form 8962, lines 12 through 23, column (b). See Example 3 and Example 4, later. You do not need to file Form 8962. While coverage purchased in the individual market outside the Marketplace is MEC, eligibility for this type of coverage does not prevent you from being eligible for the PTC for Marketplace coverage. Gary and Jim must allocate the enrollment premiums of $15,000 reported on the Form 1095-A, Part III, column A, in proportion to each taxpayer's applicable SLCSP premium as follows. For help determining which of these forms to file, see the Instructions for Form 1040 or the Instructions for Form 1040-NR. If both (1) and (2) above apply, check the, 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. Your household income for 2022 is at least 100% of the federal poverty line for your family size (see the instructions for Line 4, later). For example, if you used this exception to claim the PTC on your tax returns for 2019, 2020, and 2021, you cannot use this exception to claim the PTC on your 2022 return. The percentage of the population living in poverty decreased from 14.9% in 2018 to 13.3% in 2019. Taxpayers married at year end but filing separate returns. For purposes of the PTC, a qualified health plan is a health insurance plan or policy purchased through a Marketplace at the bronze, silver, gold, or platinum level. B) 8.5%. According to Table 3, Joe and Alice use the rules under Allocation Situation 4. These figures are updated and released by the Social Security Administration (SSA). Students from households with incomes: At or below 130 percent of the Federal poverty line can receive a free lunch. [6] You'll need the instructions for Form 8962 to calculate the numbers for the first 3 lines of Form 8962. Don provided accurate information about his employers coverage to the Marketplace, and the Marketplace determined that the offer of coverage was not affordable and that Don was eligible for APTC. Enter your allocation percentage as a decimal rounded to two places (for example, for 40%, enter 0.40). Gary and Jim determine that the SLCSP premium that applies to Gary and his two dependents is $12,000 and the SLCSP premium that applies to Jim is $6,000. Coverage in the individual market outside the Marketplace. See, If individuals in your coverage family enrolled in separate policies in the same state, you will receive a Form 1095-A for each policy. (For example, if you got married on July 15, your first full month of marriage was August.). You need to obtain a copy of the Form 1095-A from the person who enrolled the individual. If you completed Part IV, check the No box on line 10, skip line 11, and enter the amounts from lines 1 through 12 of this worksheet in the lines for the corresponding months and columns of lines 12 through 23 of Form 8962. 0.0. The annual enrollment premium for the plan is $13,000. If you are self-employed and are claiming the self-employed health insurance deduction, see Self-Employed Health Insurance Deduction and PTC in Pub. If you completed Part VAlternative Calculation for Year of Marriage, use the instructions in Pub. Because the SLCSP premium is not the same for every month of the year, Mike and Susan cannot use line 11 and must complete lines 12 through 23 on Form 8962. No. If the policy number of the Form 1095-A is more than 15 characters, enter only the last 15 characters. 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. According to Table 3, Keith and Stephanie follow the rules under Allocation Situation 1. Poverty in the United States Single people in the United States making less than 12,880 U.S. dollars a year. Federal means-tested public benefits include food stamps, Medicaid, Supplemental Security Income (SSI), Temporary Assistance for Needy Families (TANF), and the State Child Health Insurance Program (SCHIP). a. In January, Keith enrolls Ben, Grace, and Max in a qualified health plan beginning in January. John leaves columns (e) and (f) blank because he is not an applicable taxpayer and cannot take the PTC. Then check the Yes box on line 9 and follow the instructions for Line 9 and Part IV. See the instructions for line 9 and Part IV, later, for more information about this rule. This will allow certain taxpayers to obtain a PTC even if taxable income is 1,000% or more of the federal poverty level. An incorrect entry on this line will impact the amount of your PTC. Alice is responsible for reconciling $1,429 ($7,145 x 0.20) of APTC for Janes coverage. You and your former spouse may agree to allocate any percentage (from 0% to 100%) of these amounts to one of you (with the remainder allocated to the other), but you must allocate all three amounts using the same percentage. Nancys federal poverty line percentage is determined using Nancy's modified AGI and her family size of one. Was APTC paid for anyone in your tax family during 2022? Carol must then reconcile $4,250 ($8,500 x 0.50) of the APTC for her coverage. Because Kim and Chris were eligible for CHIP, which is MEC, Tom and Nicole are not eligible for the PTC for coverage of Kim and Chris, but may be eligible for the PTC for their own coverage. A family's poverty line percentage is their annual income divided by the poverty line for their household size. The Census Bureau has changed the methodology for computing median income over time. On her Form 8962, Part IV, line 30, Carol enters Johns SSN in column (b) and enters 0.50 in columns (e) and (g). If you elected the alternative calculation for year of marriage, and line 24 is greater than line 25, enter -0- on line 26 and skip lines 27 through 29. Lower-income households have incomes lower than two-thirds of the median, and upper-income households have incomes that are more than double the median. Jim computes his credit using his household income and family size of one, and the applicable SLCSP premium for a coverage family of one of $6,000. Therefore, the individual may be a member of your tax family and coverage family for the entire month for purposes of computing your monthly credit amount. If you have an amount on line 29, be sure to enter that amount on Schedule 2 (Form 1040), line 2. Form 8962 and the IRS electronic filing program provide for entries of dollars only. 974 under Allocation of Policy Amounts Among Three or More Taxpayers. Don enrolled in the qualified health plan for 2022. Michael does not file Form 8962 because he was not enrolled in a qualified health plan. 974 for information on determining the correct applicable SLCSP premium or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. According to Table 3, they follow the rules under Allocation Situation 2. Enter -0- on the appropriate line on Form 8962, column (b). *Only include your dependents who are required to file an income tax return because their income meets the income tax return filing threshold. The poverty rate for married-couple families increased from 4.0 percent in 2019 to 4.7 percent in 2020. When this happens, the taxpayer receiving the Form 1095-A should provide a copy to the other taxpayers. The table below reflects the income limit by household size, which is 200% of the 2022 Federal Poverty Guidelines. The thresholds are used mainly for statistical purposes for instance, preparing estimates of the number of Americans in poverty each year. However, the amount of APTC you have to repay may be limited. If any of the above apply and you did not notify the Marketplace or if you have reason to believe the Marketplace reported the wrong applicable SLCSP premium, determine the correct applicable SLCSP premium for the months affected. 974 under. With an annual income of $30,578 (or 225% of FPL) for 2023, John's required premium contribution is 3 percent of income. If you are instructed to complete line 11, do not complete lines 12 through 23. You will enter an allocation percentage in column (f) in the following two circumstances. See Example 1 and Example 2, later. Barbara's household income in 2021 is 150% of the federal poverty line, and she purchased health insurance coverage through an ACA marketplace whose premium does not exceed the premium for a benchmark plan. * Enter the result here and on line 5 of Form 8962. 200% federal poverty line is $24,632 for one person; $32,634 for family of two; $38,146 for family of three. Mike and Susan check the No box on Form 8962, line 10, and complete lines 12 through 23. Keith claims Ben and Grace as dependents and Stephanie claims Max as a dependent for 2022. Examples of changes in circumstances that may affect your applicable SLCSP premium include the following. Keith and Stephanie divorce in July. Generally, if coverage in a qualified health plan began after the first day of the month, you are not allowed a monthly credit amount for the coverage for that month. Michael and Colleen are not applicable taxpayers and cannot take the PTC. 12. Listing your dependents by name and social security number (SSN) or individual taxpayer identification number (ITIN) on your tax return is the same as claiming them as a dependent. 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). You or an individual in your tax family enrolled in a qualified health plan through a Marketplace. See Missing or incorrect SLCSP premium on Form 1095-A under Line 10, earlier, to determine your correct applicable SLCSP premium. You will need Form 1095-A to complete Form 8962. We focus on households with any child aged 18 or less living at or below 200% of the federal poverty line because this represents the upper threshold of eligibility for most safety net assistance. Keith and Stephanie are married at the beginning of 2022 and have three children, Ben, Grace, and Max. If you are instructed to complete lines 12 through 23, do not complete line 11. 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 you are required to use lines 12 through 23 of Form 8962, enter the amounts from lines 1 through 12 of this worksheet in the lines for the corresponding months and columns on Form 8962. However, having household income below 100% of the federal poverty line will not disqualify you from taking the PTC if you meet certain requirements described under Household income below 100% of the federal poverty line, later. If you entered an ITIN on your tax return, enter this number on Form 8962. No APTC was paid for your coverage. Under Allocation Situation 2. You must file Form 8962 to compute and take the PTC on your tax return. You must be an applicable taxpayer to take the PTC. Use the amounts shown on Form 1095-A, line 33 (columns A, B, and C), for completing line 11. Note. The struggle to raise children on such a meager income is not a rare circumstance among U.S. families, especially those with young children. For non-senior families, where the highest-income earner was under 65 years of age, the median after-tax income was $93,800 in 2019. It is not based on the amount of premiums you paid out of pocket during the year. 974 for how to complete column (c). You or an individual in your tax family was enrolled in the same policy as your spouse or an individual in your spouse's tax family at any time during 2022. Your family size equals the number of qualifying individuals in your tax family (including yourself). Do not use the information on the Form 1095-A with the VOID box checked or the previously received Form 1095-A to complete Form 8962. For more information, see, Qualified Small Employer Health Reimbursement Arrangement, Other changes affecting the composition of your, For more information on how to report a change in circumstances to the Marketplace, see, For additional information about the tax provisions of the Affordable Care Act (ACA), see, The PTC is a tax credit for certain people who enroll, or whose family member enrolls, in a, APTC is a payment during the year to your insurance provider that pays for part or all of the premiums for a qualified health plan covering you or an individual in your tax family. Were you and your spouse each unmarried on January 1, 2022? Skip lines 7 through 8b and complete lines 9 and 10 (and Part IV, if applicable). Waiting periods and post-employment coverage. Married individuals who file separate returns are generally not eligible to take the PTC. However, filing a separate return from your spouse will not disqualify you from being an applicable taxpayer if you meet certain requirements described under Married taxpayers, later. Jim has no dependents. Don is not considered eligible for employer-sponsored coverage for the months January through August of 2022 because he gave accurate information to the Marketplace about the availability of employer coverage, and the Marketplace determined that he was eligible for APTC for coverage in a qualified health plan. 2020 Poverty Lines for the 48 Contiguous States and the District of Columbia For families/households with more than 8 persons, add $4,480 for each additional person (100% Poverty Line) Persons in family/household 100% Poverty Line 138% Poverty Line 400% Poverty Line 1 $12,760 $17,608 $51,040 2 $17,240 $23,791 $68,960 Change in circumstances affecting SLCSP. You should round the amounts on Form 1095-A to the nearest whole dollar and enter dollars only on Form 8962. No one can claim you as a dependent for the year. If Exception 1 or Exception 2 applies, follow the rules in the next paragraph. Do not use the information on the original Form 1095-A you received for the policy shown in Part I of the corrected Form 1095-A. Multiply $4,540 by 3 and add the result of $13,620 to $44,660. The enrolled individual is lawfully present in the United States and is not eligible for Medicaid because of immigration status. The couple divorced on June 30. Therefore, you and the other tax family must allocate the enrollment premiums, the APTC, and the applicable SLCSP premium so that each family is able to compute their PTC and reconcile their PTC with the APTC paid for their coverage. 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. Print or type your name exactly as you entered it on your tax return. benefit equally from the combined income of the household. If you are claiming the self-employed health insurance deduction, see Pub. But see Missing or incorrect SLCSP premium on Form 1095-A next. In computing PTC, Joe takes into account $10,400 of enrollment premiums ($13,000 x 0.80). An individual is generally considered eligible for MEC for the month only if he or she was eligible for every day of the month (see Minimum essential coverage, later). Follow the instructions in Table 4 to determine whether you qualify for the alternative calculation. If individuals in your coverage family enrolled in separate policies in the same state, you will receive a Form 1095-A for each policy. 974. You may file your return as if you are unmarried and take the PTC if one of the following applies to you. Form 1095-A shows the months of coverage purchased through the Marketplace and any APTC paid to your insurance company to help cover your monthly premium. Part IIIRepayment of Excess Advance Payment of the Premium Tax Credit. 974 or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. Form 1095-A, Part III, column A, reports the enrollment premiums. Lower-income households had incomes less than $48,500 and upper-income households had . You may take the PTC (and APTC may be paid) only for health insurance coverage in a qualified health plan (defined later) purchased through a Health Insurance Marketplace (Marketplace, also known as an Exchange). These numbers from the American Community Survey highlight the stark income inequality the nation's first peoples face. 2.0. You are filing a separate return from your spouse. Also enter the amount from line 26 on Schedule 3 (Form 1040), line 9. An individual in your tax family was enrolled in a qualified health plan offered through the Marketplace on the first day of the month. 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.

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