2023 Publication 974

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Department of the Treasury

Internal Revenue Service

Publication 974

Cat. No. 66452Q

Premium Tax

Credit (PTC)

For use in preparing

2023 Returns

Get forms and other information faster and easier at:

• IRS.gov (English)

• IRS.gov/Spanish (Español)

•

IRS.gov/Chinese (中文)

•

IRS.gov/Korean (한국어)

• IRS.gov/Russian (Pусский)

• IRS.gov/Vietnamese (Tiếng Việt)

Contents

Future Developments ....................... 1

What’s New ............................... 1

Reminders ............................... 2

Introduction .............................. 2

What Is the Premium Tax Credit (PTC)? ......... 3

Who Must File Form 8962 .................... 4

Who Can Take the PTC ...................... 4

Terms You May Need To Know ................ 4

Minimum Essential Coverage (MEC) ........... 8

Individuals Not Lawfully Present in the United

States Enrolled in a Qualified Health Plan ... 19

Determining the Premium for the Applicable

Second Lowest Cost Silver Plan (SLCSP) ... 27

Allocating Policy Amounts for Individuals With

No One in Their Tax Family ............... 27

Allocation of Policy Amounts Among Three or

More Taxpayers ....................... 28

Alternative Calculation for Year of Marriage ..... 38

Self-Employed Health Insurance Deduction

and PTC ............................. 47

How To Get Tax Help ....................... 63

Index .................................. 68

Future Developments

For the latest information about developments related to

Pub. 974, such as legislation enacted after it was

published, go to IRS.gov/Pub974.

What’s New

New Form 7206. Form 7206, Self-Employed Health In-

surance Deduction, and its separate instructions have re-

placed Worksheet 6-A, Self-Employed Health Insurance

Deduction Worksheet, that was previously published in

Pub. 535, Business Expenses. Use Form 7206 and its in-

structions to determine any amount of the self-employed

health insurance deduction you may be able to claim and

report on Schedule 1 (Form 1040), line 17.

New employer-coverage affordability rule for family

members of employees. For tax years beginning after

December 31, 2022, for purposes of determining eligibility

for the PTC, affordability of employer coverage for an em-

ployee's spouse or dependent eligible to enroll in the em-

ployer coverage is no longer based on the employee’s

share of the premium to cover only the employee.

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Affordability of the employer coverage for these family

members is now based on the portion of the annual pre-

mium the employee must pay for coverage of the em-

ployee and these other family members.

Applicable federal poverty line percentages. For tax

years 2023 through 2025, taxpayers with household in-

come that exceeds 400% of the federal poverty line for

their family size may be allowed a PTC.

Reminders

Health Coverage Tax Credit (HCTC). The HCTC ex-

pired on December 31, 2021. Beginning in tax year 2022,

Form 8885 and its instructions have been discontinued by

the IRS.

Health reimbursement arrangements (HRAs). Begin-

ning in 2020, employers can offer individual coverage

health reimbursement arrangements (individual coverage

HRAs) to help employees and their families with their

medical expenses. If you are offered an individual cover-

age HRA, see Individual Coverage HRAs, later, for more

information on whether you can claim a PTC for you or a

member of your family for Marketplace coverage.

Qualified small employer health reimbursement ar-

rangement (QSEHRA). Under a QSEHRA, an eligible

employer can reimburse eligible employees for medical

expenses, including premiums for Marketplace health in-

surance. If you were provided a QSEHRA, your employer

should have reported the annual permitted benefit in

box 12 of your Form W-2 with code FF. If the QSEHRA is

considered affordable coverage for a month, no premium

tax credit (PTC) is allowed for the month. If the QSEHRA

is not considered affordable coverage for a month, you

may still be eligible for the PTC but you must reduce the

monthly PTC (but not below -0-) by the monthly permitted

benefit amount. For more information, see Qualified Small

Employer Health Reimbursement Arrangement, later.

Requirement to reconcile advance payments of the

premium tax credit. If you, your spouse with whom you

are filing a joint return, or a dependent was enrolled in

coverage through the Marketplace for 2023 and advance

payments of the premium tax credit (APTC) were made for

this coverage, you must file a 2023 return and attach Form

8962 to claim a net PTC. You (or whoever enrolled you)

should have received Form 1095-A, Health Insurance

Marketplace Statement, from the Marketplace with infor-

mation about your coverage and any APTC. You must at-

tach Form 8962 even if someone else enrolled you, your

spouse, or your dependent. If you are a dependent who is

claimed on someone else's 2023 return, you do not have

to attach Form 8962.

Report changes in circumstances when you re-enroll

in coverage and during the year. If APTC is being paid

for an individual in your tax family (defined later) and you

have had certain changes in circumstances (see the ex-

amples below), it is important that you report them to the

Marketplace where you enrolled in coverage. 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. Adjust-

ing your APTC when you re-enroll in coverage and during

the year can help you avoid owing tax when you file your

tax return. Changes that you should report to the Market-

place include the following.

•

Changes in household income.

•

Moving to a different address.

•

Gaining or losing eligibility for other health care cover-

age.

•

Gaining, losing, or other changes to employment.

•

Birth or adoption.

•

Marriage or divorce.

•

Other changes affecting the composition of your tax

family.

For more information on how to report a change in

circumstances to the Marketplace, go to HealthCare.gov

or your state Marketplace website.

Health insurance options. If you need health coverage,

go to HealthCare.gov to learn about health insurance op-

tions that are available for you and your family, how to pur-

chase health insurance, and how you might qualify to get

financial assistance with the cost of insurance.

Additional information. For additional information about

the tax provisions of the Affordable Care Act (ACA), in-

cluding the individual shared responsibility provisions and

the PTC, see IRS.gov/Affordable-Care-Act/Individuals-

and-Families or call the IRS Healthcare Hotline for ACA

questions (800-919-0452).

Photographs of missing children. The Internal Reve-

nue Service is a proud partner with the National Center for

Missing & Exploited Children® (NCMEC). Photographs of

missing children selected by the Center may appear in

this publication on pages that would otherwise be blank.

You can help bring these children home by looking at the

photographs and calling 1-800-THE-LOST

(1-800-843-5678) if you recognize a child.

Introduction

This publication covers the following general topics, relat-

ing to the PTC, which are also covered in the Form 8962

instructions.

•

What is the PTC?

•

Who must file Form 8962.

•

Who can take the PTC. (See Figure A, later.)

This publication also provides additional instructions for

taxpayers in the following special situations.

•

Taxpayers who take the PTC and who are filing a sep-

arate return from their spouses because of domestic

abuse or spousal abandonment.

•

Taxpayers who take the PTC and who are also provi-

ded a QSEHRA.

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•

Taxpayers who need to calculate the PTC and APTC

for a policy that covered an individual not lawfully

present in the United States.

•

Taxpayers who need to determine the applicable sec-

ond lowest cost silver plan (SLCSP) premium.

•

Taxpayers who need to allocate policy amounts for in-

dividuals not included in any tax family.

•

Taxpayers who need to allocate policy amounts be-

cause one qualified health plan covers individuals

from three or more tax families in the same month.

•

Taxpayers who married during the tax year and want

to use an alternative PTC calculation that may lower

their taxes.

•

Self-employed taxpayers who wish to take the PTC

and the self-employed health insurance deduction.

This publication also provides additional information to

help you determine if your health care coverage is mini-

mum essential coverage (MEC).

Comments and suggestions. We welcome your com-

ments about this publication and suggestions for future

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue

Service, Tax Forms and Publications, 1111 Constitution

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each com-

ment received, we do appreciate your feedback and will

consider your comments and suggestions as we revise

our tax forms, instructions, and publications. Don’t send

tax questions, tax returns, or payments to the above ad-

dress.

Getting answers to your tax questions. If you have

a tax question not answered by this publication or the How

To Get Tax Help section at the end of this publication, go

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search

feature or viewing the categories listed.

Getting tax forms, instructions, and publications.

Go to IRS.gov/Forms to download current and prior-year

forms, instructions, and publications.

Ordering tax forms, instructions, and publications.

Go to IRS.gov/OrderForms to order current forms, instruc-

tions, and publications; call 800-829-3676 to order

prior-year forms and instructions. The IRS will process

your order for forms and publications as soon as possible.

Don’t resubmit requests you’ve already sent us. You can

get forms and publications faster online.

Questions about Form 1095-A, Health Insurance

Marketplace Statement. If you or a member of your tax

family was enrolled in a qualified health plan through a

Marketplace in 2023, you should have received a Form

1095-A by early February 2024. Contact your Marketplace

if you do not receive a Form 1095-A or if you have ques-

tions about the accuracy of your Form 1095-A.

Useful Items

You may want to see:

Form (and Instructions)

1095-A Health Insurance Marketplace Statement

1095-B Health Coverage

1095-C Employer-Provided Health Insurance Offer

and Coverage

7206 Self-Employed Insurance Deduction

8962 Premium Tax Credit (PTC)

See How To Get Tax Help, at the end of this publication,

for information about getting publications and forms.

What Is the Premium Tax Credit

(PTC)?

Premium tax credit (PTC). The PTC is a tax credit for

certain people who enroll, or whose family member en-

rolls, in a qualified health plan offered through a Market-

place. The credit provides financial assistance to pay the

premiums for the qualified health plan by reducing the

amount of tax you owe, giving you a refund, or increasing

your refund amount. You must file Form 8962 to compute

and take the PTC on your tax return.

Advance payments of the premium tax credit (APTC).

The APTC is a payment made during the year to your in-

surance provider that pays for part or all of the premiums

for a qualified health plan covering you or an individual in

your tax family. Your APTC eligibility is based on the Mar-

ketplace’s estimate of the PTC you will be able to take on

your tax return. If APTC was paid for you or an individual in

your tax family, you must file Form 8962 to reconcile (com-

pare) this APTC with your PTC. If the APTC is more than

your PTC, you have excess APTC and you must repay the

excess, subject to certain limitations. If the APTC is less

than the PTC, you can get a credit for the difference, which

reduces your tax payment or increases your refund.

Changes in circumstances. The Marketplace deter-

mined your eligibility for, and the amount of, your 2023

APTC using projections of your income and the number of

individuals you certified to the Marketplace would be in

your tax family (yourself, spouse, and dependents) when

you enrolled in a qualified health plan. If this information

changed during 2023 and you did not promptly report it to

the Marketplace, the amount of APTC paid may be sub-

stantially different from the amount of PTC you can take on

your tax return. See Report changes in circumstances

when you re-enroll in coverage and during the year, ear-

lier, for changes that can affect the amount of your PTC.

1095-A

1095-B

1095-C

7206

8962

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Who Must File Form 8962

You must file Form 8962 with your income tax return (Form

1040, 1040-SR, or 1040-NR) if any of the following apply

to you.

•

You are taking the PTC.

•

APTC was paid for you or another individual in your

tax family.

•

APTC was paid for an individual you told the Market-

place would be in your tax family and neither you nor

anyone else included that individual in a tax family.

See Individual you enrolled who is not included in a

tax family under Lines 12 Through 23—Monthly Cal-

culation in the Form 8962 instructions.

If any of the circumstances above apply to you, you

must file an income tax return and attach Form 8962 even

if you are not otherwise required to file. You must use

Form 1040, 1040-SR, or 1040-NR. For help in determining

which of these forms to file, see the Instructions for Form

1040 or the Instructions for Form 1040-NR.

If you are filing Form 8962, you cannot file Form

1040-SS or 1040-PR.

If someone else enrolled an individual in your tax family

in coverage, and APTC was paid for that individual’s cov-

erage, you must file Form 8962 to reconcile the APTC. You

need to obtain a copy of the Form 1095-A from the person

who enrolled the individual.

If you are claimed as a dependent, the person

who claims you will file Form 8962 to take the PTC

and, if necessary, repay excess APTC for your

coverage. You do not need to file Form 8962.

Who Can Take the PTC

You can take the PTC for 2023 if you meet the conditions

under (1), (2), and (3) below.

1. For at least 1 month of the year, all of the following

were true.

a. An individual in your tax family was enrolled in a

qualified health plan offered through the Market-

place on the first day of the month.

b. That individual was not eligible for MEC for the

month, other than individual market coverage. An

individual is generally considered eligible for MEC

for the month only if they were eligible for every

day of the month (see Minimum Essential Cover-

age, later).

c. The portion of the enrollment premiums (descri-

bed later) for the month for which you are respon-

sible was paid by the due date of your tax return

(not including extensions). However, if you

CAUTION

TIP

became eligible for APTC because of a successful

eligibility appeal and you retroactively enrolled in

the plan, then the portion of the enrollment pre-

mium for which you are responsible must be paid

on or before the 120th day following the date of

the appeals decision.

2. No one can claim you as a dependent for the year.

3. You are an applicable taxpayer for 2023. To be an ap-

plicable taxpayer, you must meet all of the following

requirements.

a. Your household income for 2023 is at least 100%

of the federal poverty line for your family size (see

Line 4 in the Form 8962 instructions). However,

having household income below 100% of the fed-

eral poverty line will not disqualify you from taking

the PTC if you meet certain requirements descri-

bed under Household income below 100% of the

federal poverty line under Line 5 in the Form 8962

instructions.

b. If you were married at the end of 2023, you must

generally file a joint return. However, filing a sepa-

rate return from your spouse will not disqualify you

from being an applicable taxpayer if you meet cer-

tain requirements described under Married tax-

payers, later.

You are not entitled to the PTC for health coverage for

an individual for any period during which the individual is

not lawfully present in the United States.

For additional requirements and more details, see Ap-

plicable taxpayer, later.

Terms You May Need To Know

The terms defined below are generally the same as those

in the Form 8962 instructions. However, additional infor-

mation is provided below on what documentation to keep

if you are a victim of domestic abuse or spousal abandon-

ment, and on MEC, later.

Tax family. For purposes of the PTC, your tax family con-

sists of the following individuals.

•

You, if you file a tax return for the year and you can't be

claimed as a dependent on someone else's 2023 tax

return.

•

Your spouse if filing jointly and they can't be claimed

as a dependent on someone else's 2023 tax return.

•

Your dependents whom you claim on your 2023 tax re-

turn. If you are filing Form 1040-NR, you should in-

clude your dependents in your tax family only if you

are a U.S. national; a resident of Canada, Mexico, or

South Korea; or a resident of India who was a student

or business apprentice.

Your family size equals the number of qualifying individ-

uals in your tax family (including yourself).

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Figure A. Can You Take the PTC?

This flowchart can help you determine whether you can take the PTC. But do not rely on this flowchart alone. Be sure you

read Who Can Take the PTC, earlier, or in the Form 8962 instructions.

Were any of the individuals included in your tax family enrolled in a qualied

health plan through the Marketplace for at least 1 month during 2023?

Were any of these individuals eligible for MEC (other than individual

market coverage) for the months they were enrolled in the qualied health

plan? (See Minimum Essential Coverage, later.)

Can someone else claim you asadependent

on another tax return for 2023?

Were you married at the end of 2023?

Are you and your spouse ling a joint return?

Are youavictim of domestic abuse or spousal abandonment?

Do you meet the requirements for Married persons who live apart

under Head of Household in the Instructions for Form 1040, or

Married Filing Separately under Filing Status in the Form 1040-NR

instructions?

Was your household income at least 100% of the federal poverty

line for your family size? (See the Form 8962 instructions.)

You cannot take the PTC.

Yes

Start here

Yes

Was APTC paid for 1 or more months during 2023?

Yes

You may be able to take the PTC.

Was at least one individual enrolled inaqualied

health plan lawfully present in the United States?

Yes

Was at least one enrolled individual ineligible

for Medicaid due to immigration status?

Yes

At the time of enrollment, did the Marketplace estimate that your household income would be at least

100% of the federal poverty line for your family size for 2023?

Were all of these individuals eligible for MEC for

all of the months they were enrolled in the

qualied health plan?

Yes

Was everyone in your tax family a U.S. citizen?

Were the premiums paid by the due date of

your tax return (not including extensions)?

(A different due date applies in the case of a

successful eligibility appeal. See Enrollment

premiums.)

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Note. Listing your dependents by name and social se-

curity number (SSN) or individual taxpayer identification

number (ITIN) on your tax return is the same as claiming

them as a dependent. If you have more than four depend-

ents, see the Instructions for Form 1040 or the Instructions

for Form 1040-NR.

Household income. For purposes of the PTC, house-

hold income is the modified adjusted gross income (modi-

fied AGI) of you and your spouse (if filing a joint return)

(see Line 2a in the Form 8962 instructions) plus the modi-

fied AGI of each individual whom you claim as a depend-

ent and who is required to file an income tax return be-

cause their income meets the income tax return filing

threshold (see Line 2b in the Form 8962 instructions).

Household income does not include the modified AGI of

those individuals whom you claim as dependents and who

are filing a 2023 return only to claim a refund of withheld

income tax or estimated tax.

Modified AGI. 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 taxa-

ble). Use Worksheet 1-1 and Worksheet 1-2 in the Form

8962 instructions to determine your modified AGI.

Taxpayer's tax return including income of a de-

pendent child. A taxpayer who includes the gross in-

come of a dependent child on the taxpayer’s tax return

must include on Worksheet 1-2 the child’s tax-exempt in-

terest and the portion of the child’s social security benefits

that is not taxable.

Coverage family. Your coverage family includes all indi-

viduals in your tax family who are enrolled in a qualified

health plan and are not eligible for MEC (other than indi-

vidual market coverage). The individuals included in your

coverage family may change from month to month. If an

individual in your tax family is not enrolled in a qualified

health plan, or is enrolled in a qualified health plan but is

eligible for MEC (other than individual market coverage),

they are not part of your coverage family. Your PTC is

available to help you pay only for the coverage of the indi-

viduals included in your coverage family.

Monthly credit amount. The monthly credit amount is

the amount of your tax credit for a month. Your PTC for the

year is the sum of all of your monthly credit amounts. Your

credit amount for each month is the lesser of:

•

The enrollment premiums (described next) for the

month for one or more qualified health plans in which

you or any individual in your tax family enrolled, or

•

The amount of the monthly applicable SLCSP pre-

mium (described later) less your monthly contribution

amount (described later).

To qualify for a monthly credit amount, at least one indi-

vidual in your tax family must be enrolled in a qualified

health plan on the first day of that month. Generally, if cov-

erage 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. However, if an individual

in your tax family enrolled in a qualified health plan in 2023

and the enrollment was effective on the date of the individ-

ual's birth, adoption, or placement for adoption or in foster

care, or on the effective date of a court order placing the

individual with your family, the individual is treated as en-

rolled as of the first day of that month. Therefore, the indi-

vidual may be a member of your tax family and coverage

family for the entire month for purposes of computing your

monthly credit amount.

Enrollment premiums. The enrollment premiums are

the total amount of the premiums for the month, reduced

by any premium amounts for that month that were refun-

ded in the same tax year as the premium liability was in-

curred, for one or more qualified health plans in which any

individual in your tax family enrolled. Form 1095-A, Part III,

column A, reports the enrollment premiums.

You are generally not allowed a monthly credit amount

for the month if any part of the enrollment premiums for

which you are responsible that month has not been paid

by the due date of your tax return (not including exten-

sions). However, if you became eligible for APTC because

of a successful eligibility appeal and you retroactively en-

rolled 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.

Premiums another person pays on your behalf are treated

as paid by you.

If your share of the enrollment premiums is not paid, the

issuer may terminate coverage. The termination is gener-

ally effective no sooner than the second month of nonpay-

ment. For any months you were covered but did not pay

your share of the premiums, you are not allowed a monthly

credit amount.

Applicable SLCSP premium. The applicable SLCSP

premium is the second lowest cost silver plan premium of-

fered through the Marketplace where you reside that ap-

plies to your coverage family (described earlier). The

SLCSP premium is not the same as your enrollment pre-

mium unless you enroll in the applicable SLCSP. Form

1095-A, Part III, column B, generally reports the applicable

SLCSP premium. If no APTC was paid for your coverage,

Form 1095-A, Part III, column B, may be wrong or blank or

may report your applicable SLCSP premium as -0-. Also, if

you had a change in circumstances during 2023 that you

did not report to the Marketplace, the SLCSP premium re-

ported on Form 1095-A in Part III, column B, may be

wrong. In either case, you must determine your correct ap-

plicable SLCSP premium. You do not have to request a

corrected Form 1095-A from the Marketplace. See Miss-

ing or incorrect SLCSP premium on Form 1095-A under

Line 10 in the Form 8962 instructions.

Monthly contribution amount. Your monthly contri-

bution amount is used to calculate your monthly credit

amount. It is the amount of your household income you

would be responsible for paying as your share of premi-

ums each month if you enrolled in the applicable SLCSP. It

is not based on the amount of premiums you paid out of

pocket during the year. You will compute your monthly

contribution amount in Part I of Form 8962.

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Qualified health plan. For purposes of the PTC, a quali-

fied health plan is a health insurance plan or policy pur-

chased through a Marketplace at the bronze, silver, gold,

or platinum level. Throughout this publication, a qualified

health plan is also referred to as a “policy.” Catastrophic

health plans and stand-alone dental plans purchased

through the Marketplace, and all plans purchased through

the Small Business Health Options Program (SHOP), are

not qualified health plans for purposes of the PTC. There-

fore, they do not qualify a taxpayer to take the PTC.

Applicable taxpayer. You must be an applicable tax-

payer to take the PTC. Generally, you are an applicable

taxpayer if your household income for 2023 (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 in the

Form 8962 instructions) and no one can claim you as a

dependent for 2023. In addition, if you were married at the

end of 2023, you must file a joint return to be an applicable

taxpayer unless you meet one of the exceptions described

under Married taxpayers, later.

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 in the Form

8962 instructions. However, the exception described un-

der Estimated household income at least 100% of the fed-

eral poverty line in the Form 8962 instructions does not

apply if, with intentional or reckless disregard for the facts,

you provide incorrect information to the Marketplace for

the year of coverage. You provide information with inten-

tional disregard for the facts if you know that the informa-

tion provided is inaccurate. You provide information with a

reckless disregard for the facts if you make little or no ef-

fort to determine whether the information provided is accu-

rate and your lack of effort to provide accurate information

is substantially different from what a reasonable person

would do under the circumstances.

Individuals who are incarcerated. Individuals who are

incarcerated (other than pending disposition of charges,

for example, awaiting trial) are not eligible for coverage in

a qualified health plan through a Marketplace. However,

these individuals may be applicable taxpayers and take

the PTC for the coverage of individuals in their tax families

who are eligible for coverage in a qualified health plan.

Individuals who are not lawfully present. Individuals

who are not lawfully present in the United States are not

eligible for coverage in a qualified health plan through a

Marketplace. They cannot take the PTC for their own cov-

erage and are not eligible for the repayment limitations in

Table 5 (in the Form 8962 instructions) for APTC paid for

their own coverage. However, these individuals may be

applicable taxpayers and take the PTC for the coverage of

individuals in their tax families, such as their children, who

are lawfully present and eligible for coverage in a qualified

health plan. For more information about who is treated as

lawfully present for this purpose, go to HealthCare.gov.

See Individuals Not Lawfully Present in the United States

Enrolled in a Qualified Health Plan, later, for more informa-

tion on reconciling APTC when an unlawfully present per-

son is enrolled individually or with lawfully present family

members.

Married taxpayers. If you are considered married for

federal income tax purposes, you must file a joint return

with your spouse to take the PTC unless one of the two

exceptions below applies to you.

You are not considered married for federal income tax

purposes if you are divorced or legally separated accord-

ing to your state law under a decree of divorce or separate

maintenance. In that case, you cannot file a joint return but

may be able to take the PTC on your separate return. See

Pub. 501, Dependents, Standard Deduction, and Filing In-

formation.

If you are considered married for federal income tax

purposes, you may be eligible to take the PTC without fil-

ing a joint return if one of the two exceptions below applies

to you. If Exception 1 applies, you can file a return using

head of household or single filing status and take the PTC.

If Exception 2 applies, you are treated as married but can

take the PTC with the filing status of married filing sepa-

rately.

Exception 1—Certain married persons living apart.

You may file your return as if you are unmarried and take

the PTC if one of the following applies to you.

•

You file a separate return from your spouse on Form

1040 or 1040-SR because you meet the requirements

for Married persons who live apart under Head of

Household in the Instructions for Form 1040.

•

You file as single on your Form 1040-NR because you

meet the requirements for Married persons who live

apart under Married Filing Separately in the Instruc-

tions for Form 1040-NR.

Exception 2—Victim of domestic abuse or spousal

abandonment. If you are a victim of domestic abuse or

spousal abandonment, you can file a return as married fil-

ing separately and take the PTC for 2023 if all of the fol-

lowing apply to you.

•

You are living apart from your spouse at the time you

file your 2023 tax return.

•

You are unable to file a joint return because you are a

victim of domestic abuse (described next) or spousal

abandonment (described below).

•

You check the box on your Form 8962 to certify that

you are a victim of domestic abuse or spousal aban-

donment.

•

You have not used this exception to take the PTC in

each of 2020, 2021, and 2022.

Domestic abuse. Domestic abuse includes physical,

psychological, sexual, or emotional abuse, including ef-

forts to control, isolate, humiliate, and intimidate, or to un-

dermine the victim's ability to reason independently. All

the facts and circumstances are considered in determin-

ing whether an individual is abused, including the effects

of alcohol or drug abuse by the victim’s spouse. Depend-

ing on the facts and circumstances, abuse of an individu-

al’s child or other family member living in the household

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may constitute abuse of the individual. If you have con-

cerns 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). For

additional information and resources, see Pub. 3865, Tax

Information for Survivors of Domestic Abuse, available at

IRS.gov/Pub3865; and Part V of Form 8857, Request for

Innocent Spouse Relief, available at IRS.gov/Form8857.

Spousal abandonment. A taxpayer is a victim of

spousal abandonment for a tax year if, taking into account

all facts and circumstances, the taxpayer is unable to lo-

cate their spouse after reasonable diligence.

Records of domestic abuse and spousal abandon-

ment. If you checked the box in the upper right corner of

Form 8962 indicating that you are eligible for the PTC de-

spite having a filing status of married filing separately, you

should keep records relating to your situation, like with all

aspects of your tax return. What you have available may

depend on your circumstances. However, the following list

provides some examples of records that may be useful.

(Do not attach these records to your tax return.)

•

Protective and/or restraining order.

•

Police report.

•

Doctor’s report or letter.

•

A statement from someone who was aware of, or who

witnessed, the abuse or the results of the abuse. The

statement should be notarized if possible.

•

A statement from someone who knows of the aban-

donment. The statement should be notarized if possi-

ble.

Married filing separately. If you file as married filing

separately and are not a victim of domestic abuse or

spousal abandonment (see Exception 2—Victim of do-

mestic abuse or spousal abandonment under Married tax-

payers, earlier), then you are not an applicable taxpayer

and you cannot take the PTC. You must generally repay all

of the APTC paid for a qualified health plan that covered

only individuals in your tax family. If the policy also cov-

ered at least one individual in your spouse’s tax family, you

must generally repay half of the APTC paid for the policy.

See Line 9 in the Form 8962 instructions. However, the

amount of APTC you have to repay may be limited. See

Line 28 in the Form 8962 instructions.

Minimum Essential Coverage

(MEC)

Under the health care law, certain health coverage is

called MEC. You generally cannot take the PTC for an indi-

vidual in your tax family for any month that the individual is

eligible for MEC, except for individual market coverage

(defined below). MEC includes the following.

•

Individual market coverage (including qualified health

plans).

•

Most coverage through government-sponsored pro-

grams (including Medicaid coverage, Medicare Part A

or C, the Children's Health Insurance Program (CHIP),

certain benefits for veterans and their families, TRI-

CARE, and health coverage for Peace Corps volun-

teers).

•

Most types of employer-sponsored coverage.

•

Grandfathered health plans.

•

Other health coverage designated by the Department

of Health and Human Services (HHS) as MEC.

MEC does not include coverage consisting solely

of excepted benefits. Excepted benefits include

vision and dental coverage not part of a compre-

hensive health insurance plan, workers’ compensation

coverage, and coverage limited to a specified disease or

illness.

For more information on what is MEC, see IRS.gov/

Affordable-Care-Act/Individuals-and-Families/Individual-

Shared-Responsibility-Provision.

Note. Your MEC may be reported to you on Form

1095-A, 1095-B, or 1095-C.

MEC eligibility when Marketplace does not discon-

tinue APTC. If an individual in your tax family is enrolled

in a qualified health plan for which APTC was made and

the individual is or will soon become eligible for other

MEC, you must notify the Marketplace about the other

MEC and that the APTC for the individual’s coverage

should be discontinued. If the Marketplace does not dis-

continue APTC for the first calendar month beginning after

the month you notify the Marketplace, the individual is

treated as eligible for the other MEC no earlier than the

first day of the second calendar month beginning after the

first month the individual may enroll in the other MEC. A

different rule applies to Medicaid and CHIP eligibility, dis-

cussed later under Government-Sponsored Programs.

Expatriate Health Plans

In general, an expatriate health plan is certain health in-

surance coverage that is offered to foreign nationals who

are temporarily assigned for work in the United States,

U.S. residents who are temporarily working outside of the

United States, and certain nonemployees (such as stu-

dents and missionaries) who are traveling internationally.

To qualify, the health insurance coverage must generally

offer a minimum level of benefits in the region in which the

covered individual is temporarily located and be offered by

a qualifying expatriate health insurance issuer. An expatri-

ate health plan is considered employer-sponsored cover-

age for a primary insured who receives it through their em-

ployer (and for that employee’s covered dependents). It is

considered individual market coverage for any other pri-

mary insured.

TIP

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Individual Market Coverage

A health plan offered in the individual market is health in-

surance coverage provided to an individual by a health in-

surance issuer licensed by a state, including a qualified

health plan offered through the Marketplace. Even though

these plans are MEC, eligibility for individual market cover-

age does not prevent an individual from qualifying for the

PTC for coverage in a qualified health plan purchased

through the Marketplace.

Individual market coverage also includes coverage un-

der certain expatriate health plans offered to students and

religious missionaries traveling internationally. See Expa-

triate Health Plans, earlier.

Government-Sponsored Programs

The following government-sponsored programs are MEC.

1. Medicare Part A coverage.

2. Medicare Advantage plans.

3. Medicaid, except for the following programs.

a. Optional coverage of family planning services.

b. Optional coverage of tuberculosis-related serv-

ices.

c. Coverage of pregnancy-related services in states

that do not provide full Medicaid benefits on the

basis of pregnancy.

d. Coverage limited to the treatment of emergency

medical conditions.

e. Coverage of medically needy individuals (except

for coverage for medically needy individuals that

HHS has designated as MEC—see Other Cover-

age Designated by the Department of Health and

Human Services, later).

f. Coverage under a section 1115 demonstration

waiver program (except for coverage under a sec-

tion 1115 demonstration program that HHS has

designated as MEC—see Other Coverage Desig-

nated by the Department of Health and Human

Services, later).

Call your state Medicaid office if you have any

questions about the coverage you have.

4. CHIP, except certain CHIP coverage for pregnancy

services. (Certain coverage often called a CHIP

buy-in program is not considered a government-spon-

sored program and is discussed later under Other

Coverage Designated by the Department of Health

and Human Services.)

5. Coverage under the TRICARE program, except for the

following programs.

a. Coverage on a space-available basis in a military

treatment facility for individuals who are not eligi-

ble for TRICARE coverage for private sector care.

b. Coverage for a line-of-duty-related injury, illness,

or disease for individuals who have left active duty.

6. The following coverage administered by the Depart-

ment of Veterans Affairs.

a. Coverage consisting of the medical benefits pack-

age for eligible veterans.

b. Civilian Health and Medical Program of the De-

partment of Veterans Affairs (CHAMPVA).

c. Comprehensive health care for children suffering

from spina bifida who are the children of Vietnam

veterans and veterans of covered service in Ko-

rea.

7. Health coverage provided to Peace Corps volunteers.

8. Refugee Medical Assistance.

9. Coverage through a Basic Health Program (BHP)

standard health plan.

In general, you cannot get the PTC for your coverage in

a qualified health plan if you are eligible for govern-

ment-sponsored MEC. You are generally considered eligi-

ble for a government-sponsored program if you meet the

criteria for coverage under the program. But see Excep-

tions, later. However, you will not lose the PTC for your

coverage until the first day of the first full month you can

receive benefits under the government-sponsored pro-

gram. If you can be covered under a government-spon-

sored program, you must complete the requirements nec-

essary to receive benefits (for example, submitting an

application or providing required information) by the last

day of the third full calendar month following the event that

establishes eligibility (for example, becoming eligible for

Medicare when you turn 65). If you do not complete the

necessary requirements in this time, you will lose the PTC

for your coverage in a qualified health plan beginning with

the first day of the fourth calendar month following the

event that makes you eligible for the government cover-

age.

Example 1. Ellen was enrolled in a qualified health

plan with APTC. She turned 65 on June 3 and became eli-

gible for Medicare. Ellen must apply to Medicare to re-

ceive benefits. She applied to Medicare in September and

was eligible to receive Medicare benefits beginning on

December 1. Ellen completed the requirements necessary

to receive Medicare benefits by September 30 (the last

day of the third full calendar month after the event that es-

tablished her eligibility, turning 65). She was eligible for

Medicare coverage on December 1, the first day of the

first full month that she could receive benefits. Thus, Ellen

can get the PTC for her coverage in the qualified health

plan for January through November. Beginning in Decem-

ber, Ellen cannot get the PTC for her coverage in the quali-

fied health plan because she is eligible for Medicare.

Example 2. The facts are the same as in Example 1,

except that Ellen did not apply for the Medicare coverage

by September 30. Ellen is considered eligible for govern-

ment-sponsored coverage beginning on October 1. She

can get the PTC for her coverage for January through

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September. She cannot get the PTC for her coverage in a

qualified health plan as of October 1, the first day of the

fourth month after she turned 65.

Exceptions. While you are generally considered eligible

for government-sponsored MEC (and are ineligible for the

PTC) if you are able to enroll in that coverage, you are

considered eligible for government-sponsored coverage

under the following programs only if you are enrolled in

the program.

1. A veteran’s health care program listed in (6), earlier.

2. The following TRICARE programs.

a. The Continued Health Care Benefit Program.

b. Retired Reserve.

c. Young Adult.

d. Reserve Select.

3. Medicaid coverage for comprehensive pregnancy-re-

lated services and CHIP coverage based on preg-

nancy, if the individual is enrolled in a qualified health

plan at the time the individual becomes eligible for

Medicaid or CHIP.

4. Coverage under Medicare Part A for which the individ-

ual must pay a premium.

In addition, an individual is considered eligible for MEC

under a Medicaid or Medicare program for which eligibility

requires a determination of disability, blindness, or illness

only when the responsible agency makes a favorable eligi-

bility determination.

Retroactive coverage. If APTC is being paid for cover-

age in a qualified health plan and you become eligible for

government-sponsored coverage that is effective retroac-

tively (such as Medicaid or CHIP), you will not retroac-

tively lose the PTC for your coverage. You can get the PTC

for your coverage until the first day of the first calendar

month after you are approved for the government cover-

age.

Example. In November, Freda enrolled in a qualified

health plan for the following year and got APTC for her

coverage. Freda lost her part-time job and on April 10 ap-

plied for coverage under the Medicaid program. Freda’s

application was approved on May 15, with Medicaid cov-

erage retroactively effective April 1. For purposes of the

PTC, Freda is considered eligible for government-spon-

sored coverage on June 1, the first day of the first calen-

dar month after her application was approved. Freda may

be eligible for the PTC for January through May.

Termination for nonpayment of premiums. If Med-

icaid or CHIP coverage for you or a family member is ter-

minated due to nonpayment of premiums, you cannot get

the PTC for the coverage of that individual (for the remain-

der of the year of the termination).

Determining eligibility for Medicaid or CHIP at enroll-

ment. An individual is treated as ineligible for Medicaid,

CHIP, and similar programs (such as a BHP) for the period

of coverage under a qualified health plan if, when the indi-

vidual enrolled in the qualified health plan, the Market-

place determined that the individual was ineligible for

Medicaid or CHIP based on the applicable Medicaid and

CHIP income standards. However, this exception does not

apply if you, or the individual you are including in your tax

family, with intentional or reckless disregard for the facts,

provided incorrect information to the Marketplace for the

year of coverage. You provide information with intentional

disregard for the facts if you know that the information pro-

vided is inaccurate. You provide information with a reck-

less disregard for the facts if you make little or no effort to

determine whether the information provided is accurate

and your lack of effort to provide accurate information is

substantially different from what a reasonable person

would do under the circumstances.

Example. In November, Catelyn enrolled in a qualified

health plan for the following year and got APTC for her

coverage. The Marketplace determined that Catelyn was

ineligible for Medicaid and estimated that her household

income will be 140% of the federal poverty line for her

family size for purposes of determining APTC. During the

year, Catelyn lost her job and her household income for

2023 is 130% of the federal poverty line (within the Medic-

aid income threshold). For purposes of the PTC, Catelyn

is treated as ineligible for Medicaid for 2023. Catelyn may

be eligible for the PTC for the entire year.

Medicaid or CHIP eligibility when Marketplace does

not discontinue APTC. If a determination is made that

an individual who is enrolled in a qualified health plan for

which APTC is made is eligible for Medicaid or CHIP but

the Marketplace does not discontinue APTC for the first

calendar month beginning after the eligibility determina-

tion, the individual is treated as eligible for Medicaid or

CHIP no earlier than the first day of the second calendar

month beginning after the eligibility determination.

Employer-Sponsored Plans

The following employer-sponsored plans are MEC.

1. Group health insurance coverage for employees un-

der:

a. An insured plan or coverage offered in the small or

large group market within a state;

b. A governmental plan, such as the Federal Employ-

ees Health Benefits Program; or

c. A grandfathered health plan offered in a group

market.

2. A self-insured group health plan for employees.

3. Coverage under certain expatriate health plans for

employees (discussed earlier).

4. The Nonappropriated Fund Health Benefits Program

of the Department of Defense.

In general, these employer-sponsored plans may also

include retiree or COBRA coverage.

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Employer-sponsored plans that are MEC are also refer-

red to as “eligible employer-sponsored plans.”

Exceptions. The following paragraphs discuss when em-

ployer-sponsored plans are not considered MEC and the

circumstances in which you may be eligible for the PTC

even if you have an offer of coverage under an em-

ployer-sponsored plan.

Excepted benefits. Employer-sponsored health cov-

erage that is limited to excepted benefits is not MEC. Ex-

cepted benefits include stand-alone vision and dental

plans, workers' compensation coverage, and coverage

limited to a specified disease or illness.

Affordability and minimum value. Even if you had

the opportunity to enroll in coverage offered by your em-

ployer that qualifies as MEC, you are considered eligible

for an employer-sponsored plan (and cannot get the PTC

for your coverage in a qualified health plan) only if the em-

ployer-sponsored coverage is affordable (defined later)

and the coverage provides minimum value (defined later).

Your tax family members may also be unable to get the

PTC for coverage in a qualified health plan for months they

were eligible to enroll in employer-sponsored coverage of-

fered to them by your employer but only if the coverage

qualifies as MEC and was affordable and provided mini-

mum value. In addition, if you or your family member en-

rolls in the employer coverage that qualifies as MEC, the

individual enrolled cannot get the PTC for coverage in a

qualified health plan, even if the employer coverage is not

affordable or does not provide minimum value.

Waiting periods and other periods without access

to benefits. You are not considered eligible for employer

coverage, and can get the PTC for your coverage in a

qualified health plan if you are otherwise eligible, for a

month when you cannot receive benefits under the em-

ployer coverage (for example, you are in a waiting period

before the employer coverage becomes effective). How-

ever, if you could have enrolled in employer coverage that

is MEC and is affordable and provides minimum value and

you did not enroll during an enrollment period, you cannot

get the PTC for your coverage in a qualified health plan for

the remainder of the plan year to which the enrollment pe-

riod related. If the enrollment period related to coverage

for more than one plan year, and you do not have another

opportunity to enroll in the employer coverage for plan

years following the initial plan year, you can take the PTC

for your coverage in a qualified health plan during those

later plan years, if you are otherwise eligible.

Coverage after employment ends. If your employ-

ment with an employer ends and you are offered employer

coverage by your former employer (for example, COBRA

or retiree coverage), you are considered eligible for that

employer coverage for PTC purposes only for the months

that you are enrolled in the employer coverage. This same

rule applies to an individual who may enroll in the cover-

age by reason of a relationship to a former employee.

Individual not in your tax family. An individual who

can enroll in your employer coverage who is not a member

of your tax family (for example, an adult non-dependent

child under age 26) is considered eligible for the employer

coverage for PTC purposes only for the months the indi-

vidual is enrolled in the employer coverage.

How to determine if the plan is affordable. Your em-

ployer coverage is generally considered affordable for you

if your share of the annual cost for self-only coverage,

which is sometimes referred to as the “employee required

contribution,” is not more than 9.12% of your tax family’s

household income for 2023. Your employer coverage is

generally considered affordable for the other members of

your tax family eligible to enroll in the coverage if your

share of the annual cost for coverage for you and your

other tax family members is not more than 9.12% of your

family’s household income for 2023. If your employer cov-

erage is affordable for you but not affordable for your other

family members, you may be able to take the PTC for your

other family members if they enroll in a Marketplace quali-

fied health plan. For 2024, this annual cost threshold will

decrease to 8.39%. However, employer-sponsored cover-

age is not considered affordable if, when you or a family

member enrolled in a qualified health plan, you gave accu-

rate information about the availability of employer cover-

age to the Marketplace, and the Marketplace determined

that you were eligible for APTC for the individual’s cover-

age in the qualified health plan. See Determining afforda-

bility at the time of enrollment, later, for more information

on this rule.

Certain employer arrangements. An employee’s re-

quired contribution for employer-sponsored coverage may

be affected by various arrangements offered by the em-

ployer.

Wellness program incentives. If the employer that

offered you (or your spouse) employer-sponsored cover-

age for 2023 also offered a wellness incentive that poten-

tially affected the amount that you had to pay toward cov-

erage, the following rules apply: If the condition for

satisfying the wellness incentive (in other words, the con-

dition the employee must meet to pay the smaller amount

for coverage) relates exclusively to tobacco use, your re-

quired contribution is based on the amount you would

have paid for coverage if you had satisfied the condition

for the wellness incentive. Wellness incentives relating ex-

clusively to tobacco use are treated as satisfied in deter-

mining your required contribution regardless of whether

you would have actually earned the incentive had you en-

rolled in the coverage. If factors other than tobacco use

are part of the condition for satisfying the wellness incen-

tive, your required contribution is based on the amount

you would have paid for coverage had you not satisfied

the wellness incentive.

Example. George can enroll in employer coverage.

George’s monthly premiums for self-only coverage are

$450. If George, who is a smoker, attends a smoking ces-

sation class, his monthly premiums will be reduced by

$100. If George completes a cholesterol screening, his

monthly premiums will be reduced by $50. Whether or not

George actually completes either of these wellness pro-

gram incentives, for purposes of determining whether the

coverage is affordable for George, his required

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contribution will be considered to be the amount reduced

by the $100 incentive for attending a smoking cessation

class but not reduced by the $50 incentive for completing

a cholesterol screening. Therefore, for purposes of deter-

mining whether his coverage is considered affordable,

George’s required contribution is $350.

Health reimbursement arrangements (HRAs). If the

employer that offered you employer-sponsored coverage

for 2023 also contributed (or offered to contribute) to an

HRA that may be used to pay premiums for the em-

ployer-sponsored coverage, your required contribution for

the employer-sponsored coverage is reduced by the

amount the employer contributed (or offered to contribute)

to the HRA for 2023, as long as you were informed of the

HRA contribution offer by a reasonable time before you

had to decide whether to enroll in the coverage. Employ-

ers may offer you alternative or additional HRA coverage.

See Individual coverage HRAs next.

Individual coverage HRAs. Starting in 2020, employ-

ers can offer individual coverage HRAs to help employees

and their families with their medical expenses. Under an

individual coverage HRA, employers can reimburse eligi-

ble employees for medical expenses, including premiums

for Marketplace health insurance.

If you were covered under an individual coverage HRA

for 2023, you are not allowed a PTC for your 2023 Market-

place health insurance. Also, if another member of your

tax family was covered under an individual coverage HRA

for 2023, you are not allowed a PTC for the family mem-

ber's 2023 Marketplace health insurance. If you or a family

member could have been covered by an individual cover-

age HRA for 2023, but you opted out of receiving reim-

bursements under the individual coverage HRA, you may

be allowed a PTC for your, and your family member's,

Marketplace health insurance if the individual coverage

HRA is considered unaffordable.

Qualified small employer health reimbursement ar-

rangements (QSEHRAs). If your employer provided you

with a QSEHRA, special rules apply. See Qualified Small

Employer Health Reimbursement Arrangement, later, for

more details.

Health flex contributions. If the employer that offered

you (or your spouse) employer-sponsored coverage for

2023 also made (or offered to make) a health flex contri-

bution for 2023, your required contribution for the em-

ployer-sponsored coverage is reduced by the amount of

the health flex contribution (or offer). A health flex contri-

bution is an employer contribution to a cafeteria plan that

may be used only to pay for medical care (and not taken

as cash or other taxable benefits) and is available for use

toward the purchase of MEC. Cafeteria plan contributions

that may be used for expenses other than medical care

are not health flex contributions and so do not reduce your

required contribution.

Opt-out payments. If the employer that offered you

(or your spouse) employer-sponsored coverage for 2023

offered you an additional payment if you declined to enroll

in the coverage (an “opt-out payment”), your required

contribution for employer-sponsored coverage is in-

creased by amounts that the employer offered to pay you

for declining the coverage. In some cases, an employer

may make this opt-out payment only if the employee both

declines the coverage and also satisfies another condition

(such as enrolling in coverage offered by the employee's

spouse). If your employer imposed other conditions on re-

ceiving the opt-out payment (in addition to declining the

employer's health coverage), you may treat the opt-out

payment as increasing the employee's required contribu-

tion only if you can demonstrate that you met the condi-

tions (such as enrolling in coverage offered by your spou-

se's employer).

More information about employer arrangements.

You should contact your employer if you have questions

about the effect of the employer arrangements described

above on your required contribution.

If your employer or the employer of a family mem-

ber offered MEC providing minimum value and

provided you a Form 1095-C and the employer

also offered a non-health flex contribution or an opt-out

payment, the amount reported on line 15 of Form 1095-C

may not accurately reflect the amount of your required

contribution for purposes of the PTC. If you have ques-

tions about the amount reported on line 15, contact your

employer using the contact number provided on the Form

1095-C.

Determining affordability at the time of enrollment.

Your employer coverage is not considered affordable if,

when you enroll in a qualified health plan, the Marketplace

determines that your required contribution for employer

coverage will be more than 9.12% of what the Market-

place estimates will be your household income and there-

fore that you are eligible for APTC for coverage in the

qualified health plan. Eligibility for employer coverage in

this situation does not disqualify you from taking the PTC

when you file your tax return, even if your required contri-

bution for coverage was not more than 9.12% of the

household income on your return. However, you will be

treated as eligible for affordable employer coverage based

on the household income on your tax return if:

•

You did not provide current information to the Market-

place relating to your household income and the re-

quired contribution for your employer coverage during

each annual re-enrollment period, or

•

You provided incorrect information to the Marketplace

about your required contribution with intentional or

reckless disregard for the facts.

You provide information with intentional disregard for

the facts if you know that the information provided is inac-

curate. You provide information with a reckless disregard

for the facts if you make little or no effort to determine

whether the information provided is accurate and your

lack of effort to provide accurate information is substan-

tially different from what a reasonable person would do

under the circumstances.

CAUTION

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The employer coverage offered by the various employ-

ers in the following examples qualifies as MEC.

Example 1. Celia is single and has no dependents.

Her household income for 2023 was $47,000. Celia’s em-

ployer offered its employees a health insurance plan that

provided minimum value and for which the required contri-

bution was $3,450 for self-only coverage for 2023 (7.34%

of Celia’s household income). Because Celia’s required

contribution for self-only coverage did not exceed 9.12%

of household income, her employer’s plan is considered

affordable for Celia, and Celia is considered eligible for

the employer coverage for all months in 2023. Celia can-

not get the PTC for coverage in a qualified health plan.

Example 2. The facts are the same as in Example 1,

except that Celia is married to Jon, they file a joint return

for 2023, and the employer’s plan required Celia to con-

tribute $5,300 for coverage for Celia and Jon for 2023

(11.28% of Celia’s household income). Because Celia’s

required contribution for coverage for herself and Jon ex-

ceeds 9.12% of household income, her employer’s plan is

considered not affordable for Jon and Jon is considered

not eligible for the employer coverage. Celia is, however,

considered eligible for the employer coverage for all

months in 2023 and cannot get the PTC for coverage in a

qualified health plan because her cost to enroll in the cov-

erage does not exceed 9.12% of their household income.

Jon is allowed a PTC if he does not enroll in the employer

coverage, enrolls in a qualified health plan through the

Marketplace for 1 or more months in 2023, and is other-

wise allowed a PTC.

Example 3. Don was eligible to enroll in employer cov-

erage in 2023. Don’s required contribution for self-only

coverage that provided minimum value was $3,550. Don

applied for coverage in a qualified health plan through the

Marketplace. The Marketplace projected that Don’s 2023

household income would be $37,000 and determined that

Don’s employer coverage was unaffordable because

Don’s required contribution was more than 9.12% of Don’s

household income. Don enrolled in a qualified health plan

through the Marketplace with APTC and not in the em-

ployer coverage. In December, Don received an unexpec-

ted $2,500 bonus, which increased his 2023 household

income to $39,500. Although Don’s required contribution

for the employer coverage was not more than 9.12% of the

household income on Don’s tax return, Don is considered

not eligible for the employer coverage for 2023 because

the Marketplace estimated that the employer coverage

would cost more than 9.12% of Don’s household income.

Don can get the PTC if he otherwise qualifies.

Example 4. Hal was eligible for employer coverage for

2023. His required contribution for self-only coverage was

$3,400, and Hal enrolled in the coverage. His household

income for 2023 was $33,000, which means that his re-

quired contribution was more than 9.12% of his household

income. Even though the employer coverage was not af-

fordable, Hal cannot get the PTC for coverage in a quali-

fied health plan because he enrolled in the employer cov-

erage.

Example 5. Elsa is married and has two dependent

children. Her household income for 2023 was $39,000. El-

sa’s employer offered only self-only coverage to employ-

ees. No family coverage was offered. The plan had a re-

quired contribution of $3,000 for self-only coverage for

2023 (7.69% of Elsa’s household income) and provided

minimum value. Because Elsa’s required contribution for

self-only coverage was not more than 9.12% of household

income, her employer’s plan is considered affordable for

Elsa. Thus, Elsa is considered eligible for the employer

coverage for 2023 and cannot get the PTC for coverage in

a qualified health plan. However, because Elsa’s employer

did not offer coverage to Elsa’s spouse and children, Elsa

could take the PTC for her spouse and two children if they

enrolled in a qualified health plan and otherwise qualify.

Determining affordability for part-year period. If

you are employed for part of a year or employed by differ-

ent employers during the year, you determine whether

your coverage is affordable by looking separately at each

coverage period that is less than a full calendar year. For

each period, the coverage is affordable if your required

contribution for the entire year would not be more than

9.12% of your household income for the year.

Example. Elvis was enrolled in a qualified health plan

without APTC beginning in January 2023. He began work-

ing for a new employer in May that offers health insurance

coverage with a calendar year plan year. Elvis’ required

contribution for the employer coverage for the remainder

of the year was $200/month, which would be $2,400 for

the full plan year. Elvis does not enroll in the employer

coverage or inform the Marketplace of the offer of em-

ployer coverage. Elvis’ household income for the year is

$20,000. Elvis’ employer coverage is considered unafford-

able for the period May through December because his

required contribution for the full plan year, $2,400, is more

than 9.12% of his household income. As a result, Elvis

could take the PTC for January through December if he

otherwise qualifies.

Coverage year not a calendar year. If your employ-

er’s plan year is not the calendar year and you are a calen-

dar year taxpayer, you determine whether your coverage

is affordable by looking separately at the portion of the cal-

endar year in each plan year. A coverage period in 2023

that falls in a plan year beginning in 2022 is considered af-

fordable if your required contribution for the entire plan

year is not more than 9.61% of your household income for

2023. A coverage period in 2023 that falls in a plan year

beginning in 2023 is considered affordable if your required

contribution for the entire plan year is not more than

9.12% of your household income for 2023.

The employer coverage offered by the various employ-

ers in the following examples qualifies as MEC.

Example 1. Tim’s employer offers health insurance

coverage with a plan year of July 1 through June 30. His

required contribution for the plan year that began on July

1, 2022, was $250 per month ($3,000 for the entire plan

year). Tim enrolled in a qualified health plan on January 1,

2023, and did not apply for APTC. Tim’s household

income for 2023 is $30,000. Tim’s required contribution for

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the plan year, $3,000, is 10% of his household income for

2023. Because 10% is more than 9.61% (the required

contribution percentage for the plan year beginning in

2022), Tim’s employer coverage for January 1, 2023,

through June 30, 2023, is not considered affordable, and

Tim can take the PTC for those months if he is otherwise

eligible.

For the plan year that began on July 1, 2023, Tim’s re-

quired contribution was reduced to $200 per month (or

$2,400 for the entire plan year). Tim’s required contribu-

tion of $2,400 is 8% of his 2023 household income. Be-

cause 8% is not more than 9.12% (the required contribu-

tion percentage for the plan year beginning in 2023), Tim’s

employer coverage for July 1, 2023, through December

31, 2023, is considered affordable and he is not eligible

for the PTC for those months.

Example 2. Maria’s employer offers health insurance

coverage with a plan year of September 1 through August

31. Maria’s required contribution for the employer cover-

age for the plan year September 1, 2023, through August

31, 2024, is $3,700. Maria’s household income for 2023 is

$37,000. Maria’s employer coverage is considered unaf-

fordable for the period September 1 through December

31, 2023, because her required contribution for the plan

year, $3,700, is more than 9.12% of her 2023 household

income. If Maria enrolls in a qualified health plan for 2024

and requests APTC, the Marketplace will determine

whether the employer coverage is considered affordable

for the period January 1, 2024, through August 31, 2024,

by comparing Maria’s required contribution for the plan

year beginning in 2023, $3,700, to her estimated 2024

household income.

How to determine if a plan provides minimum value.

An employer-sponsored plan provides minimum value

only if the plan pays at least 60% of the total allowed costs

of benefits for a standard population and provides sub-

stantial coverage of inpatient hospitalization services and

physician services. A plan meets the 60% rule only if an

employee’s expected cost-sharing (deductibles, co-pays,

and co-insurance) under the plan is no more than 40% of

the cost of the benefits. This percentage is based on ac-

tuarial principles using benefits provided to a standard

population and is not based on what you actually pay for

cost sharing.

Your employer must provide you with a summary of

benefits and coverage (SBC) on or before the first day of

the open enrollment period for the plan you are enrolled in

for the current coverage period. The employer must also

provide you with SBCs you request for other plans in

which you can enroll. If you are not enrolled in a plan, the

employer must provide you with the SBCs for all plans in

which you can enroll. The SBC will tell you whether an

employer-sponsored plan provides minimum value. If your

employer sent you a Form 1095-C, line 14 of that form will

include an indicator code telling you if your employer of-

fered you a health plan in the previous year that provided

minimum value.

Qualified Small Employer Health

Reimbursement Arrangement

(QSEHRA)

Under a QSEHRA, an eligible employer can reimburse eli-

gible employees for medical expenses, including premi-

ums for a qualified health plan purchased through the

Marketplace. An eligible employer is one that, in general,

employs fewer than 50 full-time employees and does not

offer a group health plan.

A QSEHRA is an arrangement that meets all the follow-

ing requirements.

1. The arrangement is funded solely by the employer,

and no salary reduction contributions may be made

under the arrangement.

2. The arrangement provides, after the eligible employee

provides proof of coverage, for the payment or reim-

bursement of the medical expenses incurred by the

employee or the employee's family members.

3. The amount of payments and reimbursements

doesn’t exceed $5,850 ($11,800 for family coverage)

for 2023.

4. The arrangement is generally provided on the same

terms to all eligible employees. However, the employ-

er's QSEHRA may exclude employees who haven't

completed 90 days of service, employees who haven't

attained age 25 before the beginning of the plan year,

part-time or seasonal employees, employees covered

by a collective bargaining agreement if health benefits

were the subject of good-faith bargaining, and em-

ployees who are nonresident aliens with no earned in-

come from sources within the United States.

If you are provided a QSEHRA, and it is considered af-

fordable coverage for a month, no PTC is allowed for that

month. If the QSEHRA is not considered affordable cover-

age for 1 or more months, you may still be eligible for the

PTC. If you are eligible for the PTC for any month for which

you are provided a QSEHRA, you must reduce your PTC

(but not below -0-) for that month by the monthly QSEHRA

permitted benefit amount. The monthly permitted benefit

amount is the maximum QSEHRA benefit amount an eligi-

ble employee is allowed per month. See Permitted benefit

reported on Form W-2, later, and Worksheet Q for more

information.

Written notice of QSEHRA. If you were provided a

QSEHRA during 2023, your employer should have provi-

ded written notice to you by the later of October 3, 2022,

or 90 days before the first day of the plan year of the

QSEHRA, or if you're an employee who is not eligible to

participate at the beginning of the year, the date on which

you're first eligible to participate in the QSEHRA. The in-

formation in this notice is necessary to determine how the

QSEHRA affects your PTC. The permitted benefit for

self-only coverage as reported by the employer in the

written notice is used to determine whether the QSEHRA

is considered affordable coverage, regardless of whether

the permitted benefit provided to you is for self-only or

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family coverage. If the notice provided to you does not in-

clude a permitted benefit amount for self-only coverage,

you must contact your employer to get that information.

Use Worksheet N to determine whether your QSEHRA is

considered affordable coverage for the months of the year

that you were provided the QSEHRA. You will need the

notice provided by your employer and the permitted bene-

fit for self-only coverage to complete Worksheet N.

Permitted benefit reported on Form W-2. Your em-

ployer should have reported your annual permitted benefit

(self-only or family amount, as applicable) in box 12 of

your Form W-2 with code FF. Your permitted benefit

amount, as reported to you by your employer on Form

W-2, is used to calculate the amount by which you must

reduce your PTC, if you are otherwise eligible for the PTC.

Use Worksheet Q to figure your monthly PTC for months

in which you were provided a QSEHRA.

APTC for 2023 and 2024. If APTC was paid for your

2023 Marketplace coverage, your QSEHRA permitted

benefit for 2023 was not considered by the Marketplace in

calculating the amount of your 2023 APTC. Furthermore, if

you requested APTC for your 2024 Marketplace coverage,

the Marketplace did not consider your 2024 permitted

benefit in calculating the amount of your 2024 APTC. If

you are provided a QSEHRA for 2024, you should contact

the Marketplace and ask the Marketplace to reduce the

amount of APTC to be paid on your behalf for 2024 to limit

the risk of having excess APTC for 2024.

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Worksheet N. Worksheet To Determine if the QSEHRA Is

Considered Affordable Keep for Your Records

Note. See Special instructions for Worksheet N if your SLCSP premium was not the same for all months of 2023 or you

changed employers during 2023.

1. Enter the amount from Form 8962, line 3 ......................................................

2. Multiply line 1 by 0.0912 ..................................................................

3. Enter the number of months you were provided the QSEHRA in 2023 .................................

4. Divide line 2 by 12.0 .....................................................................

5. If you enrolled in a qualified health plan, enter the monthly premium you would pay for self-only coverage under

the SLCSP offered by the Marketplace where you enrolled in coverage. If you did not enroll in a qualified health

plan, enter the monthly premium that the oldest member of your coverage family who is enrolled in a qualified

health plan would pay for self-only coverage under the SLCSP offered by the Marketplace where that family

member enrolled. See Applicable SLCSP premium tools, later, to learn how to retrieve the applicable

SLCSP premium ....................................................................... 5.

6. Enter the self-only coverage permitted benefit from the written notice provided by your employer. If you were

provided the QSEHRA for less than 12 months in 2023, see Part-year coverage, later, for what amount to enter

on line 6 ............................................................................. 6.

7. Divide line 6 by line 3 ....................................................................

8. Subtract line 7 from line 5 .................................................................

9. Compare lines 4 and 8.

•

If line 4 is less than line 8, the QSEHRA is not considered affordable. Stop here. Complete Worksheet Q.

•

If line 4 is greater than or equal to line 8, the QSEHRA is considered affordable. Skip Worksheet Q. Stop here

and do not file Form 8962 if you were provided a QSEHRA for every month you were covered by a qualified

health plan and no APTC was paid for you or another individual in your tax family. Otherwise, enter

"QSEHRA" in the top margin of Form 8962. If you are completing Form 8962, lines 12 through 23, stop here

and enter -0- on lines 12 through 23, column (e), for each month you were provided the QSEHRA. If you are

completing Form 8962, line 11, and you were provided the QSEHRA for all of 2023, stop here and enter -0-

on line 11, column (e). If you were not provided the QSEHRA for all of 2023, complete lines 10 through 13

below.

10. Enter the smaller of Form 8962, line 11, column (a) or (d) ..........................................

10.

11. Divide line 10 by 12.0 ....................................................................

11.

12. Multiply line 11 by line 3 ..................................................................

12.

13. Subtract line 12 from line 10. Enter the result here and on Form 8962, line 11, column (e) ..................

13.

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Special instructions for Worksheet N if you did not

have the same SLCSP for all months of 2023 or

changed employers during 2023. You must complete a

separate worksheet through line 8 for each part of the year

in which you had a different SLCSP premium for self-only

coverage while provided a QSEHRA, or you were provi-

ded a QSEHRA from different employers with different

self-only permitted benefits. For example, Bob was em-

ployed for all of 2023 by an employer that provides a

QSEHRA to its employees. Bob changed Marketplace

policies in May of 2023 because of a change in residence.

As a result, Bob’s SLCSP premium for self-only coverage

was different for the period January through May than for

the period June through December. To determine the af-

fordability of the QSEHRA provided to Bob, Bob must

complete a separate Worksheet N for the period January

through May and the period June through December.

Once you have completed the separate worksheets

through line 8, read the following.

•

If the Worksheets N show that the QSEHRA is unaf-

fordable for at least 1 month (line 4 is less than line 8

on at least one of the worksheets), skip lines 9 through

13 and complete Worksheet Q.

•

If the Worksheets N show that the QSEHRA is afforda-

ble for all months of 2023 (line 4 is greater than or

equal to line 8 on all the worksheets), follow the in-

structions on line 9 of the worksheet relating to “If

line 4 is greater than or equal to line 8.” Complete lines

10 through 13 if you are instructed to do so.

Part-year coverage—Instruction for line 6. If you were

provided a QSEHRA for less than 12 months in 2023, the

written notice your employer sent to you may have provi-

ded the self-only coverage permitted benefit for only the

months you were provided the QSEHRA or the self-only

coverage permitted benefit for the entire year (if the notice

provided to you does not include a permitted benefit

amount for self-only coverage, you must contact your em-

ployer to get that information). If the notice provided the

permitted benefit amount just for the months you were

provided the QSEHRA, then enter that amount on line 6. If

the notice provided the self-only coverage permitted bene-

fit for the entire year, figure the amount to enter on line 6

as follows.

1. Divide the self-only coverage permitted benefit for the

entire year by 12.0.

2. Multiply the result by the number of months you were

provided the QSEHRA.

Instructions for Worksheet Q, Part III

Column A. If you completed Form 8962, lines 12 through

23, enter the smaller of column (a) or (d) on the lines in

Part III for the months you were provided a QSEHRA. If

you completed Form 8962, line 11, and were instructed to

complete Part III in the second bullet under Before you be-

gin, divide the amount on line 11, column (a), by 12.0.

Then, divide the amount on line 11, column (d), by 12.0.

Enter the smaller of the 2 amounts on each line in column

A for the months you were provided a QSEHRA.

Column B. The amount you enter in column B depends

on whether the QSEHRA is considered affordable cover-

age for the month. For the months the QSEHRA is consid-

ered affordable coverage, enter in column B the amount

you entered in column A. For the months the QSEHRA is

not considered affordable coverage, complete column B

as follows.

•

If you completed Part I, enter the amount from line 3

on the lines for the months you completed column A.

•

If you skipped Part I, enter the monthly permitted ben-

efit amount (the amount from box 12, code FF, of Form

W-2, divided by the number of months you were provi-

ded the QSEHRA) on the lines for the months you

completed column A.

To determine whether the QSEHRA is considered af-

fordable coverage for any month, see Worksheet N.

Self-only permitted benefit for some months and

family permitted benefit for others. Your permitted

benefit is reported in box 12 of Form W-2 using code FF.

However, if you received a self-only permitted benefit for

part of the year and a family permitted benefit for another

part of the year, the amount reported on your Form W-2

reflects that change. For purposes of this worksheet, di-

vide the self-only permitted benefit as described in the

written notice from your employer by 12.0 to determine

your column B monthly permitted benefit for the months in

which you were provided a permitted benefit for self-only

coverage. Divide the family permitted benefit as described

in the written notice from your employer by 12.0 to deter-

mine your column B monthly permitted benefit for the

months in which you were provided a permitted benefit for

family coverage. If you were provided the QSEHRA for

less than 12 months in 2023, see Part-year coverage for

taxpayers with changes in permitted benefits next for what

amount to enter on line 6 of Worksheet N.

Part-year coverage for taxpayers with changes in

permitted benefits. If you received a self-only permitted

benefit for part of the year and a family permitted benefit

for another part of the year and you were provided a

QSEHRA for less than 12 months in 2023, you should

consult the written notice your employer sent to you to de-

termine the amount to enter in column B. The notice your

employer sent to you may have included the permitted

benefit for only the months you were provided the

QSEHRA or the permitted benefit for the entire year. If the

notice provided the permitted benefit for the entire year,

divide the self-only coverage permitted benefit for the en-

tire year by 12.0 and enter that amount in column B for the

months you received a self-only permitted benefit. Then,

divide the family coverage permitted benefit for the entire

year by 12.0 and enter that amount in column B for the

months you received a family permitted benefit. If the no-

tice provided the permitted benefit for only the months you

were provided the QSEHRA, divide that amount by the

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Worksheet Q. Worksheet To Figure Monthly Credit Amount if

You Have a QSEHRA Keep for Your Records

Before you begin:

•

See Worksheet N to determine whether the QSEHRA is considered affordable coverage for any month. If the QSEHRA is considered affordable

coverage for some months but not others, see the instructions for column B below for the amount you enter in column B for the affordable

months.

•

If the monthly permitted benefit was the same for each month you were provided the QSEHRA and the QSEHRA was not considered affordable

for all of those months, go to Part I. If the monthly permitted benefit was not the same for each month you were provided the QSEHRA or the

QSEHRA was considered affordable for some but not all the months it was provided, go to Part III. Skip Parts I and II.

Caution. If you received a self-only permitted benefit for part of the year and a family permitted benefit for another part of the year, you must

complete Part III even though the amount reported on your Form W-2 reflects this change.

Part I: Monthly Permitted Benefit

1. Enter the amount from box 12, code FF, of Form W-2 ......................................

2. Enter the number of months you were provided the QSEHRA in 2023 ..........................

3. Divide line 1 by line 2. Then, do one of the following .......................................

•

If you are completing Form 8962, line 11, go to Part II below.

•

If you are completing Form 8962, lines 12 through 23, go to Part III below. Skip Part II.

Part II: Annual Calculation

4. Enter the smaller of Form 8962, line 11, column (a) or (d) ...................................

5. Divide line 4 by 12.0 ..............................................................

6. Enter the smaller of line 3 or line 5 ...................................................

7. Multiply line 6 by line 2 ............................................................

8. Subtract line 7 from line 4. Enter the result here and on Form 8962, line 11, column (e). Enter “QSEHRA”

in the top margin of Form 8962. Skip Part III below ........................................ 8.

Note. If the result is -0- and the amount you will enter on line 11, column (f), is also -0-, stop here. Do not

file Form 8962.

Part III: Monthly Calculation

Month A. Tentative monthly premium tax credit

(see instructions)

B. Monthly permitted benefit (see

instructions)

C. Subtract col. B from col. A. If less

than zero, enter -0-.

9. January

10. February

11. March

12. April

13. May

14. June

15. July

16. August

17. September

18. October

19. November

20. December

21. If you are completing Form 8962, lines 12 through 23, stop here and enter the amounts from column C in

column (e) for the months you completed column A. Enter “QSEHRA” in the top margin of Form 8962.

Note. If all entries in columns (e) and (f) are -0- or blank, do not file Form 8962.

22. If you are completing Form 8962, line 11, add the amounts in column C above and enter the result here. If

line 22 is -0- and no APTC was paid for you or another individual in your tax family, stop here and do not

file Form 8962. Otherwise, do one of the following ........................................ 22.

•

If you were provided the QSEHRA for all of 2023, stop here and also enter the result on Form 8962,

line 11, column (e). Enter “QSEHRA” in the top margin of Form 8962.

•

If you were not provided the QSEHRA for all of 2023, complete lines 23 through 27 below to figure

the amount to enter on Form 8962, line 11, column (e).

23. Enter the smaller of Form 8962, line 11, column (a) or (d) ...................................

23.

24. Divide line 23 by 12.0 .............................................................

24.

25. Multiply line 24 by the number of months you were provided the QSEHRA in 2023 ................

25.

26. Subtract line 25 from line 23 ........................................................

26.

27. Add lines 22 and 26. Enter the result here and on Form 8962, line 11, column (e). Enter “QSEHRA” in the

top margin of Form 8962 .......................................................... 27.

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number of months you were provided that permitted bene-

fit under the QSEHRA and enter the amount in column B

for the appropriate months.

Grandfathered Health Plan

A grandfathered health plan means any group health plan,

group health insurance coverage, or individual health in-

surance coverage to which section 1251 of the ACA ap-

plies (in general, certain group health plans and health in-

surance coverage existing as of March 23, 2010, for as

long as the coverage maintains that status under the ap-

plicable rules). Health plans must disclose if they are

grandfathered. For more information about grandfathered

health plans, see HealthCare.gov/Health-Care-Law-

Protections/Grandfathered-Plans/.

Other Coverage Designated by the

Department of Health and Human

Services (HHS)

HHS has designated the following health benefit plans or

arrangements as MEC.

1. Employer coverage provided to business owners who

are not employees.

2. Coverage under a group health plan provided through

insurance regulated by a foreign government if:

a. A covered individual is physically absent from the

United States for at least 1 day during the month,

b. A covered individual is physically present in the

United States for a full month and the coverage

provides health benefits within the United States

while the individual is on expatriate status.

3. Coverage of pregnancy-related services that consists

of full Medicaid benefits.

4. Other specific programs listed at CMS.gov/CCIIO/

Programs-and-Initiatives/Health-Insurance-Market-

Reforms/Minimum-Essential-Coverage.html (click on

the link for “Approved Plans”). These programs in-

clude certain:

a. Self-insured university student health plans; and

b. Coverage resembling coverage under a state’s

CHIP program that generally requires the payment

of premiums with little or no government subsidy,

often called CHIP buy-in programs.

In general, if you were eligible for coverage that HHS has

designated as MEC, you are not eligible to claim the PTC

for coverage through the Marketplace. However, you are

considered as eligible for MEC under a self-insured uni-

versity student health plan or a CHIP buy-in program that

has been designated as MEC only if you are enrolled in

the coverage.

Individuals Not Lawfully

Present in the United States

Enrolled in a Qualified Health

Plan

The PTC is not allowed for the coverage of an individual

who is not lawfully present in the United States. All APTC

paid for an individual not lawfully present who enrolls in a

qualified health plan must be figured. If all family members

enrolled in a qualified health plan are not lawfully present,

see the discussion immediately below. If you or a member

of your family is not lawfully present and was enrolled in a

qualified health plan with family members who are lawfully

present for 1 or more months of the year, you must use the

instructions under Lawfully Present and Not Lawfully

Present Family Members Enrolled, later, to find out how

much APTC, if any, was allowable.

For more information about who is treated as law-

fully present for this purpose, go to

HealthCare.gov/Immigrants/Immigration-Status/.

All Enrolled Family Members Not

Lawfully Present

If all family members enrolled in a qualified health plan are

not lawfully present, no PTC is allowed. Complete lines on

Form 8962 as explained below. Leave all other lines

blank.

Lines 1, 2a, 3, 4, and 5. Enter -0-.

Line 9. Complete line 9 as provided in the Form 8962 in-

structions to determine whether you must complete Part

IV for an allocation of policy amounts. Complete Part IV if

instructed to do so by Table 3 in the Form 8962 instruc-

tions. Do not complete Part V.

Line 11, column (f) (or lines 12 through 23, column

(f), if you complete Part IV). If you checked the “No”

box on line 9, enter the total of your Form(s) 1095-A, Part

III, line 33C, on line 11, column (f). If you checked the

“Yes” box on line 9, complete lines 12 through 23, column

(f), as provided in the Form 8962 instructions.

Line 24. Enter -0-.

Lines 25, 27, and 29. Enter the amount from line 11, col-

umn (f), (or the total of lines 12 through 23, column (f)) on

each line. Then, follow the instructions for line 29.

TIP

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Lawfully Present and Not Lawfully

Present Family Members Enrolled

Before you read the following discussion, first fa-

miliarize yourself with the definitions of tax family

and coverage family discussed under Terms You

May Need To Know, earlier.

If you or a member of your family is not lawfully present

and was enrolled in a qualified health plan with family

members who are lawfully present for 1 or more months of

the year, you may take the PTC only for the coverage of

the lawfully present family members. You must determine

how much APTC was paid for the coverage of a not law-

fully present family member. Complete Form 8962 using

the following steps.

Step 1. Complete Part I according to the instructions. If

you are not eligible for the PTC, skip the rest of these

steps, complete Form 8962 through line 27, and then see

How To Determine the Excess APTC That Must Be Re-

paid, later.

Step 2. Determine your monthly enrollment premiums

and applicable SLCSP premium using the instructions un-

der How To Determine Your Monthly Enrollment Premiums

and SLCSP Premium, later.

Step 3. Complete line 9, including Parts IV and V if in-

structed to do so.

Step 4. If Situation 1 (discussed later) applies to you, do

one of the following.

•

If the enrolled lawfully present family members are en-

rolled for all 12 months of 2023, check the “Yes” box

on line 10 and complete line 11, and lines 24 through

29, as appropriate.

•

If the enrolled lawfully present family members are en-

rolled for less than 12 months, check the “No” box on

line 10, skip line 11, and complete lines 12 through 29,

as appropriate.

If Situation 2 (discussed later) applies to you, check the

“No” box on line 10, skip line 11, and complete lines 12

through 25. Then, do one of the following.

•

If line 24 is less than line 25, you have excess APTC.

See How To Determine the Excess APTC That Must

Be Repaid, later.

•

If line 24 is equal to or greater than line 25, complete

line 26 as instructed. (Do not follow the instructions

under How To Determine the Excess APTC, later.)

How To Determine Your Monthly Enrollment

Premiums and Applicable SLCSP Premium

See Situation 1 or Situation 2 next for how to determine

your monthly enrollment premium and applicable SLCSP

premium.

Situation 1—Not lawfully present family members en-

rolled and no other changes in enrollment or cover-

TIP

age family. Situation 1 applies if you have family mem-

bers who are not lawfully present that are enrolled for all or

a part of the year, there are no changes in your coverage

family during the year (counting only lawfully present fam-

ily members), and there are no enrollment changes involv-

ing your lawfully present family members enrolled in the

coverage during the year. If Situation 1 applies, you should

enter on Form 8962 for every month of the year the enroll-

ment premiums and applicable SLCSP premium the Mar-

ketplace reports on Form 1095-A for the months when

only lawfully present individuals were enrolled in the cov-

erage. If a not lawfully present family member was enrol-

led for the entire year, see No reference month, later.

Example 1. Andrew enrolls himself and his three de-

pendents, Terri, Phil, and Anne in a qualified health plan.

Anne is not lawfully present in the United States. The

monthly enrollment premiums for the plan are $1,000. No

one in Andrew’s family is eligible for MEC (other than Mar-

ketplace coverage) and the applicable SLCSP premium

that would apply to all four members of Andrew’s family is

$1,200. There are no changes involving the lawfully

present members of the coverage family during the year.

Anne is disenrolled from coverage as of April 1. The

monthly enrollment premiums for Andrew and his other

two dependents are $800 and the applicable SLCSP pre-

mium that applies to Andrew’s coverage family of three is

$900. The Marketplace reports the following amounts on

Form 1095-A, Part III.

Months Column A Column B

January, February, March ....... $1,000 $1,200

April through December ........ $800 $900

When completing Form 8962, Andrew enters $9,600

($800 x 12) as the enrollment premiums on line 11, col-

umn (a), and $10,800 ($900 x 12) as the premium for the

applicable SLCSP on line 11, column (b).

Situation 2—Changes in enrollment or coverage fam-

ily involving a lawfully present family member. Situa-

tion 2 applies if you have family members who are not law-

fully present that are enrolled for all or part of the year, and

there are either changes in your coverage family during

the year (counting only lawfully present family members)

or enrollment changes involving your lawfully present fam-

ily members enrolled in the coverage during the year. If

Situation 2 applies, use these rules to determine the en-

rollment premiums and the applicable SLCSP premium for

the months any not lawfully present family members are

enrolled. First, use Worksheet A to determine if you have a

reference month for enrollment premiums or for the appli-

cable SLCSP premium. You may have a reference month

for enrollment premiums (discussed next) or a reference

month for the applicable SLCSP premium (discussed

later), or for both.

Reference month for enrollment premiums. A refer-

ence month for enrollment premiums is a month in which

the not lawfully present family member is not enrolled in

coverage and there are no other changes in the members

of your family who are enrolled in the coverage. In other

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words, your enrolled family members are the same during

the reference month as for a month the not lawfully

present family member was enrolled, except that the not

lawfully present family member is not enrolled. Enter on

Form 8962, Part II, column (a), the enrollment premiums

for the reference month as the enrollment premiums for

the months the not lawfully present family member was

enrolled.

Reference month for SLCSP premium. A reference

month for the applicable SLCSP premium is a month in

which the not lawfully present family member is not enrol-

led in coverage and there are no other changes in your

coverage family. In other words, your coverage family is

the same during the reference month as for a month the

not lawfully present family member was enrolled, except

the not lawfully present family member is not included in

your coverage family. Enter on Form 8962, Part II, column

(b), the applicable SLCSP premium for the reference

month as the applicable SLCSP premium for the months

the not lawfully present family member was enrolled.

No reference month. If you do not have a reference

month for enrollment premiums, you may have to contact

your insurance company to find out what the amount of

the enrollment premiums would have been if the policy

had covered only lawfully present family members. If you

do not have a reference month for the applicable SLCSP

premium, you must look up the SLCSP premium that ap-

plies to your coverage family (without any not lawfully

present family members). See Determining the Premium

for the Applicable Second Lowest Cost Silver Plan

(SLCSP), later.

You may use Worksheet A to determine whether

you have any reference months.

Example 2. The facts are the same as in Example 1,

earlier, except that Andrew becomes eligible for em-

ployer-sponsored coverage on September 1, notifies the

Marketplace, but remains enrolled in the qualified health

plan (although he cannot take the PTC for his coverage for

the months after August). The applicable SLCSP premium

that applies to Terri and Phil is only $400. The Market-

place reports the following amounts on Form 1095-A, Part

III.

Months Column A Column B

January, February, March ....... $1,000 $1,200

April through August .......... $800 $900

September through December ... $800 $400

Andrew must complete lines 12 through 23 of Form

8962. April through August are reference months for both

TIP

enrollment premiums and the applicable SLCSP premium

for January through March (the months Anne was enrolled

in coverage) because Andrew’s coverage family and en-

rolled family members for April through August (Andrew,

Phil, and Terri) are the same as for January through March

except for Anne who is not lawfully present. (September

through December are also reference months for

enrollment premiums.) The enrollment premiums and

SLCSP premium for April through August are the same

amounts they would have been for January through March

without Anne. Therefore, for the months January through

March, Andrew enters on Form 8962, lines 12 through 23,

$800 (the enrollment premiums for April through August)

in column (a) and $900 (the SLCSP premium that applies

to the coverage family for April through August) in column

(b).

Example 3. The facts are the same as in Example 1,

earlier, except that Andrew becomes eligible for em-

ployer-sponsored coverage on April 1, notifies the Market-

place, but remains enrolled in the qualified health plan.

The Marketplace reports the following amounts on Form

1095-A, Part III.

Months Column A Column B

January, February, March ....... $1,000 $1,200

April through December ........ $800 $400

Andrew does not have a reference month for the appli-

cable SLCSP premium for the months Anne was enrolled

in the qualified health plan because there is another

change in his coverage family for the months April through

December (Andrew is not in the coverage family because

he is eligible for employer-sponsored coverage). Thus,

there are no months when Andrew’s coverage family is the

same (except for Anne) before and after Anne is disenrol-

led from coverage. Andrew must look up the SLCSP pre-

mium that applies to his coverage family without Anne. An-

drew determines that the correct applicable SLCSP

premium to enter on Form 8962 for the months January

through March for a coverage family consisting of Andrew,

Terri, and Phil is $900.

April through December are reference months for An-

drew for enrollment premiums because the family mem-

bers who are enrolled for those months are the same fam-

ily members who were enrolled in January through March,

except for Anne.

Therefore, for the months January through March, An-

drew enters on Form 8962, lines 12 through 23, $800 (the

enrollment premiums for April through December) in col-

umn (a) and $900 (the SLCSP premium that would apply

to the coverage family of Andrew, Terri, and Phil) in col-

umn (b).

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How To Determine the Excess APTC That

Must Be Repaid

The excess APTC (see the instructions for Form 8962,

line 28) applies only to excess APTC for coverage of law-

fully present individuals. Excess APTC that relates to the

coverage of individuals who are not lawfully present must

be figured without limitation. Use Worksheet B to deter-

mine the amount of excess APTC if all of the following ap-

ply.

•

You or a member of your family is not lawfully present

and is enrolled in a qualified health plan with family

members who are lawfully present for 1 or more

months of the year.

•

You have excess APTC on line 27 of Form 8962.

•

Your excess APTC on line 27 of Form 8962 is more

than your amount from Table 5 in the Form 8962 in-

structions.

If line 27 is not more than your amount from Table 5 in

the Form 8962 instructions, do not complete Worksheet B.

Leave line 28 of Form 8962 blank, enter the amount from

line 27 on line 29, and follow the instructions for line 29. If

Worksheet A. Do You Have Any Reference Months? Keep for Your Records

Use this worksheet to determine whether you have any reference months.

Months in 2023 ............................ Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

1. Check a box for each month in which any

family members not lawfully present were

enrolled in coverage ....................

2. Check a box for each month in which:

•

Only lawfully present family members

were enrolled in coverage; and

•

There were no other changes in

members of your tax family* who are

enrolled in coverage, as compared to a

month for which you checked a box on

line 1 ..............................

The months for which you checked boxes

on line 2 are your reference months for

enrollment premiums. Use the enrollment

premium reported on Form 1095-A, Part III,

column A, for the reference month as your

enrollment premium on Form 8962 for the

month(s) you checked on line 1.

Note. If you did not check any boxes on this

line, see No reference month, earlier.

3. Check a box for each month in which:

•

Only lawfully present family members

were enrolled in coverage; and

•

There were no other changes in your

coverage family,* as compared to a

month for which you checked a box on

line 1 ..............................

The months for which you checked boxes

on line 3 are your reference months for the

applicable SLCSP premium. Use the

applicable SLCSP premium reported on

Form 1095-A, Part III, column B, for the

reference month as your applicable SLCSP

premium on Form 8962 for the month(s) you

checked on line 1.

Note. If you did not check any boxes on this

line, see No reference month, earlier.

* See Terms You May Need To Know, earlier, for the definitions of tax family and coverage family.

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you must complete Worksheet B, see the illustrated exam-

ple.

Illustrated Example of Determining the

Excess APTC That Must Be Repaid

Andrew enrolls himself and his three dependents, Terri,

Phil, and Anne in a qualified health plan. Anne is not law-

fully present in the United States and is disenrolled from

the coverage as of April 1. Andrew becomes eligible for

employer-sponsored coverage on September 1, notifies

the Marketplace, but remains enrolled in the qualified

health plan. The Marketplace reports the following

amounts on Form 1095-A, Part III.

Months Column A Column B Column C

January, February,

March ............ $1,000 $1,200 $953

April through

August ............ $800 $900 $653

September through

December ......... $800 $400 $153

Step 1. Andrew completes Part I of Form 8962 (not illus-

trated). His household income for the year on his Form

8962, line 3, is $76,313, which is 275% of the federal pov-

erty line. The annual contribution amount Andrew enters

on line 8a is $3,816 and the monthly contribution amount

he enters on line 8b is $318.

Step 2. Andrew determines his monthly enrollment pre-

miums and applicable SLCSP premium using the instruc-

tions under How To Determine Your Monthly Premium and

Applicable SLCSP Premium, earlier. Situation 2 in that dis-

cussion applies to Andrew because he has a lawfully

present family member enrolled in coverage and there are

changes in his coverage family in 2023, counting only law-

fully present family members: beginning in September,

only Phil and Terri are in the coverage family. Andrew is no

longer in the coverage family because he becomes eligi-

ble for employer-sponsored coverage.

Andrew completes Worksheet A as explained below to

determine his reference months for the enrollment premi-

ums and the applicable SLCSP premium for the months

Anne was enrolled. (Andrew’s Worksheet A is shown

later.)

Line 1. He checks the boxes for January, February,

and March because those are the months in which Anne

is enrolled in Marketplace coverage.

Line 2. He checks the boxes for April through Decem-

ber. Those months are reference months for enrollment

premiums ($800) for January through March because his

tax family for these months (Andrew, Phil, and Terri) is the

same as for January through March except for Anne.

Line 3. He checks the boxes for April through August.

These months are reference months for the applicable

SLCSP premium ($900) for January through March

because Andrew’s coverage family for these months (An-

drew, Phil, and Terri) is the same as for January through

March except for Anne. September through December are

not reference months for the applicable SLCSP premium

(and Andrew doesn’t check these boxes) because, as ex-

plained above, there was another change in his coverage

family beginning in September.

Step 3. Andrew checks the “No” box on line 9 because

he is neither allocating policy amounts with another tax-

payer nor using the alternative calculation for year of mar-

riage.

Step 4. Because Situation 2 (discussed earlier) applies to

Andrew, he checks the “No” box on line 10, skips line 11,

and completes lines 12 through 25. On lines 12 through

14, column (a), he enters $800 as determined on Work-

sheet A, line 2. On lines 12 through 14, column (b), he en-

ters $900 as determined on Worksheet A, line 3.

Andrew’s PTC on line 24 ($4,656) is less than his APTC

on line 25 ($6,736), and his excess APTC on line 27

($2,080 is greater than his Table 5 repayment limitation

amount ($1,800) in the Form 8962 instructions. According

to the instructions under How To Determine the Excess

APTC That Must Be Repaid, earlier, Andrew must com-

plete Worksheet B to figure the amount of excess APTC.

Andrew completes Worksheet B as follows.

Line 1. Andrew enters $953. This is the monthly APTC

shown on Form 1095-A, Part III, column C, for January,

February, and March (the months that Anne was enrolled

in coverage).

Line 2. Andrew enters $582. This is the amount from

Form 8962, Part II, column (e), for January through March

and represents the applicable monthly SLCSP premium

for April through August (reference months for the applica-

ble SLCSP premium) for Andrew, Terri, and Phil of $900

minus the monthly contribution amount of $318 from Form

8962, line 8b.

Line 4. Andrew enters $1,000. This is the monthly pre-

mium for January through March shown on Form 1095-A,

Part III, column A.

Line 5. Andrew enters $1,200. This is the applicable

SLCSP premium shown on Form 1095-A, Part III, column

Line 6. Andrew enters $318. This is the monthly contri-

bution amount from Form 8962, line 8b.

Lines 7 through 14. Andrew completes these lines as

instructed on Worksheet B.

Line 15. Line 14 is more than line 13. Accordingly, An-

drew enters the amount from line 13 ($1,800) on Form

8962, lines 28 and 29.

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Worksheet B. Excess APTC That Must Be Repaid Keep for Your Records

Complete columns only for the months a not lawfully present family member was enrolled in coverage. (If you comple-

ted Worksheet A, these are the months for which you checked a box on line 1 of the worksheet.)

Months in 2023 ...... Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

1. Enter APTC from

Form 1095-A, Part

III, column

C ...........

2. Enter the monthly

credit amount from

Form 8962, Part II,

column (e) .....

3. Subtract line 2

from line 1. If zero

or less, leave this

line blank and skip

lines 4 through 10

for the

month ........

4. Enter the monthly

premium amount

from Form 1095-A,

Part III, column A . .

5. Enter the SLCSP

premium from

Form 1095-A, Part

III, column B . . . . . .

6. Enter the monthly

contribution

amount from Form

8962, line 8b . . . . .

7. Subtract line 6

from line 5 .....

8. Enter the smaller

of line 4 or

line 7 .........

9. Subtract line 8

from line 1. If zero

or less,

enter -0- ......

10. Subtract line 9

from line 3 .....

11. Add the amounts on line 10. If all of your line 3 results were zero or less, stop here. None of your excess APTC was from

individuals who were not lawfully present. Enter the repayment limitation amount from Table 5 in the Form 8962 instructions on

Form 8962, line 28, and continue to line 29 ............................................................. 11.

12. Enter the repayment limitation amount from Table 5 in the Form 8962 instructions ................................. 12.

13. Add lines 11 and 12 .............................................................................. 13.

14. Enter the amount from Form 8962, line 27 .............................................................. 14.

15. Compare lines 13 and 14.

•

If line 14 is more than line 13, enter the amount from line 13 on Form 8962, lines 28 and 29, and follow the instructions for

line 29.

•

If line 14 is less than or equal to line 13, leave Form 8962, line 28, blank and enter the amount from line 27 on line 29.

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Check a box for each month in which:

*See Terms You May Need To Know, earlier, for the denitions of tax famliy and coverage family.

Check a box for each month in which any

family members not lawfully present were

enrolled in coverage

Note. If you did not check any boxes on this

line, see No reference month, earlier.

Note. If you did not check any boxes on this

line, see No reference month, earlier.

The months for which you checked boxes

on line 2 are your reference months for

enrollment premiums. Use the enrollment

premium reported on Form 1095-A, Part III,

column A, for the reference month as your

enrollment premium on Form 8962 for the

month(s) you checked on line 1.

•

Only lawfully present family members

were enrolled in coverage; and

•

There were no other changes in

members of your tax family* who are

enrolled in coverage, as compared to a

month for which you checked a box on

line 1

Check a box for each month in which:

The months for which you checked boxes

on line 3 are your reference months for the

applicable SLCSP premium. Use the

applicable SLCSP premium reported on

Form 1095-A, Part III, column B, for the

reference month as your applicable SLCSP

premium on Form 8962 for the month(s) you

checked on line 1.

•

Only lawfully present family members

were enrolled in coverage; and

•

There were no other changes in your

coverage family,* as compared to a

month for which you checked a box on

line 1

Andrew’s Worksheet A. Do You Have Any Reference Months?

Use this worksheet to determine whether you have any reference months.

✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓✓✓

✓ ✓ ✓ ✓

Months in 2023

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Andrew's Worksheet B. Excess APTC That Must Be Repaid

Complete columns only for the months a not lawfully present family member was enrolled in coverage. (If you comple-

ted Worksheet A, these are the months for which you checked a box on line 1 of the worksheet.)

Months in 2023 ...... Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

1. Enter APTC from

Form 1095-A, Part

III, column

C . . . . . . $953 $953 $953

2. Enter the monthly

credit amount from

Form 8962, Part II,

column

(e) ........... 582 582 582

3. Subtract line 2

from line 1. If zero

or less, leave this

line blank and skip

lines 4 through 10

for the

month ........ 371 371 371

4. Enter the monthly

premium amount

from Form 1095-A,

Part III, column A . . 1,000 1,000 1,000

5. Enter the SLCSP

premium from

Form 1095-A, Part

III, column

B . . . . . . 1,200 1,200 1,200

6. Enter the monthly

contribution

amount from Form

8962, line 8b . . . . . 318 318 318

7. Subtract line 6

from line 5 ..... 882 882 882

8. Enter the smaller

of line 4 or

line 7 . . . . . 882 882 882

9. Subtract line 8

from line 1. If zero

or less,

enter -0- . . . . . 71 71 71

10. Subtract line 9

from line 3 ..... 300 300 300

11. Add the amounts on line 10. If all of your line 3 results were zero or less, stop here. None of your excess APTC was from

individuals who were not lawfully present. Enter the repayment limitation amount from Table 5 in the Form 8962 instructions on

Form 8962, line 28, and continue to line 29 ............................................................. 11. 900

12. Enter the repayment limitation amount from Table 5 in the Form 8962 instructions ................................. 12. 1,800

13. Add lines 11 and 12 .............................................................................. 13. 2,700

14. Enter the amount from Form 8962, line 27 .............................................................. 14. 2,080

15. Compare lines 13 and 14.

•

If line 14 is more than line 13, enter the amount from line 13 on Form 8962, lines 28 and 29, and follow the instructions for

line 29.

•

If line 14 is less than or equal to line 13, leave Form 8962, line 28, blank and enter the amount from line 27 on line 29.

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Determining the Premium for

the Applicable Second Lowest

Cost Silver Plan (SLCSP)

If you or a member of your family enrolls in a qualified

health plan and APTC is paid for the coverage, the Mar-

ketplace will generally identify the applicable SLCSP pre-

mium and report it on Form 1095-A. The Marketplace de-

termines the applicable SLCSP premium based on your

address and the members of your coverage family. Provid-

ing correct information on your application for financial as-

sistance and notifying the Marketplace if you move or the

members of your coverage family change are necessary

for the Marketplace to report a correct applicable SLCSP

premium. If the Marketplace does not have accurate and

updated information, the applicable SLCSP premium the

Marketplace reports on Form 1095-A may not be accurate

for all months and you will need to determine the correct

applicable SLCSP premium for those months. See Appli-

cable SLCSP premium tools below.

If you did not request financial assistance (APTC) and

the Marketplace has an applicable SLCSP premium tool

(discussed in the next paragraph), the Marketplace will not

report an applicable SLCSP premium (Part III, column B,

will report -0- or be blank). If you did not request financial

assistance (APTC) and the Marketplace does not have an

applicable SLCSP premium tool, it may report an SLCSP

premium that applies to everyone enrolled in your qualified

health plan because it may not be able to identify the

members of your coverage family from the information on

your application. If you take the PTC on your tax return,

you will need to determine the SLCSP premium that ap-

plies to your coverage family for each month of coverage.

Applicable SLCSP premium tools. Only the Marketpla-

ces are able to provide applicable SLCSP premiums. The

federally facilitated Marketplace and most state Market-

places have provided applicable SLCSP premium tools

that, as you prepare your tax return, you may use to look

up the SLCSP premium that applies to your coverage fam-

ily for each month. If you enrolled through the federally fa-

cilitated Marketplace, you will find the tool at

HealthCare.gov/Tax-Tool/.

If you enrolled through a state-based Marketplace, you

may find information about whether your state has an ap-

plicable SLCSP premium tool on the state-based Market-

place’s website. If the website does not have an applica-

ble SLCSP premium tool, you will need to contact the

state-based Marketplace directly for the correct SLCSP

premium.

Allocating Policy Amounts for

Individuals With No One in

Their Tax Family

If an individual you enrolled in coverage is not included in

any tax family, you must reconcile the APTC paid for the

individual’s coverage, even if you are claimed as a de-

pendent by another taxpayer. If you are enrolled in the

same policy as the individual not included in any tax fam-

ily, you have to allocate policy amounts even though the

conditions in the Form 8962 instructions for line 9 are not

met. Use the example below to complete Form 8962 if

your family size is zero but you have to allocate policy

amounts.

Example. Mark enrolls himself and his child, Donna, in

a qualified health plan with coverage effective for all of

2023. The Form 1095-A he received from the Marketplace

shows that $6,000 of APTC was paid for their coverage

($500 is entered in Part III, column C, for each of lines 21

through 32). Mark files an income tax return for 2023 on

Form 1040 and does not include anyone in his tax family.

Mark’s parents, Steve and Sherry, include Mark in their tax

family. No one includes Donna in their tax family. Because

Mark enrolled Donna in coverage and no one includes

Donna in their tax family, Mark must reconcile the APTC

paid for Donna’s coverage. Steve and Sherry must recon-

cile the APTC paid for Mark’s coverage. Because Steve

and Sherry must reconcile the APTC paid for Mark’s cov-

erage and Mark must reconcile the APTC paid for Donna’s

coverage, Mark must complete Part IV of Form 8962 to al-

locate policy amounts with Steve and Sherry. Mark,

Sherry, and Steve do not agree on an allocation percent-

age. Mark completes Form 8962 as follows.

Lines 1, 2a, 3, 4, and 5. Mark enters -0-.

Line 9. Mark reads Allocating policy amounts under

Line 9 in the Form 8962 instructions. Although the first

condition in that discussion is not met, the allocation rules

still apply because the APTC must be reported on two

separate returns (Mark's for Donna; Steve and Sherry's for

Mark). He checks “Yes” on line 9. Then, he reads Table 3

in the instructions. According to Step 3 in Table 3, he must

allocate in Part IV using the rules under Allocation Situa-

tion 4. Other situations where a policy is shared between

two tax families in the Form 8962 instructions.

Line 30 (Part IV). Mark enters the Marketplace-as-

signed policy number in column (a), Steve’s SSN in col-

umn (b), “01” in column (c), and “12” in column (d). He

leaves columns (e) and (f) blank because he is not an ap-

plicable taxpayer. He enters “0.50” in column (g). This is

the allocation percentage based on the rules under Allo-

cation Situation 4. Other situations where a policy is

shared between two tax families in the Form 8962 instruc-

tions.

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Lines 12 through 23, column (f). Mark enters $250

on each line (0.50 x the $500 APTC shown on his Form

1095-A).

Lines 25, 27, and 29. Mark enters $3,000 APTC,

which is the total of lines 12 through 23, column (f), on

these lines and on his Schedule 2 (Form 1040), line 2.

Allocation of Policy Amounts

Among Three or More

Taxpayers

This section covers allocations of policy amounts (enroll-

ment premiums, applicable SLCSP premiums, and APTC)

among three or more taxpayers.

Before you read this section, first read Part IV—Alloca-

tion of Policy Amounts in the Form 8962 instructions.

Then, use the following instructions to complete Part IV of

Form 8962 if one qualified health plan covers individuals

from three or more tax families in the same month. Specifi-

cally, these instructions apply to:

•

Taxpayers who must allocate policy amounts because

of a divorce or legal separation in 2023 and must also

allocate policy amounts with another taxpayer (for ex-

ample, a grandparent who includes in their tax family a

child enrolled with the former spouses);

•

Taxpayers who must allocate policy amounts because

they are legally married but are not filing a joint return

(for example, filing their returns as married filing sepa-

rately), and must also allocate policy amounts with an-

other taxpayer (for example, a grandparent who in-

cludes in their tax family a child enrolled with the

spouses); and

•

Other taxpayers who are including an individual in

their tax family who is enrolled in a qualified health

plan together with members of two or more other tax

families.

No APTC. If you or a member of your tax family is en-

rolled in a qualified health plan with members of two or

more other tax families and no APTC is paid for coverage

under the plan, use the instructions for Form 8962 under

Allocation Situation 3. No APTC to allocate the enrollment

premiums from the qualified health plan among the tax

families. You allocate the enrollment premiums in propor-

tion to the SLCSP premium that applies to each taxpayer

who has a coverage family member enrolled in the plan.

For purposes of this enrollment premium allocation, only

coverage family members enrolled in the plan are consid-

ered in determining the SLCSP premium that applies to

each taxpayer. You and the other taxpayers must com-

plete column (e) on the appropriate line in Part IV to allo-

cate the enrollment premiums to each family. Leave col-

umns (f) and (g) blank. See Missing or incorrect SLCSP

premium on Form 1095-A under Line 10 in the Form 8962

instructions to determine your applicable SLCSP premium

to use for the allocation.

Allocation Among Two Taxpayers

Who Divorced or Legally Separated in

2023 and One or More Other

Taxpayers

Use this section to allocate policy amounts from a quali-

fied health plan if you meet either of the following condi-

tions and no other allocations for the policy are necessary.

•

You are allocating enrollment premiums, applicable

SLCSP premiums, and APTC with a former spouse as

a result of your divorce or legal separation in 2023 and

are also allocating amounts with another taxpayer who

is including an individual in their tax family who, when

you were married to the former spouse, was enrolled

in a qualified health plan with members of your and

your former spouse’s tax families.

•

You are the taxpayer who is including in your tax family

an individual enrolled in the plan with tax family mem-

bers of taxpayers who must also allocate policy

amounts as a result of divorce or separation in 2023.

Example. Kara and David and their two children, Mer-

edith and Sam, enroll in a qualified health plan for 2023.

Kara and David were married at the beginning of 2023

and divorce in 2023. Meredith and Sam move in with their

grandmother, Lydia, in May of 2023. Lydia claims Meredith

and Sam as dependents on her 2023 income tax return.

Kara, David, and Lydia use this section to allocate policy

amounts to compute their respective PTC and reconcile

the PTC with the APTC paid.

Kara and David use the allocation method under Rules

for the Taxpayers Who Divorced or Legally Separated in

2023 and Are Also Allocating With Another Taxpayer next.

Lydia uses the allocation method under Rules for the

Taxpayer(s) Allocating With Taxpayers Who Divorced or

Legally Separated in 2023, later.

Rules for the Taxpayers Who Divorced or

Legally Separated in 2023 and Are Also

Allocating With Another Taxpayer

Use this allocation method if you divorced or legally sepa-

rated during the year and you must allocate policy

amounts (enrollment premiums, applicable SLCSP premi-

ums, and APTC) with your former spouse as well as with

another taxpayer who is including in their tax family an in-

dividual enrolled in a qualified health plan with members

of your and your former spouse’s tax families.

Step 1. Determine an allocation percentage with your for-

mer spouse. You use this percentage to allocate the total

enrollment premiums, the applicable SLCSP premiums,

and APTC for coverage under the plan during the months

you were married. You will find these amounts on your

Form(s) 1095-A, Part III, columns A, B, and C, respec-

tively. You and your former spouse can allocate these

amounts using any percentage you agree on from -0- to

100, but you must allocate all amounts using the same

percentage. If you do not agree on a percentage, you and

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your former spouse must allocate 50% of each of these

amounts to each of you.

Step 2. Separately from the first allocation, determine an

allocation percentage with the taxpayer(s) who included in

their tax family the individual(s) enrolled in the plan with a

member of your tax family or a member of your former

spouse’s tax family. You may agree on any allocation per-

centage from -0- to 100. You may use the percentage you

agreed on for every month that this allocation rule applies,

or you may agree on different percentages for different

months. However, you must use the same allocation per-

centage for all policy amounts (enrollment premiums, ap-

plicable SLCSP premiums, and APTC) in a month. If you

cannot agree on an allocation percentage, the allocation

percentage is equal to the number of individuals the other

taxpayer includes in their tax family for the tax year who

were enrolled in the plan for which you are allocating pol-

icy amounts, divided by the total number of individuals en-

rolled in the qualified health plan. The allocation percent-

age is the percentage that applies to the amounts the

other taxpayer must use to compute the PTC and recon-

cile it with APTC. You and your former spouse must com-

pute the PTC and reconcile APTC using the remaining

amounts.

Step 3. Complete Worksheet C below.

Worksheet C. Allocations for the Divorced or

Legally Separated Taxpayers

Enter as a decimal your percentage from

Step 1 above ........................ 1.

Enter 1.0 ...........................

1.0

Enter as a decimal the total of the

percentage(s) from Step 2 above allocated

to the other taxpayer(s).

Note. See Example 2, later, for details on

adding the percentages for multiple

taxpayers .......................... 3.

Subtract line 3 from line 2 .............

Multiply line 1 by line 4. Enter the result as

a decimal. This is your allocation

percentage. Go to Step 4 below ........ 5.

Step 4. If you use the same percentage in Step 2 above

for every month to which this allocation method applies,

use only one of lines 30 through 33 in Part IV to report the

allocation. If you use different percentages for different

months under Step 2, use a separate line in Part IV for

each allocation percentage. Complete the line as ex-

plained below.

Column (a). Enter the Marketplace-assigned policy

number from Form 1095-A, line 2. If the policy number on

the Form 1095-A is more than 15 characters, enter only

the last 15 characters.

Column (b). Enter the SSN of your former spouse.

Column (c). Enter the first month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “01” in column

(c).

Column (d). Enter the last month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “06” in column

(d).

Column (e). Enter the decimal from Worksheet C,

line 5.

Column (f). Enter the decimal from Worksheet C,

line 5.

Column (g). Enter the decimal from Worksheet C,

line 5.

Rules for the Taxpayer(s) Allocating With

Taxpayers Who Divorced or Legally

Separated in 2023

Use this allocation method if you are including in your tax

family one or more individuals who were enrolled in a

qualified health plan with members of the tax families of

other taxpayers who must also allocate policy amounts as

a result of divorce or legal separation in 2023.

Step 1. Determine an allocation percentage with one of

the former spouses. You may agree on any allocation per-

centage from -0- to 100. You may use the percentage you

agreed on for every month during which this allocation rule

applies, or you may agree on different percentages for dif-

ferent months. However, you must use the same allocation

percentage for all policy amounts (enrollment premiums,

applicable SLCSP premiums, and APTC) in a month. If

you cannot agree on an allocation percentage, the alloca-

tion percentage is equal to the number of individuals you

include in your tax family for the tax year who were enrol-

led in the qualified health plan for which you are allocating

policy amounts, divided by the total number of individuals

enrolled in the plan. The allocation percentage is the per-

centage that applies to the amounts you must use to com-

pute the PTC and reconcile it with APTC. The former

spouse must compute the PTC and reconcile APTC using

the remaining amounts.

Step 2. Allocate the policy amounts with the second for-

mer spouse using the same rules as Step 1 above. Enter

the percentage on line 4 of Worksheet D.

Step 3. Complete Worksheet D below.

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Worksheet D. Taxpayer Allocating With

Divorced or Separated Taxpayers

1. Enter the decimal from line 1 of the

Worksheet C completed by one of the

former spouses from Step 1 above ....... 1.

2. Enter as a decimal the percentage from

Step 1 above ......................... 2.

3. Multiply line 1 by line 2 ................

4. Enter the decimal from line 1 of the

Worksheet C completed by the other former

spouse from Step 2 above ............. 4.

5. Enter as a decimal the percentage from

Step 2 above ......................... 5.

6. Multiply line 4 by line 5 .................

7. Add line 3 and line 6. This is the allocation

percentage. Go to Step 4 below ......... 7.

Step 4. If you use the same percentages in Steps 1 and 2

above for every month to which this allocation method ap-

plies, use only one of lines 30 through 33 in Part IV to re-

port the allocation. If you use different percentages for dif-

ferent months in Step 1 or Step 2, use a separate line in

Part IV for each allocation percentage. Complete the line

as explained below.

Column (a). Enter the Marketplace-assigned policy

number from Form 1095-A, line 2. If the policy number on

the Form 1095-A is more than 15 characters, enter only

the last 15 characters.

Column (b). Enter the SSN of the former spouse

whose percentage you entered on Worksheet D, line 1.

Column (c). Enter the first month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “01” in column

(c).

Column (d). Enter the last month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “06” in column

(d).

Column (e). Enter the decimal from Worksheet D,

line 7.

Columns (f) and (g). Enter the decimal from Work-

sheet D, line 7.

Example 1. Kara and David were married at the begin-

ning of 2023 and have two children, Meredith and Sam.

Kara enrolled herself, David, Meredith, and Sam in a

qualified health plan with coverage effective January 1.

For each month of coverage, the enrollment premiums

were $700, the applicable SLCSP premium for a coverage

family of four was $650, and the APTC was $425.

Meredith and Sam moved in with their grandmother, Ly-

dia, in May. Kara and David divorced in September. Kara

enrolled in a new qualified health plan for self-only cover-

age. David became eligible for and enrolled in em-

ployer-sponsored self-only coverage. Meredith and Sam

became eligible for and enrolled in government-spon-

sored coverage. All of the new plans have coverage

effective October 1. Lydia is enrolled in employer-spon-

sored coverage.

On their respective tax returns, Kara files as single and

includes only herself in her tax family; David files as single

and includes only himself in his tax family; and Lydia files

as head of household and includes Meredith and Sam in

her tax family.

Under Step 1 of Rules for the Taxpayers Who Divorced

or Legally Separated in 2023 and Are Also Allocating With

Another Taxpayer, Kara and David agree to allocate the

policy amounts 30% to Kara and 70% to David. Under

Step 2 of that method (Kara, David) and under Rules for

the Taxpayer(s) Allocating With Taxpayers Who Divorced

or Legally Separated in 2023 (Lydia), Kara and Lydia

agree to allocate 80% of the policy amounts to Lydia, and

David and Lydia agree to allocate 50% of the policy

amounts to Lydia. Each of them completes a worksheet as

shown below and uses it to complete Part IV.

Kara completes Worksheet C as follows.

Kara's Worksheet C. Allocations for Divorced

or Legally Separated Taxpayers

1. Enter as a decimal your percentage from

Step 1 above ...................... 1.

0.30

2. Enter 1.0 .........................

1.0

3. Enter as a decimal the total of the

percentages from Step 2 above

allocated to the other taxpayer(s) ..... 3.

0.80

4. Subtract line 3 from line 2 ...........

0.20

5. Multiply line 1 by line 4. Enter the result

as a decimal. This is the allocation

percentage. Go to Step 4 below ...... 5.

0.06

After completing Worksheet C, Kara completes Form

8962, Part IV, line 30, as follows.

Column (a). Kara enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Kara enters David's SSN.

Column (c). Kara enters “01.”

Column (d). Kara enters “09.”

Columns (e), (f), and (g). Kara enters “0.06.”

After completing Part IV, Kara multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

Form 8962, lines 12 through 20, columns (a), (b), and (f).

On each of those lines, she will enter $42 in column (a)

(enrollment premiums of $700 x 0.06), $39 in column (b)

(applicable SLCSP premium of $650 x 0.06), and $26 in

column (f) (APTC of $425 x 0.06). She completes her

Form 8962, lines 21 through 23, columns (a), (b), and (f),

by entering the monthly amounts from her separate Form

1095-A for her self-only coverage from October through

December. She does not allocate those amounts.

David completes Worksheet C as follows.

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David's Worksheet C. Allocations for

Divorced or Legally Separated Taxpayers

1. Enter as a decimal your percentage

from Step 1 above ................ 1.

0.70

2. Enter 1.0 ........................

1.0

3. Enter as a decimal the total of the

percentages from Step 2 above

allocated to the other

taxpayer(s) ...................... 3.

0.50

4. Subtract line 3 from line 2 ..........

0.50

5. Multiply line 1 by line 4. Enter the result

as a decimal. This is the allocation

percentage. Go to Step 4 below ..... 5.

0.35

After completing Worksheet C, David completes Form

8962, Part IV, line 30, as follows.

Column (a). David enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). David enters Kara's SSN.

Column (c). David enters “01.”

Column (d). David enters “09.”

Columns (e), (f), and (g). David enters “0.35.”

After completing Part IV, David multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

Form 8962, lines 12 through 20, columns (a), (b), and (f).

On each of those lines, he will enter $245 in column (a)

(enrollment premiums of $700 x 0.35), $228 in column (b)

(applicable SLCSP premium of $650 x 0.35), and $149 in

column (f) (APTC of $425 x 0.35). David leaves Form

8962, lines 21 through 23, blank because he was not en-

rolled in a qualified health plan during October through

December.

Lydia completes Worksheet D as follows.

Lydia's Worksheet D. Taxpayer Allocating

With Divorced or Legally Separated

Taxpayers

1. Enter the decimal from line 1 of the

Worksheet C completed by one of the

former spouses from Step 1

above ......................... 1.

0.30

2. Enter as a decimal the percentage

from Step 1 above ............... 2.

0.80

3. Multiply line 1 by line 2 ............

0.24

4. Enter the decimal from line 1 of the

Worksheet C completed by the other

former spouse from Step 2

above .......................... 4.

0.70

5. Enter as a decimal the percentage

from Step 2 above ............... 5.

0.50

6. Multiply line 4 by line 5 ............

0.35

7. Add line 3 and line 6. This is the

allocation percentage. Go to Step 4

below .......................... 7.

0.59

After completing Worksheet D, Lydia completes Form

8962, Part IV, line 30, as follows.

Column (a). Lydia enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Lydia enters Kara's SSN.

Column (c). Lydia enters “01.”

Column (d). Lydia enters “09.”

Columns (e), (f), and (g). Lydia enters “0.59.”

After completing Part IV, Lydia multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

Form 8962, lines 12 through 20, columns (a), (b), and (f).

On each of those lines, she will enter $413 in column (a)

(enrollment premiums of $700 x 0.59), $384 in column (b)

(applicable SLCSP premium of $650 x 0.59), and $251 in

column (f) (APTC of $425 x 0.59). Lydia leaves Form

8962, lines 21 through 23, blank because she, Meredith,

and Sam were not enrolled in a qualified health plan dur-

ing October through December.

Example 2. The facts are the same as in Example 1,

except that in May, Meredith moved in with her grand-

mother, Lydia, and Sam moved in with his aunt, Kimberly.

On their respective tax returns, Kara files as single and

includes only herself in her tax family; David files as single

and includes only himself in his tax family; Lydia files as

head of household and includes Meredith in her tax family;

and Kimberly files as head of household and includes

Sam in her tax family. Kimberly is enrolled in em-

ployer-sponsored coverage.

Under Step 1 of Rules for the Taxpayers Who Divorced

or Legally Separated in 2023 and Are Also Allocating With

Another Taxpayer, Kara and David agree to allocate the

policy amounts 40% to Kara and 60% to David. Under

Step 2 of that method (Kara, David) and under Rules for

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the Taxpayer(s) Allocating With Taxpayers Who Divorced

or Legally Separated in 2023 (Lydia, Kimberly), Kara and

Lydia agree to allocate 50% of the policy amounts to Ly-

dia, and Kara and Kimberly agree to allocate 25% of the

policy amounts to Kimberly. David and Lydia agree to allo-

cate 20% of the policy amounts to Lydia, and David and

Kimberly agree to allocate 25% of the policy amounts to

Kimberly. Each of them completes a worksheet as shown

below and uses it to complete Part IV.

Kara completes Worksheet C as follows.

Kara's Worksheet C. Allocations for Divorced

or Legally Separated Taxpayers

1. Enter as a decimal your percentage

from Step 1 above ................. 1.

0.40

2. Enter 1.0 .........................

1.0

3. Enter as a decimal the total of the

percentages from Step 2 above

allocated to the other

taxpayer(s) ....................... 3.

0.75*

4. Subtract line 3 from line 2 ...........

0.25

5. Multiply line 1 by line 4. Enter the result

as a decimal. This is the allocation

percentage. Go to Step 4 below ...... 5.

0.10

* This is the total of Kara's agreed percentages with Lydia and

Kimberly (0.50 + 0.25).

After completing Worksheet C, Kara completes Form

8962, Part IV, line 30, as follows.

Column (a). Kara enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Kara enters David's SSN.

Column (c). Kara enters “01.”

Column (d). Kara enters “09.”

Columns (e), (f), and (g). Kara enters “0.10.”

After completing Part IV, Kara completes her Form

8962 in the same manner described in Example 1, earlier,

but applies the different allocation percentage.

David completes Worksheet C as follows.

David's Worksheet C. Allocations for

Divorced or Legally Separated Taxpayers

1. Enter as a decimal your percentage

from Step 1 above ................ 1.

0.60

2. Enter 1.0 ........................

1.0

3. Enter as a decimal the total of the

percentages from Step 2 above

allocated to the other

taxpayer(s) ...................... 3.

0.45*

4. Subtract line 3 from line 2 ..........

0.55

5. Multiply line 1 by line 4. Enter the result

as a decimal. This is the allocation

percentage. Go to Step 4 below ..... 5.

0.33

* This is the total of David's agreed percentages with Lydia

and Kimberly (0.20 + 0.25).

After completing Worksheet C, David completes Form

8962, Part IV, line 30, as follows.

Column (a). David enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). David enters Kara's SSN.

Column (c). David enters “01.”

Column (d). David enters “09.”

Columns (e), (f), and (g). David enters “0.33.”

After completing Part IV, David completes his Form

8962 in the same manner described in Example 1, earlier,

but applies the different allocation percentage.

Lydia completes Worksheet D as follows.

Lydia's Worksheet D. Taxpayer Allocating

With Divorced or Legally Separated

Taxpayers

1. Enter the decimal from line 1 of the

Worksheet C completed by one of the

former spouses from Step 1

above ......................... 1.

0.40

2. Enter as a decimal the percentage

from Step 1 above ............... 2.

0.50

3. Multiply line 1 by line 2 ............

0.20

4. Enter the decimal from line 1 of the

Worksheet C completed by the other

former spouse from Step 2

above .......................... 4.

0.60

5. Enter as a decimal the percentage

from Step 2 above ............... 5.

0.20

6. Multiply line 4 by line 5 ............

0.12

7. Add line 3 and line 6. This is the

allocation percentage. Go to Step 4

below .......................... 7.

0.32

After completing Worksheet D, Lydia completes Form

8962, Part IV, line 30, as follows.

Column (a). Lydia enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Lydia enters Kara's SSN.

Column (c). Lydia enters “01.”

Column (d). Lydia enters “09.”

Columns (e), (f), and (g). Lydia enters “0.32.”

After completing Part IV, Lydia completes her Form

8962 in the same manner as in Example 1, earlier, but ap-

plies the different allocation percentage.

Kimberly completes Worksheet D as follows.

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Kimberly's Worksheet D. Taxpayer Allocating

With Divorced or Legally Separated

Taxpayers

1. Enter the decimal from line 1 of the

Worksheet C completed by one of the

former spouses from Step 1

above ......................... 1.

0.40

2. Enter as a decimal the percentage

from Step 1 above ............... 2.

0.25

3. Multiply line 1 by line 2 ............

0.10

4. Enter the decimal from line 1 of the

Worksheet C completed by the other

former spouse from Step 2

above ......................... 4.

0.60

5. Enter as a decimal the percentage

from Step 2 above ............... 5.

0.25

6. Multiply line 4 by line 5 ............

0.15

7. Add line 3 and line 6. This is the

allocation percentage. Go to Step 4

below .......................... 7.

0.25

After completing Worksheet D, Kimberly completes

Form 8962, Part IV, line 30, as follows.

Column (a). Kimberly enters the Marketplace-as-

signed policy number from Form 1095-A, line 2.

Column (b). Kimberly enters Kara's SSN.

Column (c). Kimberly enters “01.”

Column (d). Kimberly enters “09.”

Columns (e), (f), and (g). Kimberly enters “0.25.”

After completing Part IV, Kimberly completes her Form

8962 in the same manner described for Lydia in Exam-

ple 1, earlier, but applies the different allocation percent-

age.

Allocation Among Taxpayers Who Are

Married But Not Filing a Joint Return

and One or More Other Taxpayers

Use this section if you meet either of the following condi-

tions and no other allocations for the policy are necessary.

•

You are allocating enrollment premiums and APTC

with a spouse to whom you are legally married but not

filing a joint return in 2023 and you are also allocating

enrollment premiums, applicable SLCSP premiums,

and APTC with another taxpayer who is including in

their tax family an individual who was enrolled in a

qualified health plan with members of your and your

spouse’s tax families.

•

You are the taxpayer who is including in your tax family

an individual who was enrolled in the plan with tax

family members of taxpayers who must also allocate

policy amounts because the taxpayers are legally

married but not filing a joint return in 2023.

Example. Pat and Jamie were married for all of 2023

and have three children, Jason, Alicia, and Dawn. All five

individuals enrolled in a qualified health plan and were

covered for all of 2023. At enrollment, Pat and Jamie ex-

pected to file a joint return and include the children in their

tax family for the year of coverage. However, Pat and Ja-

mie change their minds and file as married filing sepa-

rately and each includes only themselves in their respec-

tive tax family. Neither checks the box in the top right-hand

corner of Form 8962. Jason, Alicia, and Dawn moved in

with their uncle, Andy, in April. Andy files as head of

household and includes Jason, Alicia, and Dawn in his tax

family.

Pat and Jamie use the allocation method under Rules

for the Married Taxpayers Not Filing a Joint Return and

Also Allocating With Another Taxpayer next.

Andy uses the allocation method under Rules for the

Taxpayer(s) Allocating With Married Taxpayers Not Filing

a Joint Return, later.

Rules for the Married Taxpayers Not Filing a

Joint Return and Also Allocating With

Another Taxpayer

Use this allocation method if you are married but not filing

a joint return and you must allocate policy amounts with

your spouse and with a taxpayer who is including in their

tax family an individual enrolled in a qualified health plan

with members of your and your spouse’s tax families. Un-

der this method, you must first allocate 50% each of en-

rollment premiums and APTC to yourself and your spouse.

Line 4 of Worksheet E accomplishes this 50% allocation.

Complete the steps below to determine the amounts to

enter on your Form 8962, Part IV.

Step 1. Determine the applicable SLCSP for your cover-

age family. See Determining the Premium for the Applica-

ble Second Lowest Cost Silver Plan (SLCSP), earlier. For

this purpose, your coverage family or your spouse’s cover-

age family (but not both) should include the individuals the

other taxpayer is including in their tax family and who was

enrolled in a qualified health plan with your and your spou-

se’s tax family members. Enter the applicable SLCSP pre-

mium you determined on line 5 of Worksheet E.

Step 2. Separately from the first allocation (the 50%

spousal allocation), determine an allocation percentage

with the taxpayer(s) including in their tax family the individ-

ual(s) enrolled in the plan. You may agree on any alloca-

tion percentage from -0- to 100. You may use the percent-

age you agreed on for every month in which this allocation

rule applies, or you may agree on different percentages for

different months. However, you must use the same alloca-

tion percentage for all policy amounts (enrollment premi-

ums, applicable SLCSP premiums, and APTC) in a month.

If you cannot agree on an allocation percentage, the allo-

cation percentage is equal to the number of individuals the

other taxpayer includes in their tax family for the tax year

who were enrolled in the qualified health plan for which

you are allocating amounts, divided by the total number of

individuals enrolled in the plan. The allocation percentage

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is the percentage that applies to the amounts the other

taxpayer must use to compute the PTC and reconcile it

with APTC. You must compute the PTC and reconcile

APTC using the remaining amounts.

Step 3. Complete Worksheet E below.

Worksheet E. Allocations for Married

Taxpayers Not Filing a Joint Return

1. Enter 1.0 .......................

1.0

2. Enter as a decimal the total of the

percentage(s) from Step 2 above

allocated to the other

taxpayer(s) ..................... 2.

3. Subtract line 2 from line 1 .........

4. Divide line 3 by 2.0. Enter the result as

a decimal ...................... 4.

5. Enter the applicable SLCSP premium

as determined in Step 1 above. Then,

go to line 6 if you checked the box in

the top right-hand corner of Form

8962, or Exception 1—Certain married

persons living apart under Married

taxpayers (discussed earlier under

Terms You May Need To Know)

applies to you. Otherwise, stop

here ........................... 5.

6. Multiply line 5 by line 3. Complete

Form 8962, Part IV, as instructed in

Step 4 below .................... 6.

Step 4. If you use the same percentage for every month

during which this allocation method applies, use only one

of lines 30 through 33 in Part IV to report the allocation. If

you use different percentages for different months under

Step 2, use a separate line in Part IV for each allocation

percentage. Complete the line as explained below.

Column (a). Enter the Marketplace-assigned policy

number from Form 1095-A, line 2. If the policy number on

the Form 1095-A is more than 15 characters, enter only

the last 15 characters.

Column (b). Enter the SSN of your spouse.

Column (c). Enter the first month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “01” in column

(c).

Column (d). Enter the last month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “06” in column

(d).

Column (e). If your filing status is married filing sepa-

rately and you did not check the box in the top right-hand

corner of Form 8962, leave column (e) blank. If you

checked the box, or Exception 1—Certain married per-

sons living apart under Married taxpayers (discussed ear-

lier under Terms You May Need To Know) applies to you,

enter the decimal from line 4 of Worksheet E in column

(e).

Column (f). If your filing status is married filing sepa-

rately and you did not check the box in the top right-hand

corner of Form 8962, leave column (f) blank. If you

checked the box, or Exception 1—Certain married per-

sons living apart under Married taxpayers (discussed ear-

lier under Terms You May Need To Know) applies to you,

enter the decimal from line 3 of Worksheet E in column (f)

and include the amount from line 6 of Worksheet E in the

totals on the appropriate lines of Form 8962, column (b),

for the months allocated.

Column (g). Enter the decimal from line 4 of Work-

sheet E.

Rules for the Taxpayer(s) Allocating With

Married Taxpayers Not Filing a Joint Return

Use this allocation method if you are including in your tax

family an individual who was enrolled in a qualified health

plan with tax family members of taxpayers who must also

allocate policy amounts because the taxpayers are legally

married but not filing a joint return in 2023.

Step 1. Determine an allocation percentage with one of

the spouses. You may agree on any allocation percentage

from -0- to 100. You may use the percentage you agreed

on for every month in which this allocation rule applies, or

you may agree on different percentages for different

months. However, you must use the same allocation per-

centage for all policy amounts (enrollment premiums, ap-

plicable SLCSP premiums, and APTC) in a month. If you

cannot agree on an allocation percentage, the allocation

percentage is equal to the number of individuals you will

include in your tax family for the tax year who were enrol-

led in the qualified health plan for which you are allocating

policy amounts, divided by the total number of individuals

enrolled in the plan. The allocation percentage is the per-

centage that applies to the amounts you must use to com-

pute the PTC and reconcile it with APTC. The spouses

must compute the PTC and reconcile APTC using the re-

maining amounts. Enter the percentage as a decimal on

line 1 of Worksheet F.

Step 2. Allocate the policy amounts with the second

spouse using the same rules as Step 1 above. Enter the

percentage as a decimal on line 3 of Worksheet F.

Step 3. Complete Worksheet F below.

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Worksheet F. Taxpayer Allocating With

Married Taxpayers Not Filing a Joint Return

Part I: Allocation Percentage for Enrollment Premiums

and APTC Paid

1. Enter as a decimal the percentage

from Step 1 above ................ 1.

2. Divide line 1 by 2.0. Enter the result as

a decimal ........................ 2.

3. Enter as a decimal the percentage

from Step 2 above ................ 3.

4. Divide line 3 by 2.0. Enter the result as

a decimal ........................ 4.

5. Add lines 2 and 4. Enter the result as a

decimal. This is your allocation

percentage for enrollment premiums

and APTC paid ................... 5.

Part II: Allocation of the Applicable SLCSP Premium

6. Enter the amount of the applicable

SLCSP premium from line 5 of

Worksheet E completed by the spouse

in Step 1 above ................... 6.

7. Enter the decimal from line 1 of this

worksheet ....................... 7.

8. Multiply line 6 by line 7 .............

9. Enter the amount of the applicable

SLCSP premium from line 5 of

Worksheet E completed by the spouse

in Step 2 above ................... 9.

10.

Enter the decimal from line 3 of this

worksheet .......................

10.

11.

Multiply line 9 by line 10 ............

11.

12.

Add lines 8 and 11. This is the

applicable SLCSP premium allocated

to you that you must include on lines 12

through 23, column (b), for the months

in which this allocation applies ......

12.

Step 4. If you use the same percentage for every month

during which this allocation method applies, use only one

of lines 30 through 33 in Part IV to report the allocation. If

you use different percentages for different months, use a

separate line in Part IV for each allocation percentage.

Complete the line as explained below.

Column (a). Enter the Marketplace-assigned policy

number from Form 1095-A, line 2. If the policy number on

the Form 1095-A is more than 15 characters, enter only

the last 15 characters.

Column (b). Enter the SSN of the spouse whose per-

centage you entered on Worksheet F, line 1.

Column (c). Enter the first month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “01” in column

(c).

Column (d). Enter the last month you are allocating

policy amounts. For example, if you are allocating a per-

centage from January through June, enter “06” in column

(d).

Column (e). Enter the decimal from Worksheet F,

line 5.

Column (f). Leave column (f) blank.

Column (g). Enter the decimal from Worksheet F,

line 5.

Example. Pat and Jamie were married for all of 2023

and have three children, Jason, Alicia, and Dawn. All five

individuals enrolled in a qualified health plan and were

covered for all of 2023. For each month of coverage, the

enrollment premiums were $1,000, the premium for the

applicable SLCSP for a coverage family of five was $800,

and the APTC was $200. At enrollment, Pat and Jamie ex-

pected to file a joint return and include the children in their

tax family.

Jason, Alicia, and Dawn moved in with their uncle,

Andy, in April. On their respective tax returns, Pat and Ja-

mie file as married filing separately and each includes only

themselves in their respective tax family. Neither checks

the box in the top right-hand corner of Form 8962. Andy

files as head of household and includes Jason, Alicia, and

Dawn in his tax family.

Pat and Jamie allocate the enrollment premiums and

the APTC 50% to Pat and 50% to Jamie. Under Step 1 of

Rules for the Married Taxpayers Not Filing a Joint Return

and Also Allocating With Another Taxpayer, earlier, Pat

and Jamie determine that Pat’s coverage family will in-

clude Pat, Jason, and Alicia and that Jamie’s coverage

family will include Jamie and Dawn. Pat and Jamie each

look up their applicable SLCSP premiums. The applicable

SLCSP premium for Pat’s coverage family of three is $450

and the applicable SLCSP premium for Jamie’s coverage

family of two is $400.

Under Step 2 of Rules for the Married Taxpayers Not

Filing a Joint Return and Also Allocating With Another Tax-

payer (Pat, Jamie) and under Rules for the Taxpayer(s) Al-

locating With Married Taxpayers Not Filing a Joint Return

(Andy), earlier, Pat and Andy agree to allocate 67% of the

policy amounts to Andy, and Jamie and Andy agree to al-

locate 50% of the policy amounts to Andy. Pat, Jamie, and

Andy each complete a worksheet as shown below and

use it to complete Part IV.

Pat completes Worksheet E as follows.

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Pat's Worksheet E. Allocations for Married

Taxpayers Not Filing a Joint Return

1. Enter 1.0 ........................

1.0

2. Enter as a decimal the total of the

percentage(s) from Step 2 above

allocated to the other

taxpayer(s) ...................... 2.

0.67

3. Subtract line 2 from line 1 ..........

0.33

4. Divide line 3 by 2.0. Enter the result as

a decimal ....................... 4.

0.17

5. Enter the applicable SLCSP premium

as determined in Step 1 above. Then,

go to line 6 if you checked the box in

the top right-hand corner of Form

8962, or Exception 1—Certain married

persons living apart under Married

taxpayers (discussed earlier under

Terms You May Need To Know) applies

to you. Otherwise, stop here ........ 5.

450

6. Multiply line 5 by line 3. Complete

Form 8962, Part IV, as instructed in

Step 4 below ..................... 6.

After completing Worksheet E, Pat completes Form

8962, Part IV, line 30, as follows.

Column (a). Pat enters the Marketplace-assigned pol-

icy number from Form 1095-A, line 2.

Column (b). Pat enters Jamie’s SSN.

Column (c). Pat enters “01.”

Column (d). Pat enters “12.”

Column (e). Pat leaves this column blank.

Column (f). Pat leaves this column blank.

Column (g). Pat enters “0.17.”

After completing Part IV, Pat multiplies the APTC from

Form 1095-A, Part III, column C, by the percentage in Part

IV, column (g), and enters $34 (APTC of $200 x 0.17) on

Form 8962, lines 12 through 23, column (f). Pat leaves

lines 12 through 23, columns (a) through (e), blank be-

cause he is not eligible to take the PTC.

Jamie completes Worksheet E as follows.

Jamie's Worksheet E. Allocations for Married

Taxpayers Not Filing a Joint Return

1. Enter 1.0 .......................

1.0

2. Enter as a decimal the total of the

percentage(s) from Step 2 above

allocated to the other

taxpayer(s) ..................... 2.

0.50

3. Subtract line 2 from line 1 .........

0.50

4. Divide line 3 by 2.0. Enter the result as

a decimal ...................... 4.

0.25

5. Enter the applicable SLCSP premium

as determined in Step 1 above. Then,

go to line 6 if you checked the box in

the top right-hand corner of Form

8962, or Exception 1—Certain married

persons living apart under Married

taxpayers (discussed earlier under

Terms You May Need To Know)

applies to you. Otherwise, stop

here ........................... 5.

400

6. Multiply line 5 by line 3. Complete

Form 8962, Part IV, as instructed in

Step 4 below .................... 6.

After completing Worksheet E, Jamie completes Form

8962, Part IV, line 30, as follows.

Column (a). Jamie enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Jamie enters Pat’s SSN.

Column (c). Jamie enters “01.”

Column (d). Jamie enters “12.”

Column (e). Jamie leaves this column blank.

Column (f). Jamie leaves this column blank.

Column (g). Jamie enters “0.25.”

After completing Part IV, Jamie multiplies the APTC

from Form 1095-A, Part III, column C, by the percentage in

Part IV, column (g), and enters $50 (APTC of $200 x 0.25)

on Form 8962, lines 12 through 23, column (f). Jamie

leaves lines 12 through 23, columns (a) through (e), blank

because she is not eligible to take the PTC.

Andy completes Worksheet F as follows.

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Andy's Worksheet F. Taxpayer Allocating With

Married Taxpayers Not Filing a Joint Return

Part I: Allocation Percentage for Enrollment Premiums

and APTC Paid

1. Enter as a decimal the percentage

from Step 1 above ................ 1.

0.67

2. Divide line 1 by 2.0. Enter the result as

a decimal ........................ 2.

0.34

3. Enter as a decimal the percentage

from Step 2 above ................ 3.

0.50

4. Divide line 3 by 2.0. Enter the result as

a decimal ........................ 4.

0.25

5. Add lines 2 and 4. Enter the result as a

decimal. This is your allocation

percentage for enrollment premiums

and APTC paid ................... 5.

0.59

Part II: Allocation of the Applicable SLCSP Premium

6. Enter the amount of the applicable

SLCSP premium from line 5 of

Worksheet E completed by the spouse

in Step 1 above ................... 6.

450

7. Enter the decimal from line 1 of this

worksheet ....................... 7.

0.67

8. Multiply line 6 by line 7 .............

302

9. Enter the amount of the applicable

SLCSP premium from line 5 of

Worksheet E completed by the spouse

in Step 2 above ................... 9.

400

10.

Enter the decimal from line 3 of this

worksheet ....................... 10.

0.50

11.

Multiply line 9 by line 10 ............

11.

200

12.

Add lines 8 and 11. This is the

applicable SLCSP premium allocated

to you that you must include on lines

12 through 23, column (b), for the

months in which this allocation

applies .......................... 12.

502

After completing Worksheet F, Andy completes Form

8962, Part IV, line 30, as follows.

Column (a). Andy enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Andy enters Pat’s SSN.

Column (c). Andy enters “01.”

Column (d). Andy enters “12.”

Column (e). Andy enters “0.59.”

Column (f). Andy leaves this column blank.

Column (g). Andy enters “0.59.”

After completing Part IV, Andy multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

Form 8962, lines 12 through 23, columns (a), (b), and (f).

On each of those lines, he will enter $590 in column (a)

(enrollment premiums of $1,000 x 0.59), $502 in column

(b) (applicable SLCSP premium allocated to him on Work-

sheet F, line 12), and $118 in column (f) (APTC of $200 x

0.59).

Other Taxpayers Allocating Policy

Amounts With Two or More Other

Taxpayers

If you or another person in your tax family was enrolled in

a qualified health plan with individuals in at least two other

tax families, APTC was paid for coverage under the policy,

and you don't meet the rules for divorce or for married indi-

viduals filing separate returns, you and the taxpayers who

are including in their tax family the individuals not in your

tax family should use the instructions for Form 8962 under

Allocation Situation 4. Other situations where a policy is

shared between two tax families to allocate amounts from

the qualified health plan. There must be an allocation per-

centage for each taxpayer who is including in their tax

family an individual who is enrolled in a qualified health

plan with a member of your tax family. If you cannot agree

on an allocation percentage with all taxpayers who are in-

cluding enrolled individuals in a tax family, the allocation

percentage for a particular taxpayer is equal to the num-

ber of individuals the taxpayer will include in their tax fam-

ily for the tax year who were enrolled in the qualified health

plan for which you are allocating policy amounts, divided

by the total number of individuals enrolled in the plan.

Example 1. Erik enrolled himself and his sons, Bill and

Arvind, in a qualified health plan with coverage effective

for all of 2023. For the year, the enrollment premiums were

$8,000; the premium for the applicable SLCSP for a cover-

age family consisting of Erik, Bill, and Arvind was $9,000;

and the APTC paid for their coverage was $4,500. In

March, Bill dropped out of school to work full-time and

moved permanently into his own apartment. In May, Ar-

vind moved in with his mother Sharon, where he lived until

the end of 2023. On their respective tax returns, Erik files

as single and includes only himself in his tax family, Bill

files as single and includes only himself in his tax family,

and Sharon files as head of household and includes her-

self and Arvind in her tax family.

Erik and Bill agree to allocate 25% of the policy

amounts to Bill. Erik and Sharon agree to allocate 40% of

the policy amounts to Sharon. Erik allocates the remaining

35% of the policy amounts to himself.

Bill completes Form 8962, Part IV, line 30, as follows.

Column (a). Bill enters the Marketplace-assigned pol-

icy number from Form 1095-A, line 2.

Column (b). Bill enters Erik's SSN.

Column (c). Bill enters “01.”

Column (d). Bill enters “12.”

Columns (e), (f), and (g). Bill enters an allocation

percentage of “0.25” in columns (e), (f), and (g).

After completing Part IV, Bill multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

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his Form 8962, lines 12 through 23, columns (a), (b), and

(f). The sum of his monthly entries will be $2,000 in col-

umn (a) (enrollment premiums of $8,000 x 0.25), $2,250 in

column (b) (applicable SLCSP premium of $9,000 x 0.25),

and $1,125 in column (f) (APTC of $4,500 x 0.25).

Sharon completes Form 8962, Part IV, line 30, as fol-

lows.

Column (a). Sharon enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Sharon enters Erik’s SSN.

Column (c). Sharon enters “01.”

Column (d). Sharon enters “12.”

Columns (e), (f), and (g). Sharon enters an allocation

percentage of “0.40” in columns (e), (f), and (g).

After completing Part IV, Sharon multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

Form 8962, lines 12 through 23, columns (a), (b), and (f).

The sum of her monthly entries will be $3,200 in column

(a) (enrollment premiums of $8,000 x 0.40), $3,600 in col-

umn (b) (applicable SLCSP premium of $9,000 x 0.40),

and $1,800 in column (f) (APTC of $4,500 x 0.40).

Erik completes Form 8962, Part IV, line 30, as follows.

Column (a). Erik enters the Marketplace-assigned

policy number from Form 1095-A, line 2.

Column (b). Erik enters either Bill’s SSN or Sharon’s

SSN.

Column (c). Erik enters “01.”

Column (d). Erik enters “12.”

Columns (e), (f), and (g). Erik enters an allocation

percentage of “0.35” in columns (e), (f), and (g), which is

the percentage of policy amounts not allocated to Bill or

Sharon.

After completing Part IV, Erik multiplies the amounts

from Form 1095-A, Part III, by the corresponding percen-

tages in Part IV, and enters these allocated amounts on

his Form 8962, lines 12 through 23, columns (a), (b), and

(f). The sum of his monthly entries will be $2,800 in col-

umn (a) (enrollment premiums of $8,000 x 0.35), $3,150 in

column (b) (applicable SLCSP of $9,000 x 0.35), and

$1,575 in column (f) (APTC of $4,500 x 0.35).

Example 2. The facts are the same as in Example 1,

except Erik and Bill cannot agree on an allocation percent-

age. Because Erik did not agree on an allocation percent-

age with all taxpayers who are including individuals in a

tax family, Bill and Sharon determine their allocation per-

centages of 33% by dividing the number of enrolled indi-

viduals each will include in their tax family (1 each for Bill

and Sharon) by the number of individuals enrolled in the

plan (3, Erik, Bill, and Arvind). Erik’s allocation percentage

is 34%, which is the percentage of policy amounts not al-

located to Bill and Sharon. Each taxpayer completes Part

IV as explained in Example 1 using these percentages.

Alternative Calculation for Year

of Marriage

If you got married during 2023 and APTC was paid for an

individual in your tax family, you may want to use the alter-

native calculation for year of marriage, an optional calcula-

tion that may reduce the amount of excess APTC you

would have to repay under the general rules. Before you

read this section, first read the instructions for line 9 in the

Instructions for Form 8962. Complete Table 4 and, if re-

quired, Worksheet 3 in those instructions.

If you do not meet either of the above conditions,

you are not eligible to elect the alternative calcu-

lation. Leave Form 8962, Part V, blank.

If you are eligible, electing the alternative calculation

may reduce the amount of excess APTC you have to re-

pay. Electing the alternative calculation is optional. Work-

sheet V will tell you whether the alternative calculation will

benefit you.

Before you begin the steps, determine your alterna-

tive family size and your spouse’s alternative family size

using the instructions under Alternative Family Size next.

Then, read Table A to determine which steps to complete.

Alternative Family Size

Alternative family size is used to determine an alternative

monthly contribution amount (see Monthly contribution

amount under Terms You May Need To Know, earlier) on

Worksheets I and III, which may reduce the amount of ex-

cess APTC for the pre-marriage months that you must re-

pay.

When determining your alternative family size, include

yourself and any individual in the tax family who qualifies

as your dependent for the year under the rules explained

in the Instructions for Form 1040 or the Instructions for

Form 1040-NR. Do not include any individual who does

not qualify as your dependent under those rules or who is

included in your spouse’s alternative family size.

When determining your spouse’s alternative family size,

include your spouse and any individual in the tax family

who qualifies as your spouse’s dependent for the year un-

der the rules explained in the Instructions for Form 1040 or

the Instructions for Form 1040-NR. Do not include any in-

dividual who does not qualify as your spouse’s dependent

under those rules or who is included in your alternative

family size.

Note. You may include an individual who qualifies as

the dependent of both you and your spouse in either alter-

native family size.

Example 1. Ron, Suzy, and their son Max have lived

together since July 2022. Ron and Suzy got married in Au-

gust 2023. Each of them had coverage under a qualified

health plan for the months before September. Max

qualifies as Ron’s dependent under the rules explained in

CAUTION

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the Instructions for Form 1040. Max also qualifies as Su-

zy’s dependent under those rules. Ron and Suzy can in-

clude Max in either alternative family size.

Example 2. Rob and his son Liam lived together from

January through May 2023. On June 10, 2023, Rob mar-

ried Tara. She moved in with Rob and Liam on June 11.

Each of them had coverage under a qualified health plan

for the months before July. Liam qualifies as Rob’s de-

pendent under the rules explained in the Instructions for

Form 1040. Liam also qualifies as Tara’s dependent under

those rules. (Liam is Tara’s stepchild and lived with Tara

for more than half of 2023.) Rob and Tara can include

Liam in either alternative family size.

Example 3. Stacey and her daughter Leia lived to-

gether from January through July 2023. Stacey married

Vince in August 2023, and Vince moved in with Stacey

and Leia. Each of them had coverage under a qualified

health plan for the months before September. Leia quali-

fies as Stacey’s dependent under the rules explained in

the Instructions for Form 1040. Leia does not qualify as

Vince’s dependent under those rules because Leia did not

live with Vince for more than half of 2023. Stacey must in-

clude Leia in her alternative family size. Vince cannot in-

clude Leia in his alternative family size.

Table A. Which Steps To Complete

Answer the following questions to determine which

steps to complete.

Have you determined your and your spouse's alternative family

size as explained earlier under Alternative Family Size?

Yes. Go to question 2.

No. Read Alternative Family Size. Then, go to question 2.

Is there an individual in your alternative family size (including

yourself) who was enrolled in a qualified health plan for 1 or more

of your pre-marriage months?*

Yes. Complete Steps 1, 2, and 5. Go to question 3.

No. Go to question 3.

Is there an individual in your spouse’s alternative family size

(including your spouse) who was enrolled in a qualified health plan

for 1 or more of your pre-marriage months?*

Yes. Complete Steps 3, 4, and 5. Go to question 4.

No. Go to question 4.

The instructions for Step 5 will prompt you to complete Worksheet

V. If you check the “Yes” box on Worksheet V, line 14, complete

Steps 6, 7, and 8.

* Your pre-marriage months include the month you got married.

If you completed Part IV of Form 8962, do not in-

clude any amounts from Form(s) 1095-A that

were allocated to another taxpayer when complet-

ing the steps for your and your spouse's alternative calcu-

lation.

Step 1

Complete Worksheet I if there is an individual included in

your alternative family size who was enrolled in a qualified

health plan for 1 or more of your pre-marriage months.

TIP

Worksheet for Line 4 of Worksheet I

Use this worksheet to figure the amount to enter on line 4

of Worksheet I.

Enter the amount from line 2 of Worksheet I .......

Enter the amount from line 3 of

Worksheet I ...................

Multiply the amount on line 2 by 4.0 .............

Is the amount on line 1 more than the amount on

line 3?

Yes. Enter 401 here and on line 4 of Worksheet I.

No. Divide the amount on line 1 by the amount on

line 2. If the result is not a whole percentage, do not

round; instead, multiply this number by 100 (to

express it as a percentage) and then drop any

numbers after the decimal point. Enter the result here

and on line 4 of Worksheet I. 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 .........

Step 2

Complete Worksheet II to determine your alternative

monthly credit amounts to include on Form 8962, lines 12

through 23, column (e), for your pre-marriage months. En-

ter in columns A and B on Worksheet II the amounts from

columns A and B in Part III of the Form(s) 1095-A that re-

ports coverage for all individuals in your tax family enrolled

in a qualified health plan for 1 or more pre-marriage

months, including yourself, who are (a) included in Part II

of a Form 1095-A sent to you for the pre-marriage months;

or (b) not included in Part II of the Form 1095-A sent to

you or to your spouse, but who are included in your alter-

native family size.

Missing or incorrect SLCSP premium. For your

pre-marriage months, if there were changes in your cover-

age family that you did not report to the Marketplace or

APTC was not paid for the coverage, or there is an individ-

ual in your coverage family not included in Part II of the

Form 1095-A sent to you who is included in your alterna-

tive family size, you may have to determine a new pre-

mium for your applicable SLCSP for those months. See

Determining the Premium for the Applicable Second Low-

est Cost Silver Plan (SLCSP), earlier.

Step 3

Complete Worksheet III if there is an individual included in

your spouse’s alternative family size who was enrolled in a

qualified health plan for 1 or more of your pre-marriage

months.

Worksheet for Line 4 of Worksheet III

Use this worksheet to figure the amount to enter on line 4

of Worksheet III.

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1. Enter the amount from line 2 of Worksheet III ......

2. Enter the amount from line 3 of

Worksheet III ...................

3. Multiply the amount on line 2 by 4.0 ............

4. Is the amount on line 1 more than the amount on

line 3?

Yes. Enter 401 here and on line 4 of Worksheet III.

No. Divide the amount on line 1 by the amount on

line 2. If the result is not a whole percentage, do not

round; instead, multiply this number by 100 (to

express it as a percentage) and then drop any

numbers after the decimal point. Enter the result here

and on line 4 of Worksheet III. 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 .................................. 4.

Step 4

Complete Worksheet IV to determine your spouse's alter-

native monthly credit amounts to include on Form 8962,

lines 12 through 23, column (e), for your pre-marriage

months. Enter in columns A and B on Worksheet IV the

amounts from columns A and B in Part III of the Form(s)

1095-A that reports coverage for all individuals in your tax

family enrolled in a qualified health plan for 1 or more

pre-marriage months, including your spouse, who are (a)

included in Part II of a Form 1095-A sent to your spouse

for the pre-marriage months; or (b) not included in Part II

of the Form 1095-A sent to you or to your spouse, but who

are included in your spouse's alternative family size.

Missing or incorrect SLCSP premium. For your

pre-marriage months, if there were changes in your spou-

se’s coverage family that your spouse did not report to the

Marketplace or APTC was not paid for the coverage, or

there is an individual in your spouse’s coverage family not

included in Part II of the Form 1095-A sent to your spouse

who is included in your spouse’s alternative family size,

your spouse may have to determine a new premium for

the applicable SLCSP for those months. See Determining

the Premium for the Applicable Second Lowest Cost Silver

Plan (SLCSP), earlier.

Step 5

After you have completed Steps 1 and 2 and/or Steps 3

and 4, complete Worksheet V to determine what entries

you must make on Form 8962, lines 12 through 23, for

your pre-marriage months.

Step 6

Complete Form 8962, lines 35 and 36, using the following

instructions. Follow these instructions only if you checked

the “Yes” box on Worksheet V, line 14.

Line 35.

•

Column (a): Enter the family size from Worksheet I,

line 1.

•

Column (b): Enter the amount from Worksheet I,

line 7.

•

Column (c): Enter the month from Worksheet I, line 8.

•

Column (d): Enter the month from Worksheet I, line 9.

Line 36.

•

Column (a): Enter the family size from Worksheet III,

line 1.

•

Column (b): Enter the amount from Worksheet III,

line 7.

•

Column (c): Enter the month from Worksheet III,

line 8.

•

Column (d): Enter the month from Worksheet III,

line 9.

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Step 7

Complete Form 8962, lines 12 through 23, columns (a)

through (f), using the following instructions. Follow these

instructions only if you checked the “Yes” box on Work-

sheet V, line 14.

Column (a). Enter the amounts from column (a) of Work-

sheet 3 in the Form 8962 instructions.

Column (b). Enter the amounts from column (b) of Work-

sheet 3 in the Form 8962 instructions.

Column (c). For pre-marriage months, enter the totals of

Worksheet II, column C, and Worksheet IV, column C. For

example, if you entered $200 on Worksheet II, column C,

lines 1 through 5, and you entered $250 on Worksheet IV,

column C, lines 3 through 5, enter $200 on lines 12 and

13, and $450 on lines 14 through 16 of Form 8962, col-

umn (c).

For the months you were married for the entire month,

enter the amount from Form 8962, line 8b.

Column (d). Subtract column (c) from column (b) and

enter the result. If zero or less, enter -0-.

Column (e). For your pre-marriage months, enter the

amounts from lines 1 through 12, column A, of Worksheet

V in the boxes for the corresponding months in column (e).

For the months you were married for the entire month,

enter the smaller of column (a) or (d).

Column (f). Enter the amounts from column (f) of Work-

sheet 3 in the Form 8962 instructions.

Step 8

Continue to Form 8962, line 24, and complete the rest of

the form.

Line 26. Enter -0-.

Lines 27 through 29. If line 24 is less than line 25, com-

plete these lines. Otherwise, leave these lines blank.

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Worksheet I. Your Alternative Monthly Contribution Amount Keep for Your Records

1. Alternative family size: Enter the total number of individuals in your alternative family size

(discussed earlier) .................................................................. 1.

2. One-half of household income: Divide Form 8962, line 3, by 2.0. Round to the nearest whole

dollar amount ...................................................................... 2.

3. Alternative federal poverty line: Enter the federal poverty line amount as determined by your

alternative family size on line 1 above and the federal poverty table you used on Form 8962,

line 4 ............................................................................. 3.

4. Alternative household income as a percentage of federal poverty line: Enter the amount from the

worksheet under Step 1.

Continue to Step 3 if you checked the “Yes” box for question 3 in Table A. Otherwise, if you did not

complete Part IV of Form 8962, check the “No” box on line 9 of Form 8962 and continue to line 10. If

you completed Part IV of Form 8962, check the “No” box on line 10, and see Lines 12 Through

23—Monthly Calculation in the Instructions for Form 8962 .................................. 4.

5. Alternative applicable figure: Using your line 4 percentage, locate your applicable figure in Table 2 in

the Instructions for Form 8962 ......................................................... 5.

6. Multiply line 2 by line 5 and enter the result rounded to the nearest whole dollar amount ......... 6.

7. Alternative monthly contribution amount: Divide line 6 by 12.0 and enter the result rounded to the

nearest whole dollar amount .......................................................... 7.

8. Alternative start month: Enter the first full month you or any individual included in your alternative

family size on line 1 had coverage under a qualified health plan. For example, enter “02” if you were

enrolled in a qualified health plan with coverage effective on February 1 ...................... 8.

9. Alternative stop month: Enter the last month you or any individual included in your alternative family

size on line 1 had coverage under a qualified health plan or the month in which you got married,

whichever is earlier. For example, enter “09” if you had coverage under a qualified health plan for all

of 2023 and you got married on September 5 ............................................ 9.

Worksheet II. Your Alternative Monthly Credit Amounts for

Pre-Marriage Months Keep for Your Records

Complete this worksheet only for months beginning with the month on line 8 of Worksheet I and ending with the month

on line 9 of Worksheet I. For example, if you entered “02” on Worksheet I, line 8, and “10” on Worksheet I, line 9, com-

plete only lines 2 through 10 of this worksheet.

Monthly

Calculation

A. Form(s) 1095-A,

lines 21–32,

column A*

B. Form(s) 1095-A,

lines 21–32,

column B*

C. Worksheet I,

line 7

D. Subtract C from

B (If zero or less,

enter -0-.)

E. Smaller of

column A or

column D

1 January

2 February

3 March

4 April

5 May

6 June

7 July

8 August

9 September

10 October

11 November

12 December

* See Step 2, earlier, for instructions on the Form 1095-A amounts to report on this worksheet.

After completing this worksheet: Continue to Step 3 if you checked the “Yes” box for question 3 in Table A. Otherwise, go to Step

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Worksheet III. Your Spouse's Alternative Monthly

Contribution Amount Keep for Your Records

1. Alternative family size: Enter the total number of individuals in your spouse's alternative family size

(discussed earlier) ................................................................... 1.

2. One-half of household income: Divide Form 8962, line 3, by 2.0. Round to the nearest whole

dollar amount ....................................................................... 2.

3. Alternative federal poverty line: Enter the federal poverty line amount as determined by your

spouse's alternative family size on line 1 above and the federal poverty table you used on Form

8962, line 4 ......................................................................... 3.

4. Alternative household income as a percentage of federal poverty line: Enter the amount from the

worksheet under Step 3. If you completed Step 2, continue to Step 5. If you did not complete Step 2

and you did not complete Part IV of Form 8962, check the “No” box on line 9 of Form 8962 and

continue to line 10. If you did not complete Step 2 and you completed Part IV of Form 8962, check

the “No” box on line 10, and see Lines 12 Through 23—Monthly Calculation in the Instructions for

Form 8962 .......................................................................... 4.

5. Alternative applicable figure: Using your line 4 percentage, locate your applicable figure in Table 2 in

the Instructions for Form 8962 .......................................................... 5.

6. Multiply line 2 by line 5 and enter the result rounded to the nearest whole dollar amount .......... 6.

7. Alternative monthly contribution amount: Divide line 6 by 12.0 and enter the result rounded to the

nearest whole dollar amount ........................................................... 7.

8. Alternative start month: Enter the first full month your spouse or any individual included in your

spouse's alternative family size on line 1 had coverage under a qualified health plan. For example,

enter “05” if your spouse was enrolled in a qualified health plan with coverage effective on May 1 . . . 8.

9. Alternative stop month: Enter the last month your spouse or any individual included in your spouse's

alternative family size on line 1 had coverage under a qualified health plan or the month in which you

got married, whichever is earlier. For example, enter “07” if your spouse's coverage under a

qualified health plan (and the coverage of all individuals included in your spouse's alternative family

size) terminated July 31 and you got married on September 5 ................................ 9.

Worksheet IV. Your Spouse's Alternative Monthly Credit

Amounts for Pre-Marriage Months Keep for Your Records

Complete this worksheet only for months beginning with the month on line 8 of Worksheet III and ending with the

month on line 9 of Worksheet III. For example, if you entered “05” on Worksheet III, line 8, and “10” on Worksheet III,

line 9, complete only lines 5 through 10 of this worksheet.

Monthly

Calculation

A. Form(s) 1095-A,

lines 21–32,

column A*

B. Form(s) 1095-A,

lines 21–32,

column B*

C. Worksheet III,

line 7

D. Subtract C from

B (If zero or less,

enter -0-.)

E. Smaller of

column A or

column D

1 January

2 February

3 March

4 April

5 May

6 June

7 July

8 August

9 September

10 October

11 November

12 December

* See Step 4, earlier, for instructions on the Form 1095-A amounts to report on this worksheet.

After completing this worksheet: Continue to Step 5.

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Example of the Alternative

Calculation for Year of Marriage

The following example describes the alternative calcula-

tion for year of marriage for Paulette Oak and Quentin Ce-

dar.

In 2023, Paulette and Quentin were single and main-

tained separate residences until they got married on July

18.

Paulette has no dependents. She was enrolled in a

qualified health plan from January 1 through July 31. The

Marketplace sent her a Form 1095-A (not illustrated)

showing her enrollment information for this 7-month pe-

riod.

Quentin has two dependent children. He and his two

children were enrolled in a qualified health plan from

January 1 through July 31. The Marketplace sent him a

Form 1095-A (not illustrated) showing his enrollment infor-

mation for this 7-month period.

From August 1 through December 31, 2023, Paulette,

Quentin, and Quentin’s two dependent children were en-

rolled together in a different qualified health plan. The

Marketplace sent them a Form 1095-A (not illustrated)

showing their enrollment information for this 5-month pe-

riod.

Paulette and Quentin first complete lines 1 through 8 of

Form 8962. Then, they read the instructions for line 9 and

complete Table 4 (not illustrated) and Worksheet 3 (not il-

lustrated) in the Form 8962 instructions and Worksheets I

through V (not illustrated) in this publication. Using the in-

formation in the worksheets and on Forms 1095-A (not il-

lustrated), they complete lines 9 through 29, 35, and 36 of

Form 8962.

Worksheet V. Alternative Calculation for Year of Marriage

Totals Worksheet Keep for Your Records

Column A. Complete column A below only for the months you have entries in column E of Worksheet II and/or Work-

sheet IV. Leave column A blank for all other months. Add the amounts in column E of Worksheets II and IV separately for

each month and enter the total in column A below on the line for the same month.

Column B. Complete column B below for any month you have an entry in column A. For each month, enter the corre-

sponding amount from lines 1 through 12, column (e), of Worksheet 3 under Line 9 in the Instructions for Form 8962.

Monthly Calculation

A. Total alternative

premium assistance

amounts

B. Premium assistance

amounts (regular

calculation)

1 January ................................................ 1

2 February ............................................... 2

3 March ................................................. 3

4 April ................................................... 4

5 May ................................................... 5

6 June ................................................... 6

7 July ................................................... 7

8 August ................................................. 8

9 September ............................................. 9

10 October ................................................ 10

11 November .............................................. 11

12 December .............................................. 12

13 Totals: Enter the total of column A, lines 1 through 12, and the

total of column B, lines 1 through 12 ......................... 13

14 Is line 13, column A, more than line 13, column B?

Yes. Your alternative calculation reduces your excess APTC. If you did not complete Part IV of Form 8962, check the “Yes”

box on line 9. Also check the “No” box on line 10. Continue to Steps 6, 7, and 8, earlier.

No. The alternative calculation does not reduce your excess APTC. Leave Form 8962, Part V, blank.

•

If you did not complete Part IV of Form 8962, check the “No” box on line 9 and continue to Form 8962, line 10. If you are

required to use lines 12 through 23 of Form 8962, enter the amounts from lines 1 through 12 of Worksheet 3 in the Form

8962 instructions on the lines for the corresponding months and columns on Form 8962.

•

If you completed Part IV of Form 8962, check the “No” box on line 10. Enter the amounts from lines 1 through 12 of

Worksheet 3 in the Form 8962 instructions on the lines for the corresponding months and columns on Form 8962, lines 12

through 23.

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Paulette and Quentin's Form 8962, Lines 1

Through 11

Paulette and Quentin fill out Form 8962 (not illustrated),

lines 1 through 11, as follows.

Line 1. They enter “4” because this is the number of indi-

viduals they included in their tax family.

Line 2a. They enter $108,000, which they figured using

Worksheet 1-1 (not illustrated) in the Form 8962 instruc-

tions.

Line 2b. They leave line 2b blank because neither of

Quentin’s dependent children is required to file a federal

income tax return.

Line 3. They enter $108,000, the sum of lines 2a and 2b.

Line 4. They enter $27,750 from Table 1-1 in the Form

8962 instructions. This is the federal poverty line for a fam-

ily size of 4. They also check box c on line 4.

Line 5. Using Worksheet 2 in the Form 8962 instructions,

they divide line 3 ($108,000) by line 4 ($27,750) to get

389%.

Line 7. They enter their applicable figure of 0.0823 from

Table 2 in the Instructions for Form 8962. According to the

fourth column of Table 2, 0.0823 is the applicable figure if

the amount on line 5 is 389%.

Line 8a. They multiply line 3 ($108,000) by line 7

(0.0823) and enter the result, $8,888.

Line 8b. They divide line 8a ($8,888) by 12.0 and enter

the result, $741.

Line 9. Paulette and Quentin read the instructions for

line 9, which explain that because they got married in

2023, they may be eligible to complete Part V (not illustra-

ted) to elect the alternative calculation for year of mar-

riage. This calculation may reduce the amount of excess

APTC they would otherwise have to repay.

The preliminary steps in determining whether they may

be eligible are to complete Table 4 and Worksheet 3 in the

Form 8962 instructions. (Both the table and worksheet for

Paulette and Quentin are not illustrated.) Worksheet 3

would show that if Paulette and Quentin do not elect the

alternative calculation, their total PTC will be $5,805

(line 13, column (e)). The excess APTC they will have to

pay with their tax return is $2,618, which is the difference

between $8,423 (APTC for the year on line 13, column (f))

and $5,805.

Because Paulette and Quentin checked the “Yes” box

on line 14 of Worksheet 3, they complete Worksheets I

through V (not illustrated) to determine if the alternative

calculation for year of marriage will benefit them. They

complete Worksheets I through V before they check any

of the boxes on line 9. As explained under Step 5 (Work-

sheet V), later, they qualify for the alternative calculation

for year of marriage and check “Yes” on line 9.

Line 10. As explained under Step 5 (Worksheet V), later,

they check “No” on line 10.

Line 11. Because Paulette and Quentin checked “No” on

line 10, they skip line 11 and complete lines 12 through 23

to figure their monthly PTC.

Step 1 (Paulette's Worksheet I)

Line 1. They enter “1” as Paulette’s alternative family size

because she can include only herself. She can’t include

either of Quentin’s children in her alternative family size

because neither of them lived with her for more than half

of 2023 and she could not claim them as dependents.

Lines 2 through 9. They complete these lines according

to the instructions on the worksheet.

Step 2 (Paulette's Worksheet II)

They complete Worksheet II only for January through July

(the month Paulette and Quentin got married). They com-

plete columns A and B using the amounts shown on Pau-

lette’s Form 1095-A. They complete columns C and D ac-

cording to the instructions shown on the worksheet.

Step 3 (Quentin's Worksheet III)

Line 1. They enter “3” as Quentin's alternative family size

consisting of Quentin and his two dependent children.

Lines 2 through 9. They complete these lines according

to the instructions on the worksheet.

Step 4 (Quentin's Worksheet IV)

They complete Worksheet IV only for January through July

(the month Paulette and Quentin got married). They com-

plete columns A and B using the amounts shown on

Quentin’s Form 1095-A. They complete columns C and D

according to the instructions shown on the worksheet.

Step 5 (Worksheet V)

Quentin and Paulette complete Worksheet V only for the

months they have entries in column E of Worksheets II

and IV (January through July). They qualify for the alterna-

tive calculation for year of marriage because line 13, col-

umn A ($5,152), is more than line 13, column B ($3,675).

Accordingly, they check “Yes” on line 14. They also check

“Yes” on Form 8962, line 9; check “No” on line 10; and

continue to Steps 6, 7, and 8 in this publication.

Step 6

Paulette and Quentin complete lines 35 and 36 as ex-

plained below.

Line 35.

•

Column (a): They enter “1,” Paulette's alternative fam-

ily size from Worksheet I, line 1.

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•

Column (b): They enter $379, Paulette's alternative

monthly contribution amount from Worksheet I, line 7.

•

Column (c): They enter “01,” the alternative start

month from Worksheet I, line 8.

•

Column (d): They enter “07,” the alternative stop

month from Worksheet I, line 9.

Line 36.

•

Column (a): They enter “3,” Quentin's alternative fam-

ily size from Worksheet III, line 1.

•

Column (b): They enter $151, Quentin's alternative

monthly contribution amount from Worksheet III,

line 7.

•

Column (c): They enter “01,” the alternative start

month from Worksheet III, line 8.

•

Column (d): They enter “07,” the alternative stop

month from Worksheet III, line 9.

Step 7

Paulette and Quentin complete lines 12 through 23 as

explained below.

Column (a). On lines 12 through 18, they enter $1,500

and $1,350 on lines 19 through 23, the monthly amounts

from column (a) of Worksheet 3 (not illustrated).

Column (b). On lines 12 through 18, they enter $1,266

and $1,167 on lines 19 through 23, the monthly amounts

from column (b) of Worksheet 3.

Column (c). On lines 12 through 18, they enter $530, the

monthly totals from Worksheet II, column C, and Work-

sheet IV, column C. On lines 19 through 23, they enter

$741, the amount from Form 8962, line 8b.

Column (d). They enter the difference between columns

Column (e). On lines 12 through 18, they enter $736, the

monthly amounts from column A of Worksheet V. On lines

19 through 23, they enter $426, the smaller of column (a)

or (d).

Column (f). On lines 12 through 18, they enter $794 and

$573 on lines 19 through 23, the monthly amounts from

column (f) of Worksheet 3.

Step 8

Paulette and Quentin complete lines 24 through 29 as ex-

plained below.

Line 24. They add the amounts on lines 12 through 23,

column (e), and enter the total, $7,282. (As explained ear-

lier under Line 9, their total PTC would be only $5,805 if

they did not elect the alternative calculation.)

Line 25. They add the amounts on lines 12 through 23,

column (f), and enter the total, $8,423.

Line 26. According to Step 8, they enter -0- because they

elected the alternative calculation for year of marriage.

Line 27. They subtract line 24 from line 25 and enter the

difference, $1,141.

Line 28. They enter the repayment limitation of $3,000

from Table 5 in the Form 8962 instructions.

Line 29. They enter $1,141. This is the smaller of line 27

or line 28. They also enter $1,141 on Schedule 2 (Form

1040), line 2 (non illustrated). (As explained earlier under

Line 9, the excess APTC they would have to pay would be

$2,618 if they did not elect the alternative calculation.)

46 Publication 974 (2023)

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Self-Employed Health

Insurance Deduction and PTC

This part provides special instructions for figuring the

self-employed health insurance deduction and PTC if you

or your spouse was self-employed, you or a member of

your tax family was enrolled in a qualified health plan in

2023, and you may be eligible for the PTC. Because the

amount of the self-employed health insurance deduction

may affect the amount of the PTC, and the amount of the

PTC may affect the amount of the deduction, a taxpayer

who may be eligible for both may have difficulty determin-

ing the amounts of those items. A taxpayer who may be el-

igible for both may follow the instructions in this part to de-

termine amounts of the self-employed health insurance

deduction and PTC that are allowable under the law.

Using the special instructions in this part is op-

tional. If you are eligible for both a self-employed

health insurance deduction and the PTC for the

same premiums, you may use any computation method

that results in reporting amounts that satisfy the rules for

both the deduction and PTC, as long as the sum of the de-

duction claimed for the premiums and the PTC computed,

taking the deduction into account, is less than or equal to

the enrollment premiums.

Before you complete any of the worksheets in this part,

you should first do the following.

•

Read the instructions for line 17 of Schedule 1 (Form

1040) to find out if you meet the requirements for

claiming the self-employed health insurance deduc-

tion.

•

Read the Instructions for Form 8962 to find out if you

meet the requirements for claiming the PTC except for

the requirement that your household income be at

least 100% of the federal poverty line for your family

size for 2023. You will determine whether you meet the

100% requirement in the process of completing these

instructions.

CAUTION

If you meet the requirements described above, do the

following.

•

If you are filing Schedule 1 (Form 1040), complete

lines 18 (Penalty on early withdrawal of savings) and

19a (Alimony paid). Also, figure any write-in adjust-

ments you will enter on the dotted line next to line 26.

•

Complete line 20 of Schedule 1 (Form 1040) if you

made contributions to a traditional individual retire-

ment arrangement (IRA) and you (and your spouse if

filing a joint return) were not covered by a retirement

plan at work or through self-employment.

•

If you elect to report your child’s interest and dividends

on your tax return, complete Form 8814, Parents’

Election To Report Child’s Interest and Dividends.

Using this information, do the following.

1. If you have health insurance premiums for which you

cannot claim the PTC (see Nonspecified premiums,

later), first complete Worksheet P or, if required, Form

7206 but only with respect to those premiums. Skip

Worksheets W and X if either of the following applies.

a. You completed Worksheet P and line 2 is less than

or equal to line 1.

b. You completed Form 7206 and line 13 is equal to

or less than line 3.

2. Then, complete Worksheet W and Worksheet X. You

have to complete Worksheet X only if APTC was paid

to your insurer on your behalf for the months you were

self-employed. If APTC was not paid to your insurer

on your behalf for the months you were self-em-

ployed, skip Worksheet X.

3. After completing Worksheets W and X, you may

choose to use either the Simplified Calculation

Method or the Iterative Calculation Method to com-

pute your self-employed health insurance deduction

and PTC. The Simplified Calculation Method is

shorter, but in some cases will not produce a result as

favorable as the Iterative Calculation Method.

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Instructions for Worksheet P

Use Worksheet P to figure the amount you can deduct for

nonspecified premiums.

Exceptions. Use Form 7206 instead of Worksheet P to

figure your deduction for nonspecified premiums if any of

the following apply. (Only include nonspecified premiums

on line 1 or 2 of Form 7206.)

•

You had more than one source of income subject to

self-employment tax.

•

You file Form 2555.

•

You are using amounts paid for qualified long-term

care insurance to figure the deduction.

After you complete Form 7206, follow the instructions

below.

•

If line 13 is equal to or less than line 3, stop here. Do

not read the rest of these special instructions. Enter

the amount from line 14 of Form 7206 on line 17 of

Schedule 1 (Form 1040). Use Form 8962 to figure the

PTC for specified premiums.

•

If line 13 is more than line 3, complete Worksheet W.

Also complete Worksheet X if APTC was paid to your

insurer on your behalf for the months you were

self-employed. If APTC was not paid to your insurer on

your behalf for the months you were self-employed,

skip Worksheet X.

Nonspecified Premiums

A nonspecified premium is either of the following.

•

A premium for health insurance coverage established

under your business (or the S corporation in which you

were a more-than-2% shareholder) but paid for cover-

age in a plan that is not a qualified health plan.

•

The portion of the premium for coverage in a plan that

is a qualified health plan established under your busi-

ness (or the S corporation in which you were a

more-than-2% shareholder) but that is attributable to

individuals not in your coverage family.

Calculate how much of these nonspecified premiums

are fully deductible by entering this amount on line 1 of

Worksheet P or, if required, on line 1 or 2 of Form 7206.

Complete the remainder of the appropriate worksheet.

The following are examples of nonspecified premiums.

•

Premiums paid for a qualified health plan other than

during a coverage month.

Worksheet P. Self-Employed Health Insurance Deduction for

Nonspecified Premiums Keep for Your Records

Before you begin:

Read Exceptions, later, to see if you can use this worksheet instead of Form 7206 to figure your deduction

for nonspecified premiums. Also read the definitions of specified premiums and nonspecified premiums.

1. Enter the total amount of nonspecified premiums paid in 2023 for health insurance coverage

established under your business (or the S corporation in which you were a more-than-2%

shareholder) for 2023 for you, your spouse, and your dependents. Your insurance can also

cover your child who was under age 27 at the end of 2023, even if the child was not your

dependent. But do not include amounts for any month you were eligible to participate in an

employer-sponsored health plan or amounts paid from retirement plan distributions that were

nontaxable because you are a retired public safety officer ............................. 1.

2. Enter your net profit* and any other earned income** from the business under which the

insurance plan is established, minus any deductions on lines 15 and 16 of Schedule 1 (Form

1040). Do not include Conservation Reserve Program payments exempt from

self-employment tax ............................................................ 2.

3. Self-employed health insurance deduction for nonspecified premiums. Enter the

smaller of line 1 or line 2. Do not include this amount in figuring any medical expense

deduction on Schedule A (Form 1040) ............................................. 3.

•

If line 2 is equal to or less than line 1, stop here. Do not read the rest of these special

instructions. Enter this amount on line 17 of Schedule 1 (Form 1040). Use Form 8962 to

figure the PTC for specified premiums.

•

If line 2 is more than line 1, complete Worksheet W. Also complete Worksheet X if APTC

was paid to your insurer on your behalf for the months you were self-employed. If APTC

was not paid to your insurer on your behalf for the months you were self-employed, skip

Worksheet X.

* If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the

amount from Schedule SE, line 4b.

** Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it does not

include capital gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is

established, earned income is your Medicare wages (box 5 of Form W-2) from that corporation.

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•

Premiums paid to cover an individual other than you,

your spouse, or your dependents.

•

Premiums for qualified long-term care insurance.

•

Dental insurance premiums.

•

Medicare premiums you voluntarily paid to obtain in-

surance in your name that is similar to qualifying

health insurance.

Example. In 2023, you were self-employed and were

enrolled in a qualified health plan through the Market-

place. You enrolled your dependent, 22-year-old daughter

in individual market coverage not offered through the Mar-

ketplace. This coverage has an annual premium of

$3,000. This $3,000 premium is a nonspecified premium

because it is for coverage under a plan that is not a quali-

fied health plan. Include this $3,000 premium on Work-

sheet P, line 1, or, if required, on line 1 of Form 7206.

Specified Premiums

Specified premiums are the premiums for a specified

qualified health plan or plans for which you may otherwise

claim as a self-employed health insurance deduction on

line 17 of Schedule 1 (Form 1040). Generally, these are

the premiums paid for the months you were self-em-

ployed. If you were self-employed for part of a month, the

entire premium for that month is a specified premium. A

specified qualified health plan is a qualified health plan

that covers one or more members of your coverage family

for a month for which your enrollment premium(s) has

been paid by the due date prescribed under Enrollment

premiums, earlier. Qualified health plan, coverage family,

and enrollment premiums are defined earlier under Terms

You May Need To Know.

Example. You were enrolled in a qualified health plan

through the Marketplace for all of 2023 and you were

self-employed from September 15 through December 31.

Only the premiums for the last 4 months are specified pre-

miums and only those premiums are entered on Work-

sheet W, line 1, and Worksheet X, line 27, if you are re-

quired to complete those worksheets. You are not allowed

a self-employed health insurance deduction for the Janu-

ary through August premiums because you were not

self-employed during those months. Those premiums are

neither specified premiums nor nonspecified premiums.

However, you may be allowed a PTC for your coverage for

January through August.

Plan covering individuals in another tax family. If the

plan covers at least one individual in your tax family and

one individual in another tax family, you may have to allo-

cate policy amounts between your tax family and the other

tax family. See Line 9 in the Form 8962 instructions for in-

structions on how to allocate policy amounts. Do this allo-

cation before you determine the portion of the specified

premiums allocable to your coverage family discussed

next.

Plan covering individuals not in your coverage family.

If the plan covers individuals who are not in your coverage

family, use only the portion of the premiums for the speci-

fied qualified health plan that is allocable to your coverage

family. You determine the specified premiums that are allo-

cable to your coverage family by multiplying the enrollment

premiums for the months you were self-employed and the

plan covered non-coverage family members by a fraction.

The numerator of the fraction is the premium for the appli-

cable SLCSP for your coverage family. The denominator

of the fraction is the total of (a) the premium for the appli-

cable SLCSP for your coverage family, and (b) the pre-

mium for the applicable SLCSP for the individuals who are

not in your coverage family.

Example. Gary was self-employed in 2023 and enrol-

led in a qualified health plan. APTC was paid to his insurer

on his behalf. The policy covers Gary, Gary's wife Sue,

and Gary’s two dependent daughters. Sue is not in the

coverage family because she is eligible to enroll in her em-

ployer’s health insurance. The enrollment premium is

$15,000. The premium for the applicable SLCSP covering

Gary and his two daughters is $12,000 and the premium

for the applicable SLCSP covering Sue is $6,000. Gary

figures the amount of specified premiums by multiplying

the $15,000 enrollment premium by a fraction. The numer-

ator of the fraction is the premium for his applicable

SLCSP ($12,000). The denominator of the fraction is the

total of the premiums for the applicable SLCSP of both

Gary and Sue ($18,000). The result is $10,000 ($15,000

enrollment premium x ($12,000/$18,000)) of specified

premiums, which Gary enters on Worksheet W, line 1, and

Worksheet X, line 27. The remaining $5,000 of enrollment

premium ($15,000 enrollment premium – $10,000 speci-

fied premiums) is attributable to Sue's coverage and is a

nonspecified premium that Gary enters on Worksheet P,

line 1.

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Worksheet W. Figuring the Limit on the Self-Employed

Health Insurance Deduction for Specified Premiums Keep for Your Records

Caution. If you have more than one trade or business under which a qualified health plan is established, complete lines 4

through 13 separately for each trade or business. Add the amounts on line 13 for all the trades or businesses. Then,

complete lines 14 through 17 once for all trades or businesses.

1. Enter your specified premiums. See Specified Premiums under Instructions for Worksheet

P, earlier ......................................................................... 1.

2. Enter the APTC from Form 1095-A, Part III, column C, that is attributable to the premiums on

line 1 ............................................................................ 2.

3. Subtract line 2 from line 1 ...........................................................

4. Enter your net profit* and any other earned income** from the business under which the qualified

health plan is established. Do not include Conservation Reserve Program payments exempt from

self-employment tax. If the business is an S corporation, skip to line 11 ...................... 4.

5. Enter the total of all net profits* from Schedule C (Form 1040), line 31; Schedule F (Form 1040),

line 34; or box 14, code A, of Schedule K-1 (Form 1065), plus any other income allocable to the

profitable businesses. Do not include Conservation Reserve Program payments exempt from

self-employment tax. See the Instructions for Schedule SE (Form 1040). Do not include any net

losses shown on these schedules .................................................... 5.

6. Divide line 4 by line 5 .............................................................. 6.

7. Multiply line 15 of Schedule 1 (Form 1040) by line 6 ...................................... 7.

8. Subtract line 7 from line 4 ........................................................... 8.

9. Enter the amount, if any, from line 16 of Schedule 1 (Form 1040) attributable to the same business

for which the qualified health plan is established ......................................... 9.

10.

Subtract line 9 from line 8 ........................................................... 10.

11. Enter your Medicare wages (box 5 of Form W-2) from an S corporation in which you are a

more-than-2% shareholder and in which the qualified health plan is established ............... 11.

12. Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or line 11

above ........................................................................... 12.

Note. If you are not filing Form 2555, enter -0-.

13.

Subtract line 12 from line 10 or 11, whichever applies .................................... 13.

14. Enter your self-employed health insurance deduction for nonspecified premiums from Worksheet

P, line 3, or Form 7206, line 14 ....................................................... 14.

15. Subtract line 14 from line 13 ......................................................... 15.

16. Enter the smaller of line 3 or line 15 ................................................... 16.

17. Add lines 14 and 16 ................................................................ 17.

18. Is line 2 blank or -0-? ............................................................... 18.

Yes. Skip line 19 and Worksheet X. Use one of the methods that follow Worksheet X to figure

the PTC and self-employed health insurance deduction for specified premiums.

No. Go to line 19.

19. Subtract line 16 from line 15. Then, go to Worksheet X ................................... 19.

* If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the

business. Instead, enter the amount attributable to that business from Schedule SE, line 4b.

** Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it does not include

capital gain income.

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Instructions for Worksheet X

Line 1. If you are filing Form 8582, Passive Activity Loss

Limitations, and both lines 1d and 3 of that form are los-

ses:

•

Do not complete Part II or III of that form until you are

instructed to do so later, and

•

Do not include any losses from rental real estate activ-

ities on line 1.

If you are filing Form 8814, and the amount on Form

8814, line 4, is more than $1,250, you must also include

the following amounts on line 1.

•

The tax-exempt interest from Form 8814, line 1b.

•

The lesser of Form 8814, line 4 or line 5.

•

Any nontaxable social security benefits your child re-

ceived.

If you are filing Form 8815, Exclusion of Interest From

Series EE and I U.S. Savings Bonds Issued After 1989, do

not complete the form until you are instructed to do so

later. Include on line 1 the amount from Schedule B (Form

1040), line 2.

Line 4. Include your IRA deduction on line 4 only if you

(and your spouse if filing a joint return) were not covered

by a retirement plan at work or through self-employment.

Line 25. Also enter this amount on line 28 of the Form

8962 you attach to your tax return if you are required to

complete that line and you do not complete Worksheet Y.

Do not enter an amount from Table 5 in the Form 8962 in-

structions.

Worksheet X. Figuring Household Income and the

Repayment Limitation Keep for Your Records

Complete this worksheet only if APTC was paid to your insurer on your behalf for the months you were self-employed.

Part I: Taxpayer's Modified AGI

1. Combine the amounts from:

•

Form 1040, 1040-SR, or 1040-NR, lines 2a, 9, and the excess, if any, of line 6a over

line 6b ................................... ................................... 1.

Note. See the instructions if you are filing Form 8582, 8814, or 8815.

2. Enter any amounts from Form 2555, lines 45 and 50 .................................... 2.

3. Add lines 1 and 2 ................................................................. 3.

4. Enter the total of the amounts from:

•

Schedule 1 (Form 1040), lines 11 through 16, 18, and 19a, plus any write-in adjustments

you entered on the dotted line next to Schedule 1 (Form 1040), line 26 .................. 4.

Note. See the instructions if you made contributions to a traditional IRA.

Enter the amount from Worksheet W, line 14 ........................................... 5.

Enter the amount from Worksheet W, line 16 ........................................... 6.

7. Add lines 4, 5, and 6 ............................................................... 7.

8. Subtract line 7 from line 3. Then, go to Part II if you are claiming dependents on your tax return. If

you are not claiming any dependents on your tax return, skip Part II and go to Part III .......... 8.

Part II: Dependents’ Modified AGI

Note. Use Part II to figure the combined modified AGI for the dependents you included in your tax family. Only include the modified

AGI of those dependents who are required to file a return. 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.

9. Enter the combined AGI for your dependents from Form 1040, 1040-SR, or 1040-NR,

line 11 .......................................................................... 9.

10. Enter any tax-exempt interest for your dependents from Form 1040, 1040-SR, or 1040-NR,

line 2a .......................................................................... 10.

11.

Enter any amounts for your dependents from Form 2555, lines 45 and 50 ................... 11.

12. Enter for each of your dependents the excess, if any, of Form 1040 or 1040-SR, line 6a, over

line 6b .......................................................................... 12.

13.

Add lines 9 through 12. Then, go to Part III ............................................ 13.

Continued on next page

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Iterative Calculation Method

Follow the steps below to figure your self-employed health

insurance deduction and PTC under the Iterative Calcula-

tion Method. You do not have to use this method. You can

use the Simplified Calculation Method (discussed later) or

any computation method that satisfies each set of rules as

long as the sum of the deduction claimed for the premi-

ums and the PTC computed, taking the deduction into ac-

count, is less than or equal to the premiums.

Do not round to whole dollars when performing

the computations under this method. Instead, use

dollars and cents. This is necessary so you can

complete Step 6.

CAUTION

Step 1

Figure your AGI, modified AGI, and household income us-

ing Worksheet X, line 31, as your self-employed health in-

surance deduction. If you did not fill out Worksheet X, use

the amount from Worksheet W, line 17. Use Worksheets

1-1 and 1-2 in the Form 8962 instructions to figure modi-

fied AGI and household income.

If you are claiming any of the following deductions

or exclusions, see Special Instructions for

Self-Employed Individuals Who Claim Certain De-

ductions/Exclusions, later, before you complete Step 1.

1. Passive activity losses from rental real estate activities

and lines 1d and 3 of Form 8582 are losses.

2. IRA deduction and you (or your spouse if filing a joint

return) were covered by a retirement plan at work or

through self-employment.

CAUTION

Worksheet X. Figuring Household Income and the

Repayment Limitation (continued) Keep for Your Records

Part III: Repayment Limitation

14. Household income. Add lines 8 and 13 ............................................... 14.

15. Enter the smaller of Worksheet W, line 19, or $700 ($350 if your filing status is single) ......... 15.

16. Subtract line 15 from line 14. If zero or less, enter -0- .................................... 16.

17a. Enter the number of qualifying individuals in your tax family

(including yourself) ....................................... 17a.

17b. Enter the federal poverty line amount as determined by the family size on line 17a and federal

poverty Table 1-1, 1-2, or 1-3 for your state of residence during 2023 in the Form 8962

instructions ...................................................................... 17b.

18. Divide line 16 by line 17b. If the result is not a whole percentage, do not round; instead, multiply

this number by 100 (to express it as a percentage) and then drop any numbers after the decimal

point. 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 ....................................................... 18.

•

If the result is less than 200, enter $700 ($350 if your filing status is single) on line 25. Skip

lines 19 through 24.

•

If the result is 200 or more, go to line 19.

19. Enter the smaller of Worksheet W, line 19, or $1,800 ($900 if your filing status is single) ....... 19.

20. Subtract line 19 from line 14. If zero or less, enter -0- .................................... 20.

21. Divide line 20 by line 17b. If the result is not a whole percentage, do not round; instead, multiply

this number by 100 (to express it as a percentage) and then drop any numbers after the decimal

point. 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 ....................................................... 21.

•

If the result is less than 300, enter $1,800 ($900 if your filing status is single) on line 25. Skip

lines 22 through 24.

•

If the result is 300 or more, go to line 22.

22. Enter the smaller of Worksheet W, line 19, or $3,000 ($1,500 if your filing status is single) ...... 22.

23. Subtract line 22 from line 14. If zero or less, enter -0- .................................... 23.

24. Divide line 23 by line 17b. If the result is not a whole percentage, do not round; instead, multiply

this number by 100 (to express it as a percentage) and then drop any numbers after the decimal

point. 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 ....................................................... 24.

•

If the result is less than 400, enter $3,000 ($1,500 if your filing status is single) on line 25.

•

If the result is 400 or more, enter the amount from Worksheet W, line 2, on line 25.

25. Enter the amount you were instructed to enter here by line 18, 21, or 24. See instructions ...... 25.

Part IV: Maximum Self-Employed Health Insurance Deduction

26.

Add lines 6 and 25 ................................................................ 26.

27.

Enter the amount from Worksheet W, line 1 ........................................... 27.

28.

Enter the smaller of line 26 or line 27 ................................................. 28.

29.

Enter the amount from Worksheet W, line 15 ........................................... 29.

30.

Enter the smaller of line 28 or line 29 ................................................. 30.

31. Add lines 5 and 30. Then, use one of the methods that follow to figure the PTC and the

self-employed health insurance deduction for specified premiums ......................... 31.

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3. Exclusion of interest from series EE and I U.S. savings

bonds issued after 1989.

4. Student loan interest deduction.

Step 2

Figure the total PTC on Form 8962 using the AGI, modi-

fied AGI, and household income you determined in Step

1. Enter the modified AGI and household income from

Step 1 on the Form 8962. When figuring the PTC, use all

enrollment premiums for qualified health plans in which

you or an individual in your tax family enrolled. Complete

this Form 8962 only through line 24. Do not attach this

Form 8962 to your tax return.

Cannot take the PTC. If you are not eligible to take the

PTC, stop here. Do not use this method. Instead, figure

your self-employed health insurance deduction using the

Self-Employed Health Insurance Deduction Worksheet in

the Instructions for Form 1040 or the Instructions for Form

1040-NR; or, if required, Form 7206. If you are following

the instructions under Special Instructions for Self-Em-

ployed Individuals Who Claim Certain Deductions/Exclu-

sions, later, make this determination when you complete

the final iteration of Step 2. Refigure the deductions/exclu-

sions if you are not eligible for the PTC.

Step 3

Figure your self-employed health insurance deduction for

specified premiums by completing the following work-

sheet.

If you have more than one trade or business un-

der which you established a qualified health plan,

see More than one trade or business below be-

fore you complete the Step 3 Worksheet.

Step 3 Worksheet

Enter amounts in dollars and cents. Do not round to whole

dollars.

CAUTION

1. Enter the amount from Worksheet

W, line 1 .......................

Caution. If the amounts on lines 12 through

23, column (e), of your Step 2 Form 8962 are

not the same for each month and you had

specified premiums for less than 12 months,

skip lines 2 through 5 below and enter on

line 6 the total of those column (e) amounts

for the months you paid specified premiums.

2. Enter the total PTC (Form 8962, line 24) you

figured in Step 2, earlier .............

3. Enter the number of months in 2023 for

which specified premiums were paid .....

Note. Self-employment for part of a month

counts as a full month of self-employment.

4. Enter the number of months someone in your

coverage family was enrolled in the qualified

health plan ......................

5. Divide line 3 by line 4 ...............

6. Multiply line 5 by line 2 ..............

7. Subtract line 6 from line 1 ............

8. Enter the amount from Worksheet X, line 30.

If you did not complete Worksheet X, enter

the amount from Worksheet W, line 16 ....

9. Enter the smaller of line 7 or line 8. Then, go

to Step 4 next ....................

More than one trade or business. If you have more

than one trade or business under which you established a

qualified health plan, you must complete lines 1 through 7

separately for each trade or business. Use the following

instructions to complete the Step 3 Worksheet.

Line 1. Enter the amounts for the separate trade or

business.

If the Caution under line 1 applies to you, skip lines 2

through 5. Enter on line 6 the total of the column (e)

amounts for the months you paid specified premiums that

are allocable to the specified premiums you entered on

line 1 for the separate trade or business. You can allocate

the column (e) amounts using any reasonable method.

One reasonable method is based on enrollment premiums

for each plan. Under this method, multiply the total of the

column (e) amounts for the months you paid specified pre-

miums by a fraction. The numerator of the fraction is the

amount of specified premiums you entered on line 1 for

the separate trade or business. The denominator of the

fraction is the total of the column (a) amounts for the

months you paid specified premiums.

Line 2. Enter the Step 2 PTC that is allocable to the

specified premiums you entered on line 1 for the separate

trade or business. You can allocate the Step 2 PTC using

any reasonable method. One reasonable method is based

on enrollment premiums for each plan. Under this method,

multiply the Step 2 PTC by a fraction. The numerator of

the fraction is the amount of specified premiums you en-

tered on line 1 for the separate trade or business. The de-

nominator of the fraction is the amount on line 11, column

(a), or the total of lines 12 through 23, column (a), of the

Step 2 Form 8962.

Lines 3 through 6. Complete these lines for the plan

established under the separate trade or business.

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Line 7. After you complete this line for each trade or

business, add the amounts on line 7 for all the trades or

businesses. Use the total of the line 7 amounts to com-

plete lines 8 and 9.

Lines 8 and 9. Complete these lines once for all

trades or businesses.

Step 4

Refigure the total PTC on another Form 8962. Complete

this Form 8962 through line 29. When refiguring the total

PTC, use all enrollment premiums for qualified health

plans in which you or any individual in your tax family en-

rolled. Determine AGI, modified AGI, and household in-

come using the total of the Step 3 Worksheet, line 9, and

Worksheet W, line 14, as your self-employed health insur-

ance deduction. Use Worksheets 1-1 and 1-2 in the Form

8962 instructions to figure modified AGI and household in-

come.

Step 5

Refigure your self-employed health insurance deduction

for specified premiums by completing the Step 5 Work-

sheet.

If you have more than one trade or business un-

der which you established a qualified health plan,

see More than one trade or business, later, before

you complete the Step 5 Worksheet.

Step 5 Worksheet

Enter amounts in dollars and cents. Do not round to whole

dollars.

Enter the amount from line 1 of the Step

3 Worksheet .....................

Caution. If you skipped lines 2 through 5 of

the Step 3 Worksheet, skip lines 2 and 3

below and enter on line 4 the total of the

column (e) amounts from your Step 4 Form

8962 for the months you paid specified

premiums.

Enter the total PTC (Form 8962, line 24) you

figured in Step 4, earlier .............

Enter the amount from line 5 of the Step

3 Worksheet .....................

Multiply line 3 by line 2 ..............

Subtract line 4 from line 1 .............

Enter the amount from Worksheet X, line 30.

If you did not complete Worksheet X, enter

the amount from Worksheet W, line 16 ....

Enter the smaller of line 5 or line 6. Then, go

to Step 6 next ....................

More than one trade or business. If you have more

than one trade or business under which you established a

qualified health plan, you must complete lines 1 through 5

separately for each trade or business. Use the following

instructions to complete the Step 5 Worksheet.

CAUTION

Line 1. Enter the amount from the Step 3 Worksheet

for the same separate trade or business for which you are

completing the Step 5 Worksheet.

If the Caution under line 1 applies to you, skip lines 2

and 3. Enter on line 4 the total of the column (e) amounts

for the months you paid specified premiums that are allo-

cable to the specified premiums you entered on line 1 for

the separate trade or business. Allocate the column (e)

amounts using the same method you used on the Step 3

Worksheet.

Line 2. Enter the Step 4 PTC that is allocable to the

premiums you entered on line 1 for the separate trade or

business. Use the same allocation method you used on

the Step 3 Worksheet.

Line 3. Enter the amount from the Step 3 Worksheet

for the same separate trade or business for which you are

completing the Step 5 Worksheet.

Line 5. After you complete this line for each trade or

business, add the amounts on line 5 for all the trades or

businesses. Use the total of the line 5 amounts to com-

plete lines 6 and 7.

Lines 6 and 7. Complete these lines once for all

trades or businesses.

Step 6

Answer the following three questions.

1. Is the change in the self-employed health insurance

deduction from Step 3 to Step 5 less than $1.00?

Yes No

2. Is the change in the total PTC from Step 2 to Step 4

less than $1.00?

Yes No

3. Did you answer “Yes” to both questions 1 and 2?

Yes. You can claim a PTC for the amount you fig-

ured in Step 4. Attach the Form 8962 you used in Step

4 to your tax return. You can claim a self-employed

health insurance deduction for the specified premi-

ums equal to the amount on line 7 of the Step 5 Work-

sheet.

Note. Your self-employed health insurance deduction

is the total of the Step 5 Worksheet, line 7, and Work-

sheet W, line 14. Enter this total on line 17 of Sched-

ule 1 (Form 1040).

No. Repeat Step 4 and Step 5 (using amounts de-

termined in the immediately preceding step) until

changes in both the self-employed health insurance

deduction and the total PTC between steps are less

than $1.00.

If you are unable to complete Step 6 because

changes between steps are always $1.00 or

more, do not use the Iterative Calculation

Method. Instead, use the Simplified Calculation Method or

any computation method that satisfies the rules for the

self-employed health insurance deduction and PTC as

CAUTION

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long as the sum of the deduction claimed for the premi-

ums and the PTC computed, taking the deduction into ac-

count, is less than or equal to the premiums.

Simplified Calculation Method

Follow the steps below to figure your self-employed health

insurance deduction and PTC under the Simplified Calcu-

lation Method. You do not have to use this method. You

can use the Iterative Calculation Method (discussed ear-

lier) if you can complete Step 6 of that method or you can

use any computation method that satisfies each set of

rules as long as the sum of the deduction claimed for the

premiums and the PTC computed, taking the deduction

into account, is less than or equal to the premiums.

Step 1

Figure your AGI, modified AGI, and household income us-

ing Worksheet X, line 31, as your self-employed health in-

surance deduction. If you did not fill out Worksheet X, use

the amount from Worksheet W, line 17. Use Worksheets

1-1 and 1-2 in the Form 8962 instructions to figure modi-

fied AGI and household income.

If you are claiming any of the following deductions

or exclusions, see Special Instructions for

Self-Employed Individuals Who Claim Certain De-

ductions/Exclusions, later, before you complete Step 1.

1. Passive activity losses from rental real estate activities

and lines 1d and 3 of Form 8582 are losses.

2. IRA deduction and you (or your spouse if filing a joint

return) were covered by a retirement plan at work or

through self-employment.

3. Exclusion of interest from series EE and I U.S. savings

bonds issued after 1989.

4. Student loan interest deduction.

Step 2

Figure the total PTC on Form 8962 using the AGI, modi-

fied AGI, and household income you determined in Step

1. Enter the modified AGI and household income from

Step 1 on the Form 8962. When figuring the PTC, use all

enrollment premiums for qualified health plans in which

you or any individual in your tax family enrolled. Complete

this Form 8962 only through line 24. Do not attach this

Form 8962 to your tax return.

Cannot take the PTC. If you are not eligible to take the

PTC, stop here. Do not use this method. Instead, figure

your self-employed health insurance deduction using the

Self-Employed Health Insurance Deduction Worksheet in

the Instructions for Form 1040 or the Instructions for Form

1040-NR; or, if required, Form 7206. If you are following

the instructions under Special Instructions for Self-Em-

ployed Individuals Who Claim Certain Deductions/Exclu-

sions, later, make this determination when you complete

CAUTION

the final iteration of Step 2. Refigure the deductions/exclu-

sions if you are not eligible for the PTC.

Step 3

Figure your self-employed health insurance deduction by

completing the following worksheet.

If you have more than one trade or business un-

der which you established a qualified health plan,

see More than one trade or business below be-

fore you complete the Step 3 Worksheet.

Step 3 Worksheet

1. Enter the amount from Worksheet

W, line 1 ......................... 1.

Caution. If the amounts on lines 12 through

23, column (e), of your Step 2 Form 8962

are not the same for each month and you

had specified premiums for less than 12

months, skip lines 2 through 5 below and

enter on line 6 the total of those column (e)

amounts for the months you paid specified

premiums.

2. Enter the total PTC (Form 8962, line 24) you

figured in Step 2, earlier .............. 2.

3. Enter the number of months in 2023 for

which specified premiums were

paid ............................ 3.

Note. Self-employment for part of a month

counts as a full month of self-employment.

4. Enter the number of months someone in

your coverage family was enrolled in the

qualified health plan ................. 4.

5. Divide line 3 by line 4 ................ 5.

6. Multiply line 5 by line 2 ............... 6.

7. Subtract line 6 from line 1 ............. 7.

8. Enter the amount from Worksheet X,

line 30. If you did not complete Worksheet

X, enter the amount from Worksheet

W, line 16 ........................ 8.

9. Enter the smaller of line 7 or line 8 ...... 9.

10.

Enter the amount from Worksheet

W, line 14 ........................

10.

11.

Add lines 9 and 10. Use this amount as your

self-employed health insurance deduction

in Step 4 next. Also enter this amount on

line 17 of Schedule 1 (Form 1040) ......

11.

More than one trade or business. If you have more

than one trade or business under which you established a

qualified health plan, you must complete lines 1 through 7

separately for each trade or business. Use the following

instructions to complete the Step 3 Worksheet.

Line 1. Enter the amounts for the separate trade or

business.

If the Caution under line 1 applies to you, skip lines 2

through 5. Enter on line 6 the total of the column (e)

amounts for the months you paid specified premiums that

are allocable to the specified premiums you entered on

line 1 for the separate trade or business. You can allocate

the column (e) amounts using any reasonable method.

CAUTION

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One reasonable method is based on enrollment premiums

for each plan. Under this method, multiply the total of the

column (e) amounts for the months you paid specified pre-

miums by a fraction. The numerator of the fraction is the

amount of specified premiums you entered on line 1 for

the separate trade or business. The denominator of the

fraction is the total of the column (a) amounts for the

months you paid specified premiums.

Line 2. Enter the Step 2 PTC that is allocable to the

specified premiums you entered on line 1 for the separate

trade or business. You can allocate the Step 2 PTC using

any reasonable method. One reasonable method is based

on enrollment premiums for each plan. Under this method,

multiply the Step 2 PTC by a fraction. The numerator of

the fraction is the amount of specified premiums you en-

tered on line 1 for the separate trade or business. The de-

nominator of the fraction is the amount on line 11, column

(a), or the total of lines 12 through 23, column (a), of the

Step 2 Form 8962.

Lines 3 through 6. Complete these lines for the plan

established under the separate trade or business.

Line 7. After you complete this line for each trade or

business, add the amounts on line 7 for all the trades or

businesses. Use the total of the line 7 amounts to com-

plete lines 8 through 11.

Lines 8 through 11. Complete these lines once for all

trades or businesses.

Step 4

Refigure the final PTC on another Form 8962. Complete

this Form 8962 through line 29. Attach this Form 8962 to

your tax return. When refiguring the PTC, use all enroll-

ment premiums for qualified health plans in which you or

any individual in your tax family enrolled. Determine AGI,

modified AGI, and household income using the amount

from line 11 of the Step 3 Worksheet as your self-em-

ployed health insurance deduction. Use Worksheets 1-1

and 1-2 in the Form 8962 instructions to figure modified

AGI and household income.

Special Instructions for

Self-Employed Individuals Who Claim

Certain Deductions/Exclusions

The instructions in this section apply to you if you claim

any of the following deductions or exclusions.

1. Passive activity losses from rental real estate activities

and lines 1d and 3 of Form 8582 are losses.

2. IRA deduction and you (or your spouse if filing a joint

return) were covered by a retirement plan at work or

through self-employment.

3. Exclusion of interest from series EE and I U.S. savings

bonds issued after 1989.

4. Student loan interest deduction.

Read the following instructions if you are claiming one

or more of the deductions/exclusions listed above. Read

these instructions before you complete the Iterative Cal-

culation Method or Simplified Calculation Method.

1. The first time you complete the Iterative Calculation

Method or Simplified Calculation Method, you do so

without including any of the deductions/exclusions

listed above in AGI, modified AGI, or household in-

come. If you use the Simplified Calculation Method,

complete it only through Step 3. Enter “400” on the in-

terim Form 8962, line 5, if you answer “Yes” on Work-

sheet 2, line 4, in the Form 8962 instructions.

2. After you complete (1), figure the deduction/exclusion

using the appropriate form or worksheet in your tax re-

turn instructions. When figuring modified AGI on the

form or worksheet (or AGI on Form 8903), use as your

self-employed health insurance deduction the amount

from Step 6 of the Iterative Calculation Method or

Step 3 of the Simplified Calculation Method.

If you are claiming more than one deduction/exclusion

on the list, you must figure the deductions/exclusions

in the order shown in the list. For example, if you are

claiming the student loan interest deduction and the

exclusion of interest from series EE and I U.S. savings

bonds, you must figure the exclusion of interest from

series EE and I U.S. savings bonds first and complete

(3) and (4) or (5) using that exclusion. Then, you fig-

ure the student loan interest deduction, as explained

in (5) or at the end of Worksheets Y and Z.

3. Enter the deduction/exclusion you figured in (2) on

your tax return.

4. If you completed Worksheet X, complete Worksheet Y

and follow the instructions under line 22 of that work-

sheet. Skip (5).

5. If you did not complete Worksheet X, do the following.

a. Repeat the Iterative Calculation Method or Simpli-

fied Calculation Method. Use the deduction/exclu-

sion from (2) in any step that requires you to figure

AGI, modified AGI, and household income.

b. If the amount from (2) is the only deduction/exclu-

sion on the list you are claiming, complete either

method through the last step and follow the step

instructions for claiming the PTC and self-em-

ployed health insurance deduction on your return.

Skip (5c).

c. If the amount from (2) is not the only deduction/

exclusion on the list you are claiming, repeat the

Iterative Calculation Method through Step 6 or the

Simplified Calculation Method through Step 3. En-

ter “400” on the interim Form 8962, line 5, if you

answered “Yes” on Worksheet 2, line 4, in the

Form 8962 instructions. Then, figure the additional

deduction/exclusion using the appropriate form or

worksheet in your tax return instructions. When

figuring modified AGI on the form or worksheet (or

AGI on Form 8903), use as your self-employed

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health insurance deduction the amount from Step

6 of the Iterative Calculation Method or Step 3 of

the Simplified Calculation Method. Then, repeat

(3) and (5) for each additional deduction/exclu-

sion. Follow (5b) for your final deduction/exclusion.

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Worksheet Y. Refiguring Household Income and the

Repayment Limitation When Claiming Certain Deductions

or Exclusions Keep for Your Records

1. Enter the amount from Worksheet X, line 14 ............................................ 1.

2. Enter the deduction or exclusion ...................................................... 2.

3. Revised household income. Subtract line 2 from line 1 .................................... 3.

4. Enter the smaller of Worksheet W, line 19, or $700 ($350 if your filing status is single) .......... 4.

5. Subtract line 4 from line 3. If zero or less, enter -0- ....................................... 5.

6. Enter the amount from Worksheet X, line 17b ........................................... 6.

7. Divide line 5 by line 6. If the result is not a whole percentage, do not round; instead, multiply this

number by 100 (to express it as a percentage) and then drop any numbers after the decimal point.

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 .............................................................. 7.

•

If the result is less than 200, enter $700 ($350 if your filing status is single) on line 14. Skip

lines 8 through 13.

•

If the result is 200 or more, go to line 8.

8. Enter the smaller of Worksheet W, line 19, or $1,800 ($900 if your filing status is single) ........ 8.

9. Subtract line 8 from line 3. If zero or less, enter -0- ....................................... 9.

10. Divide line 9 by line 6. If the result is not a whole percentage, do not round; instead, multiply this

number by 100 (to express it as a percentage) and then drop any numbers after the decimal point.

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 .............................................................. 10.

•

If the result is less than 300, enter $1,800 ($900 if your filing status is single) on line 14. Skip

lines 11 through 13.

•

If the result is 300 or more, go to line 11.

11. Enter the smaller of Worksheet W, line 19, or $3,000 ($1,500 if your filing status is single) ...... 11.

12. Subtract line 11 from line 3. If zero or less, enter -0- ...................................... 12.

13. Divide line 12 by line 6. If the result is not a whole percentage, do not round; instead, multiply this

number by 100 (to express it as a percentage) and then drop any numbers after the decimal point.

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 .............................................................. 13.

•

If the result is less than 400, enter $3,000 ($1,500 if your filing status is single) on line 14.

•

If the result is 400 or more, enter the amount from Worksheet W, line 2, on line 14.

14. Enter the amount you were instructed to enter here by line 7, 10, or 13. Also, enter this amount on

line 28 of the Form 8962 you attach to your tax return if you are required to complete that line and

you do not complete Worksheet Z. Do not enter an amount from Table 5 in the Form 8962

instructions ....................................................................... 14.

15. Enter the amount from Worksheet X, line 6 ............................................. 15.

16. Add lines 14 and 15 ................................................................ 16.

17. Enter the amount from Worksheet X, line 27 ............................................ 17.

18. Enter the smaller of line 16 or line 17 .................................................. 18.

19. Enter the amount from Worksheet X, line 29 ............................................ 19.

20. Enter the smaller of line 18 or line 19 .................................................. 20.

21. Enter the amount from Worksheet X, line 5 ............................................. 21.

22.

Add lines 20 and 21. Then, see Next below for further instructions .......................... 22.

Next. Repeat the Iterative Calculation Method or Simplified Calculation Method, whichever applies. In Step 1 of either method, use

the amount on line 22 above as your self-employed health insurance deduction. Also, use the amount on line 2 above in any step

that requires you to figure AGI, modified AGI, and household income. If the amount on line 2 above is the only deduction/exclusion

on the list that you are claiming, complete either method through the last step. If you are claiming another deduction/exclusion on

the list, do the following.

•

When you repeat either method as explained above, complete the Iterative Calculation Method through Step 6 or complete the

Simplified Calculation Method through Step 3. Enter “400” on the interim Form 8962, line 5, if you answer “Yes” on Worksheet 2,

line 3, in the Form 8962 instructions.

•

Figure the other deduction/exclusion using the appropriate form or the worksheet provided in your tax return instructions. Use

the self-employed health insurance deduction you figured in either Step 6 of the Iterative Calculation Method or Step 3 of the

Simplified Calculation Method to figure modified AGI for the other deduction/exclusion.

•

Then, complete Worksheet Z for the other deduction/exclusion.

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Worksheet Z. Refiguring Household Income and the

Repayment Limitation When Claiming Certain Deductions

or Exclusions Keep for Your Records

Before you begin:

•

Complete Worksheet Y before you complete Worksheet Z.

1. Enter the amount from Worksheet Y, line 3 ............................................. 1.