Your PTC is available to help you pay only for the coverage of the individuals included in your coverage family. If you file a paper return and. According to, You and your spouse must equally allocate (50% to each spouse) certain policy amounts if, You file a return as single or head of household (see, You file a return as married filing separately due to domestic abuse or spousal abandonment (see, If Exception 1 or Exception 2 applies, follow the rules in the next paragraph. Enter the amount from line 11(f) or add lines 12(f) through 23(f) and enter the total. See, For more details on eligibility for MEC, including additional special eligibility rules, see, You must be an applicable taxpayer to take the PTC. For examples of what documentation to keep, see Pub. If you or a member of your family enrolled in health insurance coverage for 2022 through a Marketplace, you should have received Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace. Form 1095-A, Part III, column B, generally reports the applicable SLCSP premium. Because John is filing his tax return as married filing separately and no exception to the married filing jointly requirement applies, he is not an applicable taxpayer and must repay the $4,250 in APTC allocated to him, subject to the repayment limitations on line 28. More than 45 million people, or 14.5 percent of all Americans, lived below the poverty line last year, the Census Bureau reported on Tuesday. If you got married during 2022 and APTC was paid for an individual in your tax family, you may want to use the alternative calculation for year of marriage, an optional calculation that may allow you to repay less excess APTC than you would under the general rules. 1.25 b. In 2020, 17.9 million people fell below 50% of the poverty threshold (5.5% of the population), and 89.7 million people lived below the 200% poverty threshold (27.5% of the population). divide by the poverty guideline income level for your household size multiply that number by 100 add a percentage sign For example, if your income is $35,000 and you are in a three-person household, divide $35,000 by $20,780 (100 percent of FPL for a family of three in 2018), which equals about 1.68. The Marketplace should have entered the same SLCSP premium, which applies to all members of your coverage family, on each Form 1095-A. Enter the amount from line 29 on your Schedule 2 (Form 1040), line 2. By 2019, following national trends, this percentage was 7.5%. Today, 73 percent of extremely low-income renters defined as households whose incomes are at or below the poverty line or 30 percent of their area's median income pay more than half of . If you are offered an individual coverage HRA, see, Under a QSEHRA, an eligible employer can reimburse eligible employees for medical expenses, including premiums for Marketplace health insurance. If your allocation situation requires you to allocate the enrollment premiums on Form 1095-A, lines 21 through 32, column A, enter your allocation percentage for that policy in column (e). See Coverage after employment ends under Employer-Sponsored Plans in Pub. This is just one of several programs tied to the poverty level. The SLCSP premium is not the same as your enrollment premium, unless you enroll in the applicable SLCSP. Keith claims Ben and Grace as dependents and Stephanie claims Max as a dependent for 2022. If the QSEHRA was unaffordable for a month and you had to reduce the monthly PTC (but not below -0-) by the monthly permitted benefit amount, enter QSEHRA in the top margin on page 1 of Form 8962 to explain your entry and avoid delay in the processing of your return. You indicated to the Marketplace at enrollment that you would include an individual in your tax family for the year of coverage, but you are not doing so. Joe enrolls himself, Chris, and Jane in a qualified health plan for 2022. This amount is the total of your enrollment premiums for the month, including the portion paid by APTC. Applicable federal poverty line percentages. 974 for more information. Enter your allocation percentage as a decimal rounded to two places (for example, for 40%, enter 0.40). If you checked the Yes box on line 10 and you are completing line 11, do not complete lines 12 through 23. Melissa and Ryan have been married since 2020 and have no dependents. 4.0. Enter on line 2b the combined modified AGI for your dependents who are required to file an income tax return because their income meets the income tax return filing threshold. Nancy enters this amount on the applicable lines in column (b), lines 12 through 23. Don is not considered eligible for employer-sponsored coverage for the months January through August of 2022 because he gave accurate information to the Marketplace about the availability of employer coverage, and the Marketplace determined that he was eligible for APTC for coverage in a qualified health plan. Also, if you had a change in circumstances during 2022 that you did not report to the Marketplace, the SLCSP premium reported in Part III, column B, may be wrong. Gender, . If Exception 1 applies, you can file a return using head of household or single filing status and take the PTC. The line shows that the deep income poverty rate was 7.4% in 2015, and declined to 3.0% in 2020. . Enter on line 4 the amount from Table 1-1, 1-2, or 1-3 that represents the federal poverty line for your state of residence for the family size you entered on line 1 of Form 8962. 974 for information on determining the correct applicable SLCSP premium or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/. Use the amounts shown on Form 1095-A, line 33 (columns A, B, and C), for completing line 11. Use the amounts shown on Form 1095-A, line 33 (columns A, B, and C), for completing line 11. Gary and Jim must allocate the enrollment premiums of $15,000 reported on the Form 1095-A, Part III, column A, in proportion to each taxpayer's applicable SLCSP premium as follows. You do not meet the requirements under Estimated household income at least 100% of the federal poverty line if: No APTC was paid for your or your family's coverage; or. In such cases, the Form 1095-A sent by the Marketplace for the policy does not accurately reflect the members of your coverage family and the other taxpayer's coverage family. 2019 Poverty Level Charts (In Monthly Income) You can use the tables below to calculate poverty level income amounts at the poverty level or for other various percentages including 133%, 138%, 150%, 200%, 250%, 300%, and 400%. See. If you have concerns about your safety, please consider contacting the confidential 24-hour National Domestic Violence Hotline at 1-800-799-SAFE (7233), or 1-800-787-3224 (TTY), or 1-855-812-1001 (video phone, only for deaf callers). If you shared a policy with another taxpayer and you are not making an allocation in all three columns, (e), (f), and (g), leave the column blank that does not apply. Taxpayers divorced or legally separated in 2022. All the facts and circumstances are considered in determining whether an individual is abused, including the effects of alcohol or drug abuse by the victims spouse. You must repay some or all of the APTC entered on line 11, column (f). If neither exception applies, see, If this allocation situation applies, the enrollment premiums are allocated in proportion to the SLCSP premium that applies to each taxpayers coverage family. APTC is a payment during the year to your insurance provider that pays for part or all of the premiums for a qualified health plan covering you or an individual in your tax family. Otherwise, check the No box and continue to lines 12 through 23. If a -0- appears on any of lines 21 through 32, column A, of Form 1095-A, you may not have paid your enrollment premiums for the month by the due date of your return (not including extensions). Then, complete lines 28 (if it applies to you) and 29. Don provided accurate information about his employers coverage to the Marketplace, and the Marketplace determined that the offer of coverage was not affordable and that Don was eligible for APTC. Bret and Paulette each file a tax return using a filing status of single. For more details on eligibility for MEC, including additional special eligibility rules, see Minimum Essential Coverage in Pub. You and your former spouse must allocate policy amounts on your separate returns to figure your PTC and reconcile it with your APTC if both of the following apply. Your enrollment premium is reported in Part III, column A, lines 21 through 32, of Form 1095-A. Print or type your name exactly as you entered it on your tax return. To get the poverty level for larger families, add $4,720 for each additional person in the household. Calculator updated January 22, 2023 John enrolls in a silver plan. Mistakes in completing Form 8962 can cause you to pay too much tax, delay the processing of your return or refund, or cause you to receive correspondence from the IRS. See the instructions for Line 28, later. Allocation Situation 2. Other health coverage the Department of Health and Human Services designates as MEC. 974. Beginning tax year 2022, Form 8885 and its instructions have been discontinued by the IRS. Don enrolled in the qualified health plan for 2022. 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 locate his or her spouse after reasonable diligence. Under Allocation Situation 2. Check if you qualify for a Special Enrollment Period. You'll also enter your household income as a percentage of the federal poverty line. If you are claimed as a dependent on another person's tax return, the person who claims you will file Form 8962 to take the PTC and, if necessary, repay excess APTC for your coverage. If you completed Part IVAllocation of Policy Amounts for any Form 1095-A, add the amounts of applicable SLCSP premium allocated to you, if any, using the allocation percentage you entered on Form 8962, lines 30 through 33, column (f), to the applicable SLCSP premium shown on the Form(s) 1095-A that you did not allocate. Section references are to the Internal Revenue Code unless otherwise noted. If you checked the Someone can claim you as a dependent box, or if you are filing jointly and you checked the Someone can claim your spouse as a dependent box on your tax return, you or your spouse is not included in the tax family size calculation for purposes of Form 8962, line 1. Complete this part to figure the amount of excess APTC you must repay. APTC was paid on behalf of each. See Individuals Not Lawfully Present in the United States Enrolled in a Qualified Health Plan in Pub. The poverty rate for married-couple families increased from 4.0 percent in 2019 to 4.7 percent in 2020. These numbers began to be used to determine Medicaid and CHIP eligibility by the . Allocation Situation 1. You may take the PTC (and APTC may be paid) only for health insurance coverage in a qualified health plan (defined later) purchased through a Health Insurance Marketplace (Marketplace, also known as an Exchange). The law extends eligibility to taxpayers with household income above 400 percent of the federal poverty line by lowering the upper premium contribution limit to 8.5 percent of household income.