Form 8962 Premium Tax Credit

Tax preparers must remember that if a taxpayer received an advance premium tax credit (subsidy) to help pay for their health insurance that they obtained through an Exchange, they must complete (including the reconciliation of the advance premium tax credit) and include the Form 8962 (Premium Tax Credit) with their federal return.

Form 8962 Rejections

The IRS is rejecting electronically filed federal returns if the taxpayer received a subsidy to help pay for their health insurance and their return does not include the Form 8962. The return will not be accepted until the Form 8962 is completed and included with the return. If the return is sent in on paper and it does include the Form 8962 when it should, the IRS will send the taxpayer a notice (Letter 12C) requesting the Form 8962 and the processing of the return will be delayed until the IRS receives it.

Form 1095-A

The Form 1095-A (Health Insurance Marketplace Statement) has the information (including the amount of subsidy they received) that is needed to complete the Form 8962. The Form 1095-A is sent to all individuals who obtained their insurance through an Exchange by the end of January.

For more information, see the following on the IRS website:

• Premium Tax Credit – everything you need to know about the credit and Form 8962
• Form 8962 instructions
• Reconciling Your Advance Payments of the Premium Tax Credit

CrossLink Professional Tax Software

CrossLink is the industry’s leading professional tax software solution for high-volume tax businesses. Built based on the needs of busy tax offices and mobile tax preparers that specialize in providing their taxpayer clients with fast and accurate tax returns, CrossLink has been a trusted software solution since 1989. CrossLink’s in-depth tax calculations, advanced technological features, and paperless solutions allow you to prepare the most complicated tax returns with confidence and ease while providing your customers an unparalleled experience.