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Screen PTC - Premium Tax Credit (1040)

Form 8962 - Premium Tax Credit (PTC)

Use this screen to enter additional detail for special situations relating to Form 8692, Premium Tax Credit. If the taxpayer received a Form 1095-A, enter the information on the 1095A screen.
Form 8962, Part 4 Shared Policy Allocation can be completed from data entry in this statement, or from using the Allocation column on the 1095A screen. Do not enter the same policy in both locations. The allocation percent for the monthly premium, second lowest cost silver plan (SLCSP), and monthly advance payment must be the same for all columns if entered. An allocation percent can be entered in one column and another column can be blank if no allocation applies. Review the Form 8962 instructions for details on situations that require allocation.
UltraTax CS automatically calculates modified AGI for Form 8962. For purposes of the Premium Tax Credit, modified AGI is the sum of the following.
  • Adjusted gross income from Form 1040, line 8b
  • Tax exempt interest from Form 1040, line 2a
  • Foreign earned income exclusion from Form 2555, lines 45 and 50
  • Nontaxable Social Security benefits from Form 1040 line 5a minus line 5b
  • If Form 8814 is being filed for a dependent claimed on the tax return with line 4 greater than $1,000, include tax-exempt interest from Form 8814 line 1b plus the lesser of Form 8814 line 4 or line 5
UltraTax CS uses the state of residence entered on the 1040 screen to calculate the federal poverty level on Form 8962. If a different state of residence should be used for this calculation, enter it here.
Married filing separately taxpayers are not eligible for the Premium Tax Credit unless they:
  • lived apart from the spouse at the time of filing the tax return;
  • are unable to file a joint return because they are victim of domestic abuse or spousal abandonment.
For a married filing separately return that meets these conditions, enter
X
 in this field. UltraTax CS marks the Relief box at the top of Form 8962. This field is available only for clients with a married filing separate status which is entered on the 1040 screen in the General folder.
UltraTax CS defaults to using the repayment limitation based on the household income in the return. If a different repayment limitation should apply, enter it in this field. See Publication 974 to determine how to calculate the repayment limit for various scenarios.
Taxpayers whose household income is below 100 percent of the federal poverty level are not eligible for the Premium Tax Credit unless they meet all of the following conditions.
  • Someone in the tax family enrolled in a qualified plan through the Marketplace.
  • The Marketplace estimated at the time of enrollment that the household income would qualify for the Premium Tax Credit.
  • Advance premium tax credits were paid for one or more months in
    2024
    .
  • The taxpayer otherwise qualifies for the Premium Tax Credit.
If advance premium tax credits are entered on the 1095A screen, UltraTax CS calculates Form 8692 even if the household income is below 100 percent.
Certain aliens that are lawfully present in the United States are not eligible for Medicaid and so can also qualify for the Premium Tax Credit even if their household income is below 100 percent of the federal poverty level. Enter
X
 if this exception applies.
The Health Coverage Tax Credit (HCTC, Form 8885) and the Premium Tax Credit (PTC, Form 8962) cannot be claimed for the same coverage for the same month. Enter
X
 if all premiums entered on the 1095A and PTC screens, Shared Policy Allocation, are included in the HCTC
Qualified health insurance payments
 in the 8885 screen. UltraTax CS enters "0" on Form 8962, line 1, as indicated in the Form 8885 instructions.
UltraTax CS automatically calculates most conditions for qualifying for the Premium Tax Credit. If the taxpayer does not qualify for a reason not determined in the tax return (for example, if they are not lawfully present in the United States), mark this box to indicate the entire advance payment must be repaid.
UltraTax CS automatically calculates the percentage of Premium Tax Credit that is allocable to self-employed health insurance premiums based on the ratio of specified premiums to total premiums paid. This percentage is applied to the total Premium Tax Credit calculated on the PTC Simplified Calculation Worksheet to determine the amount to enter on line 13, Enter the total of the Column E amounts for the months you paid specified premiums. Use this field to force a difference allocation percent to calculate the PTC Simplified Calculation Worksheet line 13.
UltraTax CS automatically calculates any net marketplace premiums in excess of the calculated premium tax credit (PTC) and self-employed health insurance deduction (if applicable), including any repayment of excess advance premium tax credit (APTC). The net marketplace premiums are reported on Schedule A, Itemized Deductions, line 1,
Medical and dental expenses
. The Schedule A, Line 1 – Medical and Dental Expenses not required statement will identify the computed amount with the description Net marketplace premiums. Use this field to force a different amount from the calculated value.

Alternative Calculation for Year of Marriage

Enter the start month for the alternative calculation if using Form 8962 Part 5, Alternative Calculation for Year of Marriage. The start month is the first month before marriage in which a spouse purchased health insurance through the Marketplace. Review the Form 8962 instructions and IRS Publication 974 to determine if this is the desired treatment.
Enter the ending month for the alternative calculation if using Form 8962 Part 5, Alternative Calculation for Year of Marriage. The ending month is the month of the marriage. Review the Form 8962 instructions and IRS Publication 974 to determine if this is the desired treatment.
Enter the alternative family sizes for the alternative calculation if using Form 8962 Part 5, Alternative Calculation for Year of Marriage. These amounts are the family size of the taxpayer and spouse before marriage. Enter an amount for the taxpayer if the taxpayer had coverage through the Marketplace before marriage. Enter an amount for the spouse if the spouse had coverage through the Marketplace before marriage. Enter an amount for both taxpayer and spouse if they both had coverage through the Marketplace. Review the Form 8962 instructions and IRS Publication 974 to determine if this is the desired treatment.
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