Part III: Premium Tax Credits
In this webinar, Tara Straw, Senior Health Policy Analyst at CBPP, discusses premium tax credits and the process for calculating the final credit on a tax return. Most people eligible for premium tax credits took the credit in advance and will need to reconcile the amount they received in advance with their final credit.
This is the third session in a new webinar series titled “ACA: Everything You Need to Know.” The series is designed to help VITA sites and outreach partners prepare for the tax season.
Presentation Slides
View slide deck.
Watch the Webinar
What Are Premium Tax Credits?
What are premium tax credits (PTC)?
Eligibility criteria for PTC (video)
Application process (video)
How is the PTC amount determined? (video)
– Ex: PTC varies based on the cost of the benchmark plan
How is a PTC claimed? (video)
Receiving too much or too little in advanced payments of PTC (video)
PTC at Tax Filing
Who must file form 8962
Form 8962, Part I (video)
– Family size
– Modified AGI (MAGI)
– Income based on federal poverty line (FPL)
– Annual contribution for health care
Form 8962, Part II (video)
– Line 9
– Line 10
– PTC terminology (video)
– How will a tax preparer know any of this information?
– Line 24 and 25
– Line 26
Form 8962, Part III (video)
– Repayment of PTC received in advance
Examples
Walking through new tax forms
– Example: John (single filer)
Why might the projected PTC differ from the final PTC? (video)
– Example: Income higher than initial projection (video)
– Example: Income falls under 100% FPL (video)
– Example: Dependent income (video)
– Example: Married person, separated (video)
What can a tax preparer tell a person with a repayment? (video)
Additional Resources
- Downloadable PowerPoint presentation slides | PPT slides
- ACA: Everything You Need to Know Webinar Series | Learn more
- Affordable Care Act Survival Kit | View kit
- The Tax Preparer’s Guide to the Affordable Care Act | View guide
- CBPP’s National Tax Credit Outreach Campaign | eitcoutreach.org
