Alternative Calculation Methods on Form 8962

Form 8962, Premium Tax Credit (PTC), contains two parts that may need to be completed in certain situations.

Part IV, Allocation of Policy Amounts – You need to allocate the enrollment premiums, SLCSP premiums, and/or the APTC on a Form 1095-A between this tax return and another tax return if:

1. The policy covered at least one individual on this tax return and at least one individual on another tax return, and
2. Either:
   1. The Form 1095-A lists someone who is not on this tax return or does not list someone who is on this tax return, or
   2. Someone on this tax return is listed on another tax return’s Form 1095-A.

If both are true, you will need to complete Part IV of Form 8962 to allocate policy amounts. See here for more information.

Part V, Alternative Calculation for Year of Marriage – If the taxpayer and spouse got married during 2019 and APTC was paid for one or both of them, you may want to use the alternative calculation for

year of marriage. This is an optional calculation that may result in a smaller repayment of excess APTC than would be calculated under the general rules. See here for more information.

If both Part IV and Part V need to be completed on a return, complete Part IV first, then complete Part V.

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To choose either of the alternative methods, from the Main Menu of the tax return (Form 1040) select:

• Payments, Estimates & EIC
• Premium Tax Credit (PTC)
• Allocating Policy Amounts with Another Taxpayer – select either or both methods as needed, then select OK.
• The Form 8962 Menu will now have a new menu item for the method(s) chosen.

Note: This is a guide to selecting one of the alternative calculation methods on Form 8962. This is not intended as tax advice. See the IRS instructions for the form for more information.

Additional Information:

IRS: Form 8962, Premium Tax Credit (PTC)

Shared Policy Allocations

Alternative Calculation For Year of Marriage