Form 8962, explained in plain English

Updated November 2026

Form 8962 is where your Marketplace subsidy gets settled. During the year, the government paid an advance premium tax credit to your insurer based on the income you expected. Form 8962 recalculates the credit using your actual income and compares the two.

Part I: your household income

You enter your family size and household modified adjusted gross income (MAGI). The form converts your income into a percentage of the federal poverty line, then looks up the share of your income you are expected to contribute toward a benchmark Silver plan (the "applicable figure").

Part II: the credit you actually qualify for

Using Form 1095-A, you enter your monthly premium (column A), the benchmark Silver premium (column B), and the advance payments made for you (column C). The credit you qualify for is the benchmark premium minus your expected contribution, limited to what your plan actually cost.

Part III: repaying any excess

If the advance payments were larger than the credit you qualify for, the difference is excess advance credit, and it is added to your tax bill. For 2026, there is no longer a cap on this repayment, and income above 400% of the poverty line means no credit at all.

If you received too little

If your income came in lower than expected, the credit you qualify for can exceed what was paid in advance, and the difference increases your refund or reduces the tax you owe.

Common mistakes

• Using the income you estimated instead of your actual household income.
• Adding column B across multiple 1095-A forms (use one benchmark per month).
• Forgetting the self-employed health insurance deduction, which lowers MAGI.
• Filing separately while married, which generally makes you ineligible except in limited situations.

Related guides

This guide is general information, not tax advice. Clawback Check is not affiliated with HealthCare.gov, any state Marketplace, or the IRS.