Reminders

New employer-coverage affordability rule for family members of employees. For tax years beginning after 2022, for purposes of determining eligibility for the PTC, affordability of employer coverage for an employee’s spouse or dependents allowed to enroll in the employer coverage is no longer based on the cost of covering only the employee. Affordability of the employer coverage for these family members is now based on the employee’s cost for coverage of the employee and these other family members.

Applicable federal poverty line percentages. For tax year 2025, taxpayers with household income that exceeds 400% of the federal poverty line for their family size may be allowed a PTC.

Qualified small employer health reimbursement ar- rangement (QSEHRA). Under a QSEHRA, an eligible employer can reimburse eligible employees for medical expenses, including premiums for Marketplace health insurance. If you were covered under a QSEHRA, your employer should have reported the annual permitted benefit in box 12 of your Form W-2 with code FF. If the QSEHRA is affordable for a month, no PTC is allowed for

the month. If the QSEHRA is unaffordable for a month, you must reduce the monthly PTC (but not below -0-) by the monthly permitted benefit amount and you must enter “QSEHRA” in the top margin on page 1 of Form 8962 to explain your entry and avoid delay in the processing of your return. For more information, see Column (e) under Line 11 or Lines 12 Through 23, later. Also see Qualified Small Employer Health Reimbursement Arrangement in Pub. 974, Premium Tax Credit, for information on determining QSEHRA affordability; and Notice 2017-67 for additional guidance on QSEHRA coordination with the PTC. Notice 2017-67 is available at IRS.gov/irb/ 2017-47_IRB#NOT-2017-67 .

Report changes in circumstances when you re-enroll in coverage and during the year. If advance payment of the premium tax credit (APTC) is being paid for an individual in your tax family (described later) and you have had certain changes in circumstances (see the examples later), it is important that you report them to the Marketplace where you enrolled in coverage. Reporting changes in circumstances promptly will allow the Marketplace to adjust your APTC to reflect the PTC you are estimated to be able to take on your tax return. Adjusting your APTC when you re-enroll in coverage and during the year can help you avoid owing tax when you file your tax return. Changes that you should report to the Marketplace include the following.

• Changes in household income.

• Moving to a different address.

• Gaining or losing eligibility for other health care coverage.

• Gaining, losing, or other changes to employment.

• Birth or adoption.

• Marriage or divorce.

• Other changes affecting the composition of your tax

family.

For more information on how to report a change in circumstances to the Marketplace, go to HealthCare.gov or your State Marketplace website.

Health insurance options. If you need health coverage, go to HealthCare.gov to learn about health insurance options that are available for you and your family, how to purchase health insurance, and how you might qualify to get financial assistance with the cost of insurance.

Additional information. For additional information about the tax provisions of the Affordable Care Act (ACA), go to IRS.gov/Affordable-Care-Act/Individuals-and-Families or call the IRS Healthcare Hotline for ACA questions at 800-919-0452.

Instructions for Form 8962 (2025) Catalog Number 60401R Oct 1, 2025 Department of the Treasury Internal Revenue Service www.irs.gov