! your spouse, or with another — 2025 Inst 8962 (PDF)

CAUTION in your tax family, your coverage family and

applicable SLCSP premium may be different from the coverage family and applicable SLCSP premium the Marketplace used to determine the amount of your APTC. In that case, you must use a different applicable SLCSP premium to calculate your credit than the amount reported on Form 1095-A, Part III, column B. See Pub. 974 for information on determining the correct applicable SLCSP premium or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/.

Married filing separately (not in Exception 2—victim of domestic abuse or spousal abandonment). Enter “0.50” in column (g) of the appropriate line in Part IV to allocate the APTC. Leave columns (e) and (f) blank. You must repay the APTC allocated to you subject to the limit on line 28 because you are not an applicable taxpayer. See Example 3 and Example 4, later.

Example 1. John and Carol are married at the end of 2025 and have one child, Mark. John and Carol enrolled in a qualified health plan for 2025. The plan covered John, Carol, and Mark, with an annual premium of $14,000 and APTC of $8,500, which applied to the coverage for all of the individuals. John moved out of the residence on May 15. Carol and Mark continued to reside at the residence. John and Carol file separate returns for 2025. Carol qualifies to file her return as head of household. John files his return as married filing separately. Carol claims Mark as her dependent. Because Carol and John are not filing a joint return, they each have their own tax families, which are different from the tax family they indicated to the Marketplace they expected to have when they enrolled. Carol’s family size is two because John is not in her tax family. Carol’s federal poverty line percentage is determined using only her and Mark’s modified AGI. John’s modified AGI is not included because he is not in Carol’s tax family. According to Table 3, John and Carol follow the rules under Allocation Situation 2 , earlier.

Because John is not in Carol’s tax family, he is not in her coverage family, which consists of Carol and her dependent, Mark, for purposes of determining her applicable SLCSP premium. If neither John nor Carol notifies the Marketplace about the change in family circumstances, the Form 1095-A that Carol or John receives will report in column B the applicable SLCSP premium that covers Carol, Mark, and John, which will be incorrect. Carol looks up the SLCSP premium that applies to her and Mark.

Carol takes into account $7,000 ($14,000 x 0.50) of the premiums of the plan in which she and Mark were enrolled in figuring her PTC. Carol must then reconcile $4,250 ($8,500 x 0.50) of the APTC for her coverage. Amounts from this policy are allocated for all months Carol and John were enrolled. On her Form 8962, Part IV, line 30, Carol enters John’s SSN in column (b) and enters “0.50” in columns (e) and (g). Column (f) is left blank. Instead of allocating the applicable SLCSP premium, Carol will enter the applicable SLCSP premium that applies to her and Mark.

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Because John is filing his tax return as married filing separately and no exception to the married filing jointly requirement applies, he is not an applicable taxpayer and must repay the $4,250 in APTC allocated to him, subject to the repayment limitations on line 28. On his Form 8962, Part IV, line 30, John enters Carol’s SSN in column (b) and enters “0.50” in column (g). John leaves columns (e) and (f) blank because he is not an applicable taxpayer and cannot take the PTC.

Example 2. Kevin and Nancy are married at the end of 2025 and have no dependents. Kevin and Nancy are enrolled in a qualified health plan for 2025 with an annual premium of $10,000 and APTC of $6,500. According to Table 3, Kevin and Nancy follow the rules under Allocation Situation 2, earlier. Nancy is a victim of domestic abuse and is unable to file a joint return under the rules outlined in Exception 2 under Married taxpayers, earlier. Nancy files her return using the filing status married filing separately and checks the box on the front of Form 8962.

Nancy’s family size for 2025 is one (Nancy). Nancy is the only person in her coverage family. If neither Kevin nor Nancy notifies the Marketplace about the change in family circumstances, the Form 1095-A that Kevin or Nancy receives will report in column B the premium for the applicable SLCSP that covers Nancy and Kevin, which will be incorrect. Nancy must determine the correct premium for the applicable SLCSP covering only Nancy. Nancy looks up her correct premium for the applicable SLCSP.

Nancy’s federal poverty line percentage is determined using Nancy’s modified AGI and her family size of one. Nancy takes into account $5,000 ($10,000 x 0.50) of the enrollment premiums in figuring her PTC. Nancy must reconcile $3,250 ($6,500 x 0.50) of the APTC for her coverage. On her Form 8962, Part IV, line 30, Nancy enters Kevin’s SSN in column (b) and enters “0.50” in columns (e) and (g). Column (f) is left blank. Instead of allocating the applicable SLCSP premium, Nancy will enter the applicable SLCSP premium that applies to Nancy. Nancy enters this amount on the applicable lines in column (b) of lines 12 through 23.

Example 3. For 2025, Michael and Colleen are married with no dependents and are enrolled in a qualified health plan. APTC of $8,700 is paid for them during 2025. Michael and Colleen each file their returns for 2025 as married filing separately and Exception 2 , earlier, does not apply to either of them. According to Table 3, Michael and Colleen follow the rules under Allocation Situation 2 , earlier. Michael and Colleen are not applicable taxpayers and cannot take the PTC. They must allocate the $8,700 APTC one-half (50%) to Michael and one-half (50%) to Colleen. On her Form 8962, Part IV, line 30, Colleen enters Michael’s SSN in column (b) and enters “0.50” in column (g). On his Form 8962, Part IV, line 30, Michael enters Colleen’s SSN in column (b) and enters “0.50” in column (g).

Example 4. The facts are the same as in Example 3, except that only Colleen is covered under the policy. Because Michael and Colleen are not applicable taxpayers and cannot take the PTC, Colleen does not complete Part IV of her Form 8962. She reports all of the APTC on line 11 or lines 12 through 23, whichever applies. Michael does not file Form 8962 because he was not enrolled in a qualified health plan.

Allocation Situation 3—no APTC. If this allocation situation applies, the enrollment premiums are allocated in proportion to the SLCSP premium that applies to each taxpayer’s coverage family. If no APTC was paid for the policy, the Marketplace may not know which enrollees are in which tax family, and therefore may furnish only one Form 1095-A showing the total premium. When this happens, the taxpayer receiving the Form 1095-A should provide a copy to the other taxpayers. You and the other taxpayer(s) must complete only column (e) on the appropriate line in Part IV to allocate the enrollment premiums to each family. See Missing or incorrect SLCSP premium on Form 1095-A under Line 10 , earlier, to determine your correct applicable SLCSP premium.

Example. Gary and his 25-year-old nondependent son, Jim, enroll in a qualified health plan. Jim has no dependents. The policy covers Gary, Jim, and Gary’s two young daughters who are Gary’s dependents. No APTC is paid for this policy. The Form 1095-A furnished by the Marketplace to Gary shows an enrollment premium of $15,000 for the year and the SLCSP premium that applies to a coverage family that incorrectly includes Gary, Gary’s daughters, and Jim. (Some states may report -0- or leave column B blank on the Form 1095-A when no APTC is paid.) Gary and Jim determine that the SLCSP premium that applies to Gary and his two dependents is $12,000 and the SLCSP premium that applies to Jim is $6,000. Gary and Jim are applicable taxpayers and each can take the PTC. According to Table 3, Gary and Jim use the rules under Allocation Situation 3 , earlier.

Gary computes his credit using his household income and family size of three, and the applicable SLCSP premium for a coverage family of three of $12,000. Jim computes his credit using his household income and family size of one, and the applicable SLCSP premium for a coverage family of one of $6,000.

Gary and Jim must allocate the enrollment premiums of $15,000 reported on the Form 1095-A, Part III, column A, in proportion to each taxpayer’s applicable SLCSP premium as follows. Gary’s allocated enrollment premiums are $10,000 ($15,000 x $12,000/$18,000) (67% of the total premiums of $15,000) and Jim’s allocated enrollment premiums are $5,000 ($15,000 x $6,000/$18,000) (33% of the total premiums of $15,000).

Gary enters Jim’s SSN on line 30, column (b), and enters “0.67” in column (e). Jim enters Gary’s SSN on line 30, column (b), and enters “0.33” in column (e). Gary and Jim leave line 30, columns (f) and (g), blank.

Allocation Situation 4—other situations where a poli- cy is shared between two tax families. Complete Part IV using the rules in this section if you need to allocate policy amounts and Allocation Situations 1 through 3 do not apply.

Allocation Situation 4 generally applies if another taxpayer indicated to the Marketplace that their tax family would include an individual you are including in your tax family, or you indicated to the Marketplace that you would include in your tax family an individual being included in the tax family of another taxpayer, and APTC was paid on behalf of that individual. In such cases, the Form 1095-A sent by the Marketplace for the policy does not accurately

20 Instructions for Form 8962 (2025)

reflect the members of your coverage family and the other taxpayer’s coverage family. Therefore, you and the other tax family must allocate the enrollment premiums, the APTC, and the applicable SLCSP premium so that each family is able to compute their PTC and reconcile their PTC with the APTC paid for their coverage.

Under the rules in this section, you and the other taxpayer may agree on any allocation of the policy amounts between the two of you. You may use the percentage you agreed on for every month for which this allocation rule applies, or you may agree on different percentages for different months. However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month. If you cannot agree on an allocation percentage, each taxpayer’s allocation percentage is equal to the number of individuals enrolled by one taxpayer who are included in the tax family of the other taxpayer for the tax year divided by the total number of individuals enrolled in the same policy as the individual(s). The allocation percentage you use and that you put on line 30 of Form 8962 is the percentage of the policy amounts for the coverage that you will use to compute your PTC and reconcile APTC.

Policy amounts allocated 100%. If 100% of the policy amounts are allocated to you, check “ Yes ” on line 9 and complete Part IV by entering “100” in the appropriate box(es) for your allocation percentage. If 0% of the policy amounts are allocated to you, complete Part IV by entering “-0-” in the appropriate box(es) for your allocation percentage.

Note: If APTC is paid for coverage of an individual who is not included in a tax family, the taxpayer who certifies to the Marketplace their intention to include the individual in their tax family for the year of coverage is responsible for reporting and reconciling the APTC for the individual’s coverage. See Individual you enrolled who is not included in a tax family under Lines 12 Through 23 , earlier.

Example 1. Joe and Alice have been divorced since January 2024 and have two children, Chris and Jane. Joe enrolls himself, Chris, and Jane in a qualified health plan for 2025. The annual enrollment premium for the plan is $13,000. The applicable SLCSP premium is $12,000, APTC is $6,345, and Joe’s household income is $77,672.

of $6,214 ($77,672 x 0.0800), or $10,400, Joe’s enrollment premiums). Joe has excess APTC of $1,690 (the excess of the APTC of $5,076 over the PTC of $3,386).

When Joe completes Part IV of Form 8962, he enters Alice’s SSN on line 30, column (b), and enters “0.80” in columns (e), (f), and (g). Alice is responsible for reconciling $1,269 ($6,345 x 0.20) of APTC for Jane’s coverage. If Alice is eligible for the PTC, she will take into account $2,600 ($13,000 x 0.20) of the enrollment premiums for Jane and $2,400 ($12,000 x 0.20) of the applicable SLCSP premiums. Alice must compute her contribution amount using the federal poverty line percentage for the household income and family size reported on her Form 8962.

Jane lives with Alice for more than half of 2025 and Alice claims Jane as a dependent. Joe receives a Form 1095-A showing policy amounts for the qualified health plan. Joe and Alice agree to allocate 20% of the policy amounts for the qualified health plan for Jane’s coverage. Therefore, 20% of the enrollment premiums, APTC, and the applicable SLCSP premium are allocated to Alice and 80% are allocated to Joe. According to Table 3, Joe and Alice use the rules under Allocation Situation 4 , earlier.

In computing PTC, Joe takes into account $10,400 of enrollment premiums ($13,000 x 0.80). Joe must reconcile $5,076 of APTC ($6,345 x 0.80). Joe’s tax family for 2025 includes only Joe and Chris, and Joe’s household income of $77,672 is 380% of the federal poverty line for a family size of two. Joe’s applicable SLCSP premium for 2025 is $9,600 ($12,000 x 0.80). Joe’s PTC for 2025 is $3,386 (the lesser of $3,386, the excess of Joe’s applicable SLCSP premium of $9,600 minus the contribution amount

Example 2. The facts are the same as in Example 1, except that Joe and Alice do not agree on an allocation percentage. Therefore, the allocation percentage equals the number of individuals Joe enrolled in a qualified health plan who are included in Alice’s tax family (1—Jane), divided by the number of individuals enrolled in the plan (3—Joe, Chris, and Jane). Thus, 33% of the policy amounts are allocated to Jane’s coverage. Alice is allocated 33% of the enrollment premiums, APTC, and applicable SLCSP premiums for the policy, and the remaining 67% of each is allocated to Joe.

Lines 30 Through 33, Columns (a) Through (g) If you shared a policy with another taxpayer in one of the situations described under Specific Allocation Situations , earlier, complete line 30, columns (a) through (g), as applicable. If you shared a policy with another taxpayer and you are not making an allocation in all three columns, (e), (f), and (g), leave the column blank that does not apply.

If you shared multiple policies during the year or must do more than one allocation for a single policy, complete lines 31 through 33 for each separate allocation, as needed. For instructions on making more than four separate allocations, see Line 34, later.

Not an applicable taxpayer. If you are not an applicable taxpayer because you are using filing status married filing separately and Exception 2, earlier, does not apply to you, you cannot take the PTC. Unless you are electing the alternative calculation for year of marriage, do not enter any percentages in column (e) or (f) when completing Part IV.

Lines 30 through 33, column (a). Enter the Marketplace-assigned policy number from Form 1095-A, line 2. If the policy number on the Form 1095-A is more than 15 characters, enter only the last 15 characters.

Lines 30 through 33, column (b). Enter the SSN of the taxpayer with whom you are allocating policy amounts. This SSN may or may not be reported on your Form 1095-A, depending on your relationship to the other taxpayer.

Lines 30 through 33, column (c). Enter the first month you are allocating policy amounts. For example, if you were enrolled in a policy with your former spouse from January through June, enter “01” in column (c).

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Lines 30 through 33, column (d). Enter the last month you are allocating policy amounts. For example, if you were enrolled in a policy with your former spouse from January through June, enter “06” in column (d).

Lines 30 through 33, column (e). If your allocation situation requires you to allocate the enrollment premiums on Form 1095-A, lines 21 through 32, column A, enter your allocation percentage for that policy in column (e). Enter your allocation percentage as a decimal rounded to two places (for example, for 40%, enter “0.40”). Otherwise, leave column (e) blank.

Lines 30 through 33, column (f). If your allocation situation requires you to allocate the applicable SLCSP premium on Form 1095-A, lines 21 through 32, column B, enter your allocation percentage for that policy in column (f). Enter your allocation percentage as a decimal rounded to two places (for example, for 67%, enter “0.67”). You will enter an allocation percentage in column (f) in the following two circumstances.

calculation is optional but may reduce the amount of excess APTC you must repay. To be eligible to make this election, you must meet either of the following conditions.

You answered “ Yes ” to all five questions in Table 4.
You checked “ Yes ” on line 14 of Worksheet 3.

If you, your spouse, or any individual in your tax family had coverage under a qualified health plan for at least 1 month before your first full month of marriage, use the worksheets and instructions necessary to complete the alternative calculation in Pub. 974.