Form 8962: Premium Tax Credit for 2025

If you had health insurance through the Health Insurance Marketplace in 2025, the IRS wants to check the advance payments against your actual year. Form 8962, Premium Tax Credit, is where that check happens. It is filed with your income tax return.

This guide covers the 2025 form. It explains who must file, what to copy from Form 1095-A, and where the answer goes on your return.

Who must file

You must file Form 8962 with your return if any of these is true:

You, or someone in your tax family, got advance payments of the premium tax credit (APTC) to lower the monthly premium.
You claim the premium tax credit (PTC) on your return.
Someone else enrolled a person in your tax family in Marketplace coverage, and you must reconcile the APTC for that person.

Your tax family generally includes you, your spouse, and your dependents. If you were married at the end of 2025, you generally must file a joint return to claim the PTC. The instructions describe exceptions, including for certain victims of domestic abuse or spousal abandonment.

IRS: Form 8962, Premium Tax Credit (2025)

What you need from Form 1095-A

The Marketplace sends Form 1095-A. It is the starting point. Part III lists each month. It shows the monthly enrollment premium, the second lowest cost silver plan (SLCSP) premium, and the APTC paid for each month. Read Form 1095-A and the premium tax credit for 2025 for a walk-through of those columns.

Use the figures on the form, not your memory of what you paid. If the form is missing or wrong, contact the Marketplace before you file.

The main steps

The form works in a simple order. First, it figures your annual PTC, based on your income and family size. Then it compares that amount with the APTC you received. The difference decides what happens next.

If the PTC is more than the APTC, you get the extra amount as a credit on your return.
If the APTC is more than the PTC, you have an excess advance payment. You repay part or all of it, depending on the repayment limits.

Where the numbers go

Line 26 (net PTC): enter it on Schedule 3 (Form 1040), line 9.
Line 27 (excess advance payment): the amount by which the APTC is more than the PTC.
Line 28 (repayment limitation): the limit from Table 5 in the instructions. The limit depends on your household income compared with the federal poverty line, and on whether you file as single or under another filing status.
Line 29 (excess advance PTC repayment): the smaller of line 27 or line 28. Enter it on Schedule 2 (Form 1040), line 1a.

Use the form and Table 5 for the exact amounts. Do not guess a limit from a table you saw online.

Why the repayment limit matters

For tax year 2025, the repayment cap depends on your income. If your income was low, the cap can be small. If your income was higher, the cap can be larger or no cap applies. The instructions show the tiers. Read Table 5 before you start, so the numbers make sense when you reach line 28.

Common mistakes

Using the wrong household size. The tax family rule is not the same as the people on the policy.
Copying the premium from a bill, not from Form 1095-A.
Using the annual method when a month had a change in coverage. The form has a monthly section for that case.
Filing before you have the 1095-A. The Marketplace's deadline to send it for 2025 coverage was January 31, 2026.

Next steps

Gather your 1095-A, your income records for 2025, and a list of everyone in your tax family. Then work through the form line by line. If the numbers do not make sense to you, the instructions for Form 8962 and Publication 974 explain each line. A tax professional who works with Marketplace coverage can also help.

Sources: Sources: IRS, Form 8962, Premium Tax Credit (2025), Created 3/25/25 (https://www.irs.gov/pub/irs-pdf/f8962.pdf); IRS, Instructions for Form 8962 (2025) (https://www.irs.gov/pub/irs-pdf/i8962.pdf); IRS Publication 974 (https://www.irs.gov/publications/p974) This is general information, not advice about your specific return.

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