Form 8962 Underpaid

The actual Premium Tax Credit for the year will differ from the advance credit amount estimated by the Marketplace if your family size or household income as estimated at the time of enrollment is different from the family size or household income you report on your return.

The more your family size or household income differs from the Marketplace estimates used to compute your advance credit payments, the more significant the difference will be between your advance credit payments and your actual credit. Other changes in circumstances, such as marriage or divorce, may also affect your credit amount.

If your actual allowable credit on your return is less than your advance credit payments, the difference, subject to certain repayment caps, will be subtracted from your refund or added to your balance due. If your actual allowable credit is more than your advance credit payments, the difference will be added to your refund or subtracted from your balance due. Either way, you will complete Form 8962, Premium Tax Credit, and attach it to your tax return for the year.

Changes in circumstances that can affect the amount of your actual Premium Tax Credit include:

o Lump sum payments of Social Security benefits, including Social Security Disability Insurance

o Lump sum taxable distributions from an individual retirement account or other retirement arrangement

o Debt forgiveness or cancellation, such as the cancellation of credit card debt

• Marriage

• Divorce

• Birth or adoption of a child

• Other changes to your household composition

• Gaining or losing eligibility for government-sponsored or employer-sponsored health care coverage

• Moving to another address