Form 1095-A and Form 8962 are linked because the tax system must reconcile Health Insurance Marketplace coverage with the premium tax credit. Form 1095-A supplies the coverage and payment data, while Form 8962 is used to perform the reconciliation during tax filing.
The role of Form 1095-A in this connection
Form 1095-A records monthly enrollment information, benchmark plan amounts, and any advance payments of the premium tax credit. These figures represent how the Marketplace applied the credit during the coverage year.
Why Form 8962 is required
Form 8962 is used to compare the advance premium tax credit amounts shown on Form 1095-A with the final credit amount based on actual income and household information. This comparison ensures that the credit applied during the year aligns with eligibility determined at tax time.
How the system uses both forms together
During tax processing, the information from Form 1095-A is entered into Form 8962 to calculate whether the advance credit was too high, too low, or exactly correct. The result of this calculation is then reflected in the tax return.
What this does not imply
The need to use Form 8962 does not mean that an error occurred or that Marketplace coverage was incorrect. It is a standard reconciliation step built into the tax system whenever Marketplace coverage and premium tax credits are involved.
Related questions
If the concern is whether Form 1095-A itself must be filed, see whether you need to do anything with Form 1095-A. If the question is how Marketplace coverage affects taxes more generally, see how Form 1095-A is used for taxes.
For the full process overview, return to Form 1095-A overview or consult the official document description at IRS Form 1095-A document overview.