I received a letter from the I.R.S. stating they need form 8962 before processing my taxes. What is this form and is this new?

[BMcCalpin · Accepted solution]

No, the form originated with the Affordable Care Act (ACA or Obamacare) several years ago.

The 8962 calculates the amount of Premium Tax Credit (PTC) that you deserved in order to determine if the government underpaid the PTC or overpaid it during the year. The PTC is the amount of subsidy that was applied to your insurance premiums in order to make your health insurance more "affordable".

The IRS evidently believes that you purchased insurance from an ACA marketplace (whether federal or state). They get the list of people who bought such insurance and then send letters to every taxpayer who didn't file at least the 8962.

The 8962 is filled in by information from form 1095-A, which should have been sent to you over a month ago.

If you had ACA or Obamacare insurance and did not receive a 1095-A in the mail, then contact the marketplace (federal or state) where you bought the insurance and get another copy.

If you did not buy insurance through the federal or state marketplace (but you did get a form 1095-B or 1095-C showing employer insurance), then reply to the IRS letter with a copy of this form.

[Edited 3/26/2020 8:52 am CDT - typo]