The repayment of excess Advance Payment of the Premium Tax Credit (APTC) is reported on Form 8962, Part III, Line 29. This amount is then transferred to Schedule 2 (Form 1040), Line 1a, where it is included in your total tax liability or adjustments.
How to Calculate the Repayment Amount
The repayment amount is determined by comparing the total APTC received (Line 25) with the actual Premium Tax Credit (PTC) you are eligible for (Line 24). The difference, if any, is the excess APTC you may need to repay (Line 27).
- Line 27: Calculate the excess APTC by subtracting Line 24 from Line 25 (if Line 25 is greater).
- Line 28: Apply the repayment limitation based on your household income (from Form 8962, Line 5) and filing status. Use Table 5 in the instructions to find the applicable limit. If your income is $400 or more, there is no limit, and you must repay the full excess (Line 27).
- Line 29: Enter the smaller of Line 27 or Line 28. If Line 28 is blank (no limit applies), enter the amount from Line 27.
Finally, enter the amount from Form 8962, Line 29 on Schedule 2 (Form 1040), Line 1a, which is part of your overall tax return.
Source:
Form 8962 Instructions (2025)
Disclaimer: Always verify details with the current year’s official IRS forms and instructions, as well as your state’s Department of Revenue if applicable. For complex situations, consult a tax professional or CPA.