Form 8962 is a tax form that is used to calculate and claim the premium tax credit, which is a subsidy that helps individuals and families with low or moderate incomes pay for their health insurance premiums. Freelancers who purchase health insurance coverage through the Health Insurance Marketplace may be eligible for the premium tax credit, and therefore may need to fill out Form 8962 when filing their taxes.
If a freelancer received advance payments of the premium tax credit to help pay for their health insurance premiums during the year, they must file Form 8962 with their tax return to reconcile the amount of the advance payments with the actual amount of the premium tax credit they are eligible for based on their income and family size. If the amount of the advance payments is greater than the credit the freelancer is eligible for, they may need to repay some or all of the excess amount.
Freelancers who are eligible for the premium tax credit but did not receive advance payments can also use Form 8962 to claim the credit on their tax return.
