Question

Is the ACA premium tax credit based on adjusted gross income, or gross income?

Forum|Forum|5 years ago
February 7, 2021
1 reply
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Our Form 8962 appears to be using our gross income and not our adjusted gross income. This is leading to us having to repay all of our premium tax credits. Can we modify Form 8962?

TurboTax Online

J

JohnW152

Form 8962 actually uses Modified AGI, and adds to that the total of your dependents’ modified AGI. Form 8962 can't be modified.

Your Modified AGI is computed by using Worksheet 1-1, Taxpayer's Modified AGI—Line 2a in the IRS's 2020 Instructions for Form 8962. You might also look at Form 8962 to conceptualize what's going on.