IRS Tax Form 8962 for 2021 and 2022

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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GolferJ
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Joined: Mon Sep 13, 2021 11:26 am

IRS Tax Form 8962 for 2021 and 2022

Post by GolferJ »

Hello. I'm a long time reader and first time poster. Thanks to everyone for their valuable contributions.

My wife and I are newly using the ACA this year for health insurance. I see there are some income limitation changes related to the APTC for 2021, especially if unemployment was received. Does anyone know when the final form 8962 will be available for 2021? I can manage my MAGI for the year (by using Roth IRA withdrawals vs. Trad IRA) and would like to maximize my APTC benefits and conserve my Roth account by forecasting form 8962 for the rest of 2021. Ditto for 2022? Thanks.
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FiveK
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Re: IRS Tax Form 8962 for 2021 and 2022

Post by FiveK »

Don't know about the formal IRS form, but Roth Conversion and Capital Gains On ACA Health Insurance describes what is likely a good estimation tool available now for 2021.
Topic Author
GolferJ
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Joined: Mon Sep 13, 2021 11:26 am

Re: IRS Tax Form 8962 for 2021 and 2022

Post by GolferJ »

Thanks FiveK. That looks like some helpful info. I will review.
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gobel
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Re: IRS Tax Form 8962 for 2021 and 2022

Post by gobel »

GolferJ wrote: Mon Sep 13, 2021 11:40 am I see there are some income limitation changes related to the APTC for 2021, especially if unemployment was received.
I think if you got unemployment this year, then there's no cap on your income - ie you basically get free obamacare for all of 2021 (income harcoded to 133% of FPL).

otw the change was to remove the cliff for 2021 and 2022, so the subsidy phases out and acts like an additional 8.5% tax as your MAGI rises.
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GolferJ
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Re: IRS Tax Form 8962 for 2021 and 2022

Post by GolferJ »

Thanks Gobel, very helpful. That's exactly what I thought too.
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FiveK
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Re: IRS Tax Form 8962 for 2021 and 2022

Post by FiveK »

I believe the tool mentioned in that article will handle things correctly if you enter an unemployment income amount.
scrabbler1
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Re: IRS Tax Form 8962 for 2021 and 2022

Post by scrabbler1 »

There is a draft version of Form 8962 for the 2021 tax year.

https://www.irs.gov/pub/irs-dft/f8962--dft.pdf
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GolferJ
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Joined: Mon Sep 13, 2021 11:26 am

Re: IRS Tax Form 8962 for 2021 and 2022

Post by GolferJ »

Super, thanks scrabbler1.
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