Reconcile

Reconcile refers to accounting for the premium tax credits you received during the previous year.

You do this by reporting the amount when you file federal income taxes.

To reconcile, you compare two amounts:

• The premium tax credit you used in advance during the year.

• The amount of tax credit you qualify for based on your final income.

You’ll use IRS Form 8962 to do this. You can do this by hand but by far the easiest way is to use a tax preparation software.

If you used more premium tax credit than you qualify for, you’ll pay the difference with your federal taxes. For most people, their refund is reduced.

If you used less, you’ll get the difference as a credit.