2019 Premium Tax Credit
For 2019, the Premium Tax Credit figures are 2.08% (Lowest applicable percentage) and 9.86% (Highest applicable percentage).
Effective 2019-01-01Source: Rev. Proc. 2018-34 (IRS)Verified 2026-09-02
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Lowest applicable percentage | 2.01% | 2.08% | +0.07% (+3.5%) |
| Highest applicable percentage | 9.56% | 9.86% | +0.3% (+3.1%) |
Who it applies to
Anyone claiming the premium tax credit for a taxable year beginning in 2019 reads their band off this table. The band is chosen by household income as a share of the Federal poverty line, and the applicable percentage for it is the share of household income the taxpayer is expected to contribute towards the benchmark plan. That share is 2.08% at the bottom of the schedule and 9.86% in the highest band the table covers, with the credit meeting the rest of the benchmark premium.
What changed this year, and why
Rev. Proc. 2018-34 indexes the applicable percentage table under § 36B for taxable years beginning in 2019. Both ends of the schedule rose: the lowest band from 2.01% to 2.08% and the highest band the table covers from 9.56% to 9.86%. The revenue procedure records that the failsafe exception in § 36B applied for 2019, so no additional adjustment was required.
Common questions
- What is the premium tax credit applicable percentage for 2019?
- For taxable years beginning in 2019 the applicable percentage table under § 36B runs from 2.08% in the lowest household income band to 9.86% in the highest band the table covers.
- How did the table change from 2018 to 2019?
- It rose at both ends. The lowest band went from 2.01% to 2.08% and the highest band the table covers went from 9.56% to 9.86%, which raises the expected contribution and lowers the credit for the same benchmark premium.
- Was an additional adjustment made for 2019?
- No. Rev. Proc. 2018-34 states that the failsafe exception described in § 36B applies for 2019, so the additional adjustment that section otherwise provides for was not required.
- Where is the 2019 table published?
- In Rev. Proc. 2018-34, issued by the IRS, which provides the applicable percentage table for taxable years beginning in 2019 for the purposes of § 36B.
Who counts as an applicable taxpayer
A taxpayer must file Form 8962 with their income tax return if they are taking the premium tax credit, if advance payments were made for anyone in their tax family, or if advance payments were made for an individual they told the Marketplace would be in their tax family. The filing requirement applies even if the taxpayer is not otherwise required to file a return. The taxpayer must use Form 1040, 1040-SR, or 1040-NR and cannot file Form 1040-NR-EZ, 1040-SS, or 1040-PR.
You must file Form 8962 with your income tax return (Form 1040, 1040-SR, or 1040-NR) if any of the following apply to you. • You are taking the PTC. • APTC was paid for you or another individual in your tax family. • APTC was paid for an individual you told the Marketplace would be in your tax family and neither you nor anyone else included that individual in a tax family.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
Household income is not the same as your AGI
For Premium Tax Credit purposes, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing jointly), plus the modified AGI of each dependent who must file a return because their income meets the filing threshold. Modified AGI equals the AGI on your tax return plus certain untaxed amounts: foreign earned income, tax-exempt interest, and the non-taxable portion of social security benefits. Household income does not include the modified AGI of dependents who file a return only to claim a refund of withheld or estimated tax. Your household income determines what percentage of income you are expected to pay toward premiums. That percentage ranges from the lowest applicable percentage of 2.08% to the highest applicable percentage of 9.86%, based on where your household income falls within the federal poverty line for your family size. The difference between the SLCSP premium and your required contribution produces the credit amount.
Household income. For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) (see Line 2a, later) plus the modified AGI of each individual whom you claim as a dependent and who is required to file an income tax return because his or her income meets the income tax return filing threshold (see Line 2b, later).
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
The second lowest cost silver plan sets the credit
Your monthly credit amount for the Premium Tax Credit is based on the second lowest cost silver plan (SLCSP) available through the Marketplace in the rating area where you live. The applicable SLCSP premium is the premium for that plan that applies to your coverage family. This amount is reported on Form 1095-A, Part III, column B. If you did not receive advance payments of the credit, that column may be blank, wrong, or show zero; if your circumstances changed during the year and you did not notify the Marketplace, the reported amount may also be incorrect. In either situation you must determine the correct applicable SLCSP premium yourself. You do not need a corrected Form 1095-A from the Marketplace. The SLCSP premium is also not the same as the enrollment premium you actually paid, unless you happened to enroll in the SLCSP.
Applicable SLCSP premium. The applicable SLCSP premium is the second lowest cost silver plan premium offered through the Marketplace where you reside that applies to your coverage family (described earlier). The SLCSP premium is not the same as your enrollment premium, unless you enroll in the applicable SLCSP. Form 1095-A, Part III, column B, generally reports the applicable SLCSP premium. If no APTC was paid for your coverage, Form 1095-A, Part III, column B, may be wrong or blank or may report your applicable SLCSP premium as -0-. Also, if you had a change in circumstances during 2019 that you did not report to the Marketplace, the SLCSP premium reported in Part III, column B, may be wrong. In either case you must determine your correct applicable SLCSP premium. You do not have to request a corrected Form 1095-A from the Marketplace.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
Paying back advance credit, and the cap on it
If the advance payments of the premium tax credit (APTC) made on your behalf exceed the credit you are allowed to take, the difference is excess APTC that you must repay. The excess APTC you must repay may be limited to the amounts in Table 5 of the instructions, which set a cap based on your household income as a percentage of the federal poverty line and your family size. The cap is tied to the range of applicable percentages for the year: the lowest applicable percentage is 2.08% and the highest applicable percentage is 9.86%. If you were married at the end of 2019 but are filing separately, the repayment limitations apply to you and your spouse separately based on the household income on each return. In certain situations the cap does not apply at all, and you must repay the full excess APTC with no limitation.
The excess APTC you must repay may be limited to the amounts in Table 5. Enter the appropriate amount from Table 5 on line 28. If you were married at the end of 2019 but are filing separately from your spouse, the repayment limitations shown in Table 5 apply to you and your spouse separately based on the household income reported on each return.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
Filing separately usually disqualifies you
If you are considered married for federal income tax purposes, you must generally file a joint return with your spouse to take the Premium Tax Credit. If you file as married filing separately and do not qualify for one of the two exceptions, you are not an applicable taxpayer and cannot take the credit. You must generally repay all of the APTC paid for a qualified health plan that covered only individuals in your tax family. If the policy also covered at least one individual in your spouse's tax family, you must generally repay half of the APTC paid for the policy. The two exceptions allow certain married persons living apart to file as head of household or single, and victims of domestic abuse or spousal abandonment to file as married filing separately, and still qualify for the credit.
Married filing separately. If you file as married filing separately and are not a victim of domestic abuse or spousal abandonment (see Exception 2—Victim of domestic abuse or spousal abandonment under Married taxpayers above), then you are not an applicable taxpayer and you cannot take the PTC. You must generally repay all of the APTC paid for a qualified health plan that covered only individuals in your tax family. If the policy also covered at least one individual in your spouse’s tax family, you must generally repay half of the APTC paid for the policy.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
A change in income or family should be reported right away, not held for tax time
Taxpayers who receive advance payments of the premium tax credit must notify the Marketplace whenever life events alter their estimated credit. A change in household income, family size, or address can shift the percentage of income the credit is designed to cover, which in 2019 ranges from a lowest applicable percentage of 2.08% to a highest applicable percentage of 9.86%. Waiting until the return is filed risks a large balance due or a reduced refund when the advance payments are reconciled against the actual credit. The IRS cautions that prompt reporting lets the Marketplace adjust the advance amount so it more closely matches the credit the taxpayer will ultimately claim on the return.
Report changes in circumstances when you re-enroll in coverage and during the year. If APTC is being paid for an individual in your tax family (described later) and you have had certain changes in circumstances (see the examples below), it is important that you report them to the Marketplace where you enrolled in coverage.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
APTC forces a return even when your income wouldn't otherwise require one
This requirement can force a return that otherwise would not be filed. If any of the circumstances covered here apply to a taxpayer, a tax return must be filed and Form 8962 attached to it, even when that taxpayer's income is too low to otherwise require filing a return. The specific form used to satisfy this requirement must be Form 1040, Form 1040-SR, or Form 1040-NR; no other return works for this purpose.
If any of the circumstances above apply to you, you must file an income tax return and attach Form 8962 even if you are not otherwise required to file. You must use Form 1040, 1040-SR, or 1040-NR.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
An affordable QSEHRA from your employer can wipe out the credit for that month
Whether a QSEHRA counts as affordable for a given month controls the premium tax credit for that same month. If the QSEHRA is affordable for the month, the rule allows no premium tax credit for that month at all - not a reduced credit, but none. The affordability test applies month by month, so a QSEHRA that is affordable in one month can zero out the credit for that month even if a different month was unaffected.
If the QSEHRA is affordable for a month, no PTC is allowed for the month.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
A wrong benchmark premium on your Form 1095-A does not excuse using it
The second-lowest-cost silver plan premium is the benchmark used to figure the 2019 premium tax credit, and taxpayers cannot simply copy a clearly incorrect figure from Form 1095-A. When the Marketplace statement appears wrong, the taxpayer must work out the correct applicable SLCSP premium for the affected months, using Pub. 974 or the HealthCare.gov tax tool for plans enrolled through the federally facilitated Marketplace. The credit itself is bounded by the applicable percentage of household income, which in 2019 runs from a lowest applicable percentage of 2.08% to a highest applicable percentage of 9.86%, so an incorrect benchmark would directly distort the credit amount and the reconciliation on Form 8962.
If any of the above apply and you did not notify the Marketplace or if you have reason to believe the Marketplace reported the wrong applicable SLCSP premium, determine the correct applicable SLCSP premium for the months affected.
2019 Instructions for Form 8962, Premium Tax Credit (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2018-34 (IRS)
- Lowest applicable percentage
Initial percentage Final percentage Less than 133% 2.08% 2.08%
- Highest applicable percentage
At least 300% but not more than 400% 9.86% 9.86%