Updated October 18, 2026. Quick answer: Line 3 adds lines 2a and 2b to get household income. Line 4 is the federal poverty line for your state and family size, taken from a table in the instructions. Line 5 shows household income as a percentage of that poverty line, and line 6 is reserved for future use.
Related reading on this site: IRS Publication 974.
Line 3: household income
The instructions say “Add the amounts on lines 2a and 2b. Combine them even if one or both of them are negative.” Then: “If the total is less than zero, enter-0on line 3.” The form’s caption is “Household income. Add the amounts on lines 2a and 2b. See instructions”. Where the two parts come from is on the lines 2a and 2b page.
Computed illustration, not an IRS example: if line 2a were $42,000 and line 2b were $8,000 (a made-up pair), line 3 would be $42,000 + $8,000 = $50,000.
Line 4: the federal poverty line
The instructions say “Check the box to indicate your state of residence in 2025.” The form offers three boxes: “a Alaska b Hawaii c Other 48 states and DC”. For the amount: “Enter on line 4 the amount from Table 1-1, 1-2, or 1-3 that represents the federal poverty line for your state of residence for the family size you entered on line 1 of Form 8962.”
On the year, the instructions say “For 2025, the 2024 federal poverty lines are used for this purpose”. If you moved during 2025 and you lived in Alaska and/or Hawaii, or you are filing jointly and you and your spouse lived in different states, “use the table with the higher dollar amounts for your family size.” The tables are printed in the instructions, so read your amount there. The family size comes from the line 1 page; a general page on poverty levels is at federal poverty level.
Line 5: household income as a percentage
The form’s caption is “Household income as a percentage of federal poverty line (see instructions)”. The instructions say “Figure your household income as a percentage of the federal poverty line using Worksheet 2.” Do the division and any rounding on that worksheet, because its directions are printed there.
The instructions also describe the 2025 ceiling: “For tax year 2025, taxpayers with household income that exceeds 400% of the federal poverty line for their family size may be allowed a PTC.” Around that edge, see the ACA subsidy cliff page.
If line 5 is below 100%
“If the amount on line 5 is less than 100%, you can take the PTC if you meet the requirements under Estimated household income at least 100% of the federal poverty line next or Alien lawfully present in the United States, later.” Under the first of those, one requirement is “The Marketplace estimated at the time of enrollment that your household income would be at least 100% of the federal poverty line for your family size for 2025.” If you do not qualify, “you are not an applicable taxpayer and you are not eligible to take the PTC.” Then “If APTC was paid for any individuals in your tax family, skip lines 7 and 8, and go to line 9.” “However, if no APTC was paid for any individuals in your tax family, stop; do not complete Form 8962.”
Line 6: reserved
Line 6 is printed on the form as “Reserved for future use”. The instructions have no separate paragraph for line 6, so there is nothing to enter there. Go from line 5 to line 7.
Where it goes next
Line 3 is multiplied on line 8a, and line 5 picks the figure for line 7. The instructions say “Enter on line 7 the decimal number from Table 2 that applies to the amount you entered on line 5.” Those steps are on the lines 7, 8a and 8b page.
Edition and line numbers
This page reads the 2025 Form 8962 and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form says “Attach to Form 1040, 1040-SR, or 1040-NR.” Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Using the wrong state table. The instructions say to enter “the amount from Table 1-1, 1-2, or 1-3 that represents the federal poverty line for your state of residence”.
- Entering anything on line 6. The form prints it as “Reserved for future use”.
- Assuming income under the poverty line always ends the credit. The instructions say “you can take the PTC if you meet the requirements under Estimated household income at least 100% of the federal poverty line next or Alien lawfully present in the United States, later.”
Related: federal poverty level, ACA subsidy cliff, ACA subsidy calculator, and Form 1040 AGI.
Sources
- Instructions for Form 8962, Premium Tax Credit (PTC) (2025): https://www.irs.gov/pub/irs-pdf/i8962.pdf
- Form 8962, Premium Tax Credit (PTC) (2025): https://www.irs.gov/pub/irs-pdf/f8962.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.