Updated October 18, 2026. Quick answer: Line 7 is the applicable figure, a decimal read from a table in the instructions using your line 5 percentage. Line 8a multiplies line 3 by line 7 to give your annual contribution amount. Line 8b divides that by 12 for the monthly amount.
Line 7: the applicable figure
The form’s caption reads “Using your line 5 percentage, locate your” applicable figure “on the table in the instructions”. The instructions say “Enter on line 7 the decimal number from Table 2 that applies to the amount you entered on line 5.” They add “This number is used to calculate your contribution amount.” Table 2 is printed in the instructions, so take the decimal from the table itself.
Lines 8a and 8b: the contribution amounts
For line 8a the instructions say “Multiply line 3 by line 7 and enter the result on line 8a, rounded to the nearest whole dollar amount.”
For line 8b: “Divide line 8a by 12.0 and enter the result on line 8b, rounded to the nearest whole dollar amount.” The captions are “Annual contribution amount. Multiply line 3 by line 7. Round to nearest whole dollar amount” and “Monthly contribution amount. Divide line 8a by 12. Round to nearest whole dollar amount”.
Computed illustration, not an IRS example: suppose line 3 is $50,000 and the line 7 decimal were 0.0400, a made-up figure for the arithmetic only. Line 8a is $50,000 x 0.0400 = $2,000. Line 8b is calculated as $2,000 / 12 = $166.67, which rounds to $167.
Where the numbers come from
Line 3 and line 5 come from the lines 3 to 6 page. The decimal comes from Table 2 in the instructions.
When you skip these lines
If advance payments of the credit were paid for your coverage but you cannot take the credit because you are married filing separately and do not qualify for an exception to the joint filing requirement, the instructions say to “complete lines 1 through 5 to figure your separate household income as a percentage of the federal poverty line.” They continue “Skip lines 7 through 8b and complete lines 9 and 10 (and Part IV, if applicable).” A similar skip applies when income is below the poverty line and you do not qualify: if advance payments were paid for anyone in your tax family, skip lines 7 and 8 and go to line 9, and if none were paid, stop and do not complete Form 8962. That is covered on the lines 3 to 6 page.
Where it goes next
The contribution amounts feed Part II. Column (c) of the annual row is captioned “Annual contribution amount (line 8a)”, and for the monthly rows it is “(amount from line 8b or alternative marriage monthly calculation)”. Those rows are covered on the lines 11 to 23 page, after the choices on the lines 9 and 10 page. The credit built from them is explained at Schedule 3 line 9.
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
- Multiplying the wrong lines. The instructions say “Multiply line 3 by line 7” for line 8a.
- Forgetting to round. Both lines call for the result to be “rounded to the nearest whole dollar amount.”
- Completing these lines while married filing separately without an exception. The instructions say “Skip lines 7 through 8b and complete lines 9 and 10 (and Part IV, if applicable).”
Related: ACA subsidy calculator, ACA subsidy cliff, Form 1095-A column B, and Schedule 3 line 9.
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.