Updated November 4, 2026. Quick answer: Worksheet X in Publication 974 (2025) is for self-employed filers whose insurer received advance premium tax credit payments for the months they were self-employed. It builds modified AGI and household income without the health insurance deduction, finds the poverty-line percentage and the matching repayment limitation, and ends at line 31, the number used to start the Simplified or Iterative Calculation Method.
Pub 974 worksheet walk-throughs: Pub 974 Step 3 and Step 5 Worksheets.
Pub 974 worksheet walk-throughs: Pub 974 Worksheet F.
When Worksheet X applies
The sheet opens with its own test: “Complete this worksheet only if APTC was paid to your insurer on your behalf for the months you were self-employed.” It follows Worksheet W, and Worksheet W line 18 is the gate: when line 2 of W is blank or zero, X is skipped.
Part I, lines 1 to 8, your modified AGI
| Line | What it asks |
|---|---|
| 1 | “Form 1040, 1040-SR, or 1040-NR, lines 2a, 9, and the excess, if any, of line 6a over line 6b” |
| 2 | “Enter any amounts from Form 2555, lines 45 and 50” |
| 3 | “Add lines 1 and 2” |
| 4 | “Schedule 1 (Form 1040), lines 11 through 16, 18, and 19a, plus any write-in adjustments you entered on the dotted line next to Schedule 1 (Form 1040), line 26” |
| 5 | “Enter the amount from Worksheet W, line 14” |
| 6 | “Enter the amount from Worksheet W, line 16” |
| 7 | “Add lines 4, 5, and 6” |
| 8 | “Subtract line 7 from line 3.” “Then, go to Part II if you are claiming dependents on your tax return.” |
Line 1 has special notes: “If you are filing Form 8582, Passive Activity Loss Limitations, and both lines 1d and 3 of that form are losses:” do not complete Part II or III of that form yet. On line 4 the publication adds “Include your IRA deduction on line 4 only if you (and your spouse if filing a joint return) were not covered by a retirement plan at work or through self-employment.” Passive losses are on the Form 8582 page.
Part II, lines 9 to 13, dependents
| Line | What it asks |
|---|---|
| 9 | “Enter the combined AGI for your dependents from Form 1040, 1040-SR, or 1040-NR, line 11a” |
| 10 | “Enter any tax-exempt interest for your dependents from Form 1040, 1040-SR, or 1040-NR, line 2a” |
| 11 | “Enter any amounts for your dependents from Form 2555, lines 45 and 50” |
| 12 | “Enter for each of your dependents the excess, if any, of Form 1040 or 1040-SR, line 6a, over line 6b” |
| 13 | “Add lines 9 through 12.” “Then, go to Part III” |
Only some dependents are counted: “Only include the modified AGI of those dependents who are required to file a return.” “Do not include the modified AGI of dependents who are filing a tax return only to claim a refund of tax withheld or estimated tax.”
Part III, lines 14 to 25, the repayment limitation
| Line | What it asks |
|---|---|
| 14 | “Household income. Add lines 8 and 13” |
| 15 | “Enter the smaller of Worksheet W, line 19, or $750 ($375 if your filing status is single)” |
| 16 | “Subtract line 15 from line 14. If zero or less, enter -0-” |
| 17a | “Enter the number of qualifying individuals in your tax family (including yourself)” |
| 17b | “Enter the federal poverty line amount as determined by the family size on line 17a” from the poverty-line tables in the Form 8962 instructions |
| 18 | “Divide line 16 by line 17b.” Under 200: “enter $750 ($375 if your filing status is single) on line 25” |
| 19 | “Enter the smaller of Worksheet W, line 19, or $1,950 ($975 if your filing status is single)” |
| 20 | “Subtract line 19 from line 14. If zero or less, enter -0-” |
| 21 | “Divide line 20 by line 17b.” Under 300: “enter $1,950 ($975 if your filing status is single) on line 25” |
| 22 | “Enter the smaller of Worksheet W, line 19, or $3,250 ($1,625 if your filing status is single)” |
| 23 | “Subtract line 22 from line 14. If zero or less, enter -0-” |
| 24 | “Divide line 23 by line 17b.” Under 400: “enter $3,250 ($1,625 if your filing status is single) on line 25”. At 400 or more: “enter the amount from Worksheet W, line 2, on line 25” |
| 25 | “Enter the amount you were instructed to enter here by line 18, 21, or 24.” |
The percentage lines are not rounded. The sheet says “If the result is not a whole percentage, do not round; instead, multiply this number by 100 (to express it as a percentage) and then drop any numbers after the decimal point.” Its examples: “For example, for 0.9984, enter the result as 99; for 1.8565, enter the result as 185; and for 3.997, enter the result as 399”. The poverty-line amounts and household-income percentages are explained on the Form 8962 lines 3 to 6 page.
Part IV, lines 26 to 31, the maximum deduction
| Line | What it asks |
|---|---|
| 26 | “Add lines 6 and 25” |
| 27 | “Enter the amount from Worksheet W, line 1” |
| 28 | “Enter the smaller of line 26 or line 27” |
| 29 | “Enter the amount from Worksheet W, line 15” |
| 30 | “Enter the smaller of line 28 or line 29” |
| 31 | “Add lines 5 and 30.” “Then, use one of the methods that follow to figure the PTC and the self-employed health insurance deduction for specified premiums” |
Line 25 also feeds the credit form: “Also, enter this amount on line 28 of the Form 8962 you attach to your tax return if you are required to complete that line and you do not complete Worksheet Y.” “Do not enter an amount from Table 5 in the Form 8962 instructions.” If a listed deduction or exclusion applies, Worksheet Y redoes lines 14 to 25.
The publication’s own example, Carla Birch
Recomputed from the publication’s printed example. Carla’s Worksheet W (see Worksheet W) gave line 16 of $8,800 and line 19 of $16,581. She has a family of four, so the poverty line is $31,200. Her children do not file returns, so she skips Part II.
| Line | Entry | Result |
|---|---|---|
| 1 | Total income, Form 1040 line 9 | $114,094 |
| 3 | Line 1 plus line 2 (line 2 is blank) (computed) | $114,094 |
| 4 | Self-employment tax deduction and retirement plan deduction | $4,619 |
| 6 | Worksheet W line 16 | $8,800 |
| 7 | Lines 4, 5 and 6 added (computed) | $13,419 |
| 8 | Line 3 minus line 7 (computed) | $100,675 |
| 14 | Household income (line 8 plus line 13, which is blank) (computed) | $100,675 |
| 15 | Smaller of Worksheet W line 19 or $750 (computed) | $750 |
| 16 | Line 14 minus line 15 (computed) | $99,925 |
| 17a | People in the tax family | 4 |
| 17b | Federal poverty line for a family of four, Form 8962 instructions Table 1-1 | $31,200 |
| 18 | Line 16 divided by line 17b, as a whole percentage with the decimals dropped (computed) | 320% |
| 19 | Smaller of Worksheet W line 19 or $1,950 (computed) | $1,950 |
| 21 | (Line 14 minus line 19) divided by line 17b (computed) | 316% |
| 22 | Smaller of Worksheet W line 19 or $3,250 (computed) | $3,250 |
| 24 | (Line 14 minus line 22) divided by line 17b (computed) | 312% |
| 25 | Line 24 is less than 400, so the $3,250 amount (computed) | $3,250 |
| 26 | Lines 6 and 25 added (computed) | $12,050 |
| 28 | Smaller of line 26 or line 27 ($13,000) (computed) | $12,050 |
| 30 | Smaller of line 28 or line 29 ($25,381) (computed) | $12,050 |
| 31 | Lines 5 and 30 added (line 5 is blank, computed) | $12,050 |
The percentage on line 18 is 320%, so she goes on to line 19; line 21 is 316%, still above 300; line 24 is 312%, under 400, so line 25 is the $3,250 amount. Line 31 is $12,050, which the Simplified Calculation Method uses as the starting self-employed health insurance deduction for Step 1.
Edition
This page reads Publication 974 (2025), Premium Tax Credit (PTC), the file irs.gov served on 2026-11-04 (sha256 in the kit data). Line numbers and letters belong to that edition, so check the label printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Rounding the percentages. The sheet drops the decimals, so a computed 312.26 is entered as 312, never 313.
- Using the single-filer amounts for a joint return, or the reverse. Each cap has a lower figure for single filers.
- Counting a dependent who files only for a refund in Part II. The sheet leaves that dependent out.
- Stopping at line 31 as if it were the final deduction. It is the input to the calculation methods the publication describes next.
Related: Form 8962 lines 2a and 2b, Form 8962 worksheets, and Pub 974 Worksheet B.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for your finances
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore optional adviser matching today
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Publication 974 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/p974.pdf
- Instructions for Form 8962 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/i8962.pdf
Read from the IRS documents linked above on November 4, 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.