Updated November 5, 2026. Quick answer: Worksheet D in Publication 974 (2025) is for the third taxpayer on a health plan that covered a couple who divorced or legally separated, for example a grandparent who claims a child. It weights each former spouse’s Worksheet C percentage by what that spouse agreed to give you, adds the two results, and gives the one decimal for columns (e), (f) and (g) of Form 8962, Part IV.
When Worksheet D applies
The publication says “Use this allocation method if you are including in your tax family one or more individuals who were enrolled in a qualified health plan with members of the tax families of other taxpayers who must also allocate policy amounts as a result of divorce or legal separation in 2025.” The former spouses use Worksheet C. Both of their Worksheet C line 1 decimals are inputs here, so you need those two numbers from them.
Step 1 and Step 2: one agreement per former spouse
Step 1 is “Determine an allocation percentage with one of the former spouses.” “You may agree on any allocation percentage from -0- to 100.” “You may use the percentage you agreed on for every month during which this allocation rule applies, or you may agree on different percentages for different months.” Step 2 repeats the process with the second former spouse: “Allocate the policy amounts with the second former spouse using the same rules as Step 1 above.” The percentage goes “on line 4 of Worksheet D”.
With no agreement, the head count applies: “the allocation percentage is equal to the number of individuals you include in your tax family for the tax year who were enrolled in the qualified health plan for which you are allocating policy amounts, divided by the total number of individuals enrolled in the plan.” The publication says that percentage “applies to the amounts you must use to compute the PTC and reconcile it with APTC.” “The former spouse must compute the PTC and reconcile APTC using the remaining amounts.”
Lines 1 to 7
| Line | What it asks |
|---|---|
| 1 | “Enter the decimal from line 1 of the Worksheet C completed by one of the former spouses from Step 1 above” |
| 2 | “Enter as a decimal the percentage from Step 1 above” |
| 3 | “Multiply line 1 by line 2” |
| 4 | “Enter the decimal from line 1 of the Worksheet C completed by the other former spouse from Step 2 above” |
| 5 | “Enter as a decimal the percentage from Step 2 above” |
| 6 | “Multiply line 4 by line 5” |
| 7 | “Add line 3 and line 6. This is the allocation percentage.” |
Step 4: what goes in Form 8962, Part IV
“If you use the same percentages in Steps 1 and 2 above for every month to which this allocation method applies, use only one of lines 30 through 33 in Part IV to report the allocation.” “If you use different percentages for different months in Step 1 or Step 2, use a separate line in Part IV for each allocation percentage.”
| Column | What goes in it |
|---|---|
| (a) | “Enter the Marketplace-assigned policy number from Form 1095-A, line 2.” |
| (b) | “Enter the SSN of the former spouse whose percentage you entered on Worksheet D, line 1.” |
| (c) | “Enter the first month you are allocating policy amounts.” |
| (d) | “Enter the last month you are allocating policy amounts.” |
| (e), (f), (g) | “Enter the decimal from Worksheet D, line 7.” |
The IRS example 1: Lydia
Lydia is Kara and David’s children’s grandmother in the first example, and she files as head of household with Meredith and Sam in her tax family. The publication has Kara and Lydia agreeing on 80% to Lydia and David and Lydia agreeing on 50%, after Kara and David agreed on 30% and 70%. Lydia’s worksheet, recomputed:
| Line | Entry | Value |
|---|---|---|
| 1 | Line 1 of Kara’s Worksheet C (Step 1) | 0.30 |
| 2 | Percentage Kara agreed with Lydia in Step 1 | 0.80 |
| 3 | Line 1 times line 2 (computed) | 0.24 |
| 4 | Line 1 of David’s Worksheet C (Step 2) | 0.70 |
| 5 | Percentage David agreed with Lydia in Step 2 | 0.50 |
| 6 | Line 4 times line 5 (computed) | 0.35 |
| 7 | Line 3 plus line 6 (computed) | 0.59 |
Line 7 is 0.59, entered in columns (e), (f) and (g) with Kara’s SSN in column (b) and 01 and 09 for the months. Her monthly amounts on Form 8962 are $413 of enrollment premium, $384 of applicable SLCSP premium and $251 of APTC (computed: the policy amount times 0.59, rounded to the dollar). Kara’s 0.06, David’s 0.35 and Lydia’s 0.59 add up to 1.00 (computed).
The IRS example 2: Lydia and Kimberly
In the second example Meredith lives with Lydia and Sam lives with his aunt Kimberly, so there are two third taxpayers. Kara and David agreed on 40% and 60%. Lydia’s agreements are 50% from Kara and 20% from David:
| Line | Entry | Value |
|---|---|---|
| 1 | Line 1 of Kara’s Worksheet C | 0.40 |
| 2 | Percentage agreed with Lydia | 0.50 |
| 3 | Line 1 times line 2 (computed) | 0.20 |
| 4 | Line 1 of David’s Worksheet C | 0.60 |
| 5 | Percentage David agreed with Lydia | 0.20 |
| 6 | Line 4 times line 5 (computed) | 0.12 |
| 7 | Line 3 plus line 6 (computed) | 0.32 |
Kimberly agreed 25% with each former spouse:
| Line | Entry | Value |
|---|---|---|
| 1 | Line 1 of Kara’s Worksheet C | 0.40 |
| 2 | Percentage agreed with Kimberly | 0.25 |
| 3 | Line 1 times line 2 (computed) | 0.10 |
| 4 | Line 1 of David’s Worksheet C | 0.60 |
| 5 | Percentage David agreed with Kimberly | 0.25 |
| 6 | Line 4 times line 5 (computed) | 0.15 |
| 7 | Line 3 plus line 6 (computed) | 0.25 |
Lydia’s line 7 is 0.32 and Kimberly’s is 0.25. Each then completes Form 8962 the same way as in the first example, with the different percentage. With Kara’s 0.10 and David’s 0.33, the four shares add up to 1.00 (computed).
Example with invented numbers
Illustration, not an IRS example. The percentages are made up and every result is computed.
| Line | Entry | Value |
|---|---|---|
| 1 | Line 1 of the first former spouse’s Worksheet C (invented) | 0.60 |
| 2 | Percentage agreed with that former spouse (invented) | 0.25 |
| 3 | Line 1 times line 2 (computed) | 0.15 |
| 4 | Line 1 of the other former spouse’s Worksheet C (invented) | 0.40 |
| 5 | Percentage agreed with that former spouse (invented) | 0.25 |
| 6 | Line 4 times line 5 (computed) | 0.10 |
| 7 | Line 3 plus line 6 (computed) | 0.25 |
Line 7 is 0.25. If the two former spouses’ Worksheet C results are 0.45 and 0.30 (the invented figures on the Worksheet C page), the three results add up to 1.00 (computed).
Edition
This page reads Publication 974 (2025), Premium Tax Credit (PTC), the file irs.gov served on 2026-11-05. Worksheet letters and line numbers belong to that edition, so check the label printed on the worksheet in your own copy before you follow a line reference.
Common mistakes
- Using a former spouse’s Worksheet C line 5 on line 1. Line 1 is the decimal from line 1 of their Worksheet C, their Step 1 agreement.
- Entering the same SSN for both agreements. Column (b) is the former spouse whose percentage is on line 1.
- Leaving out the second former spouse. Lines 4 to 6 repeat lines 1 to 3 for the other former spouse, and line 7 adds the two products.
- Applying a Worksheet D percentage to some policy amounts and a different one to others in the same month.
Related: Worksheet C, Form 8962 lines 30 to 34, and Publication 974.
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Answer againSources
- Publication 974 (2025), Premium Tax Credit (PTC): https://www.irs.gov/pub/irs-pdf/p974.pdf
- IRS, About Publication 974, Premium Tax Credit (PTC): https://www.irs.gov/forms-pubs/about-publication-974
Read from the IRS documents linked above on November 5, 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.