Updated November 7, 2026. Quick answer: The 2026 Form 8962 draft and its draft instructions make two changes that matter. Households above 400% of the federal poverty line are no longer eligible for the premium tax credit, and the new line 6 is where that is applied. And the cap on repaying excess advance credit is gone: lines 28 and 29, which applied the limit on the 2025 form, are reserved, and the line 27 amount goes straight to Schedule 2 line 1a.
Related 2027 figures: 2027 ACA subsidy cliff.
What the draft instructions say changed
The What’s New section of the draft 2026 instructions leads with “For tax years beginning after 2025, taxpayers whose household income exceeds 400% of the federal poverty line for their family size are not eligible for the premium tax credit (PTC).” The second item reads “For tax years beginning after 2025, if the advance payments of the PTC made on a taxpayer’s behalf exceed the PTC allowed for the year, the taxpayer must repay the full excess amount when filing the tax return.” and adds “The former repayment limitations based on household income as a percentage of the federal poverty line no longer apply.” Two more items change who can claim: below 100% of the poverty line, a lawfully present individual who was ineligible for Medicaid solely because of immigration status is no longer eligible for the credit on that basis, and coverage enrolled through certain income-based special enrollment periods is disallowed unless a qualifying life event applies.
Line 6: the 401% question
| Line | 2025 form | 2026 draft |
|---|---|---|
| 6 | “Reserved for future use” | “Did you enter 401% on line 5?” A No answer says “No. Continue to line 7.” A Yes answer says “Yes. You are not eligible to take the PTC.” |
The line 6 instruction reads “If the amount on line 5 is 401%, you are not eligible for the PTC.” and sends a Yes answer to the instructions on repaying any advance credit. See Form 8962 lines 3 to 6 for how lines 3 to 5 work.
Lines 27 to 29: the repayment limitation
| Line | 2025 form | 2026 draft |
|---|---|---|
| 27 | Excess advance payment of PTC; the difference is entered on line 27 | Excess advance payment of PTC; the difference is entered here and on Schedule 2 (Form 1040), line 1a |
| 28 | “Repayment limitation” (see instructions) | “Reserved for future use” |
| 29 | Excess advance PTC repayment: the smaller of line 27 or line 28, entered here and on Schedule 2, line 1a | “Reserved for future use” |
The Form 8962 lines 27 to 29 page describes the 2025 repayment limitation. On the 2026 draft, the amount entered on Schedule 2 line 1a is the full line 27 difference.
What this page cannot tell you
- Only draft instructions were read; the applicable figure table and the line 4 poverty tables for 2026 are not described here.
- How much any one household owes or receives depends on its Form 1095-A figures and the final instructions.
- The draft is not final; the IRS cover sheet says “Do not file draft forms.”
Edition
This page compares the IRS early-release drafts of the 2026 Form 8962 (created April 21, 2026) and its instructions with the 2025 Form 8962 final, retrieved on November 7, 2026. The 2026 documents are early-release drafts. The IRS says of such drafts: “We incorporate all significant changes to forms posted with this coversheet.” A draft can still be replaced before the final form is released, so check the final form before you rely on a line number.
Common mistakes
- Skipping line 6. On the draft it is the question that ends the credit for a 401% answer.
- Looking for the repayment limitation on line 28. The draft marks lines 28 and 29 reserved.
- Assuming line 27 goes to line 29. On the draft it goes to Schedule 2 line 1a.
Related: Form 8962, ACA subsidy cliff 2026, and Form 8962 lines 3 to 6.
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Answer againSources
- IRS draft Form 8962 for tax year 2026 (early release draft, irs.gov/pub/irs-dft): irs.gov (PDF)
- IRS Form 8962 for tax year 2025 (final, irs.gov/pub/irs-prior): irs.gov (PDF)
- IRS draft Instructions for Form 8962 for tax year 2026 (early release draft, irs.gov/pub/irs-dft): irs.gov (PDF)
Read from the documents linked above on November 7, 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.