Updated November 4, 2026. Quick answer: Worksheet Z in Publication 974 (2025) is the repeat of Worksheet Y for a second or later deduction or exclusion from the same list. Its line 1 starts from Worksheet Y line 3, so each further item lowers the revised household income again, and a filer with several items completes one Worksheet Z for each.
Pub 974 worksheet walk-throughs: Pub 974 Step 3 and Step 5 Worksheets.
When Worksheet Z applies
The sheet begins with a single instruction: “Complete Worksheet Y before you complete Worksheet Z.” The ending of Worksheet Y points here: “Then, complete Worksheet Z for the other deduction/exclusion.” For a third item or more, “Then, complete another Worksheet Z for the other deduction/exclusion.” The four items and their order are on the Worksheet Y page. As in Worksheet X, the household income being reduced is the figure the Form 8962 instructions define: “Household income does not include the modified AGI of those individuals whom you claim as dependents and who are filing a 2025 return only to claim a refund of withheld income tax or estimated tax.”
What is different from Worksheet Y
Only line 1, the two notes at line 14 and the closing text change. Line 1 reads “Enter the amount from Worksheet Y, line 3”, where Worksheet Y line 1 came from Worksheet X line 14. Line 14 of Z drops the clause about Worksheet Z and says “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.” The closing text reads “Also, use the amounts on line 2 of Worksheets Y and Z in any step that requires you to figure AGI, modified AGI, and household income.” Lines 2 to 13 and 15 to 22 are the same as Worksheet Y’s, with the same ladder.
Lines 1 to 14
| Line | What it asks |
|---|---|
| 1 | “Enter the amount from Worksheet Y, line 3” |
| 2 | “Enter the deduction or exclusion” |
| 3 | “Revised household income. Subtract line 2 from line 1” |
| 4 | “Enter the smaller of Worksheet W, line 19, or $750 ($375 if your filing status is single)” |
| 5 | “Subtract line 4 from line 3. If zero or less, enter -0-” |
| 6 | “Enter the amount from Worksheet X, line 17b” |
| 7 | “Divide line 5 by line 6.” “If the result is less than 200, enter $750 ($375 if your filing status is single) on line 14.” |
| 8 to 13 | The $1,950 and $3,250 steps repeat Worksheet Y: “If the result is less than 300, enter $1,950 ($975 if your filing status is single) on line 14.” “If the result is less than 400, enter $3,250 ($1,625 if your filing status is single) on line 14.” |
| 14 | “Enter the amount you were instructed to enter here by line 7, 10, or 13.” |
Lines 15 to 22 and what comes next
Lines 15 to 21 copy lines 6, 27, 29 and 5 of Worksheet X: “Enter the amount from Worksheet X, line 6”, “Enter the amount from Worksheet X, line 27”, “Enter the amount from Worksheet X, line 29” and “Enter the amount from Worksheet X, line 5”. Line 22 is “Add lines 20 and 21.” The next step is “Repeat the Iterative Calculation Method or Simplified Calculation Method, whichever applies.” If no more items are left, the publication says to “complete either method through the last step and follow the step instructions for claiming the PTC and self-employed health insurance deduction on your tax return.”
Example with invented numbers, second item
Illustration, not an IRS example; every result is computed from the inputs. Continue the Worksheet Y example: revised household income after the $2,500 bond interest exclusion was $98,175. Now suppose a $1,000 student loan interest deduction, the next item in the list.
| Line | Entry | Amount |
|---|---|---|
| 1 | Worksheet Y line 3 (computed in the Worksheet Y example) | $98,175 |
| 2 | The next deduction in the list: invented $1,000 student loan interest deduction | $1,000 |
| 3 | Revised household income, line 1 minus line 2 (computed) | $97,175 |
| 4 | Smaller of Worksheet W line 19 ($16,581) or $750 (computed) | $750 |
| 5 | Line 3 minus line 4 (computed) | $96,425 |
| 6 | Worksheet X line 17b | $31,200 |
| 7 | Line 5 divided by line 6, decimals dropped (computed) | 309% |
| 8 | Smaller of W line 19 or $1,950 (computed) | $1,950 |
| 9 | Line 3 minus line 8 (computed) | $95,225 |
| 10 | Line 9 divided by line 6, decimals dropped (computed) | 305% |
| 11 | Smaller of W line 19 or $3,250 (computed) | $3,250 |
| 12 | Line 3 minus line 11 (computed) | $93,925 |
| 13 | Line 12 divided by line 6, decimals dropped (computed) | 301% |
| 14 | Under 400, so the $3,250 amount | $3,250 |
| 16 | Lines 14 and 15 added (line 15 is Worksheet X line 6, $8,800, computed) | $12,050 |
| 18 | Smaller of line 16 or line 17 ($13,000, computed) | $12,050 |
| 20 | Smaller of line 18 or line 19 ($25,381, computed) | $12,050 |
| 22 | Line 20 plus line 21 (blank), computed | $12,050 |
Revised household income falls to $97,175, still over 300 percent of the poverty line and under 400, so line 14 stays the $3,250 amount and line 22 stays $12,050. The sheet still has to be completed, because a different family size or income would change the result.
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
- Starting Worksheet Z from Worksheet X line 14. Line 1 is Worksheet Y line 3, so the earlier item is already subtracted.
- Skipping Worksheet Y and going straight to Z. The sheet says to complete Y first.
- Using one Worksheet Z for two further items. Each additional deduction or exclusion gets another Worksheet Z.
- Forgetting to carry line 2 of both worksheets into AGI and household income when repeating the calculation method.
Related: student loan interest worksheet, Schedule 1 lines 21 to 23, 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
- 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.