U.S. · Form 8962 line 5
Form 8962 line 5 percent of poverty line.
IRS Worksheet 2 with the 2025 poverty-line tables, as a calculator.
Divide household income (line 3) by the federal poverty line for your family size and state (line 4), multiply by 100 and drop everything after the decimal point. If line 3 is more than line 4 times 4.0, enter 401. For 2025 returns the instructions use the 2024 poverty lines: for example $15,060 for a family of one in the 48 contiguous states and D.C.
Run Worksheet 2
Result
Reference table
| Family size | 48 states and D.C. | Alaska | Hawaii |
|---|---|---|---|
| 1 | $15,060 | $18,810 | $17,310 |
| 2 | $20,440 | $25,540 | $23,500 |
| 3 | $25,820 | $32,270 | $29,690 |
| 4 | $31,200 | $39,000 | $35,880 |
| 5 | $36,580 | $45,730 | $42,070 |
| 6 | $41,960 | $52,460 | $48,260 |
| 7 | $47,340 | $59,190 | $54,450 |
| 8 | $52,720 | $65,920 | $60,640 |
| Each additional person over 8 | +$5,380 | +$6,730 | +$6,190 |
How Worksheet 2 works
The instructions give four steps. Line 1 is the amount from Form 8962 line 3; line 2 is the amount from line 4 (the poverty line); line 3 is line 2 times 4.0. If line 1 is more than line 3, the household income is more than 400% of the poverty line and you enter 401 on line 5. Otherwise divide line 1 by line 2 without rounding, multiply by 100 and drop any numbers after the decimal point. The IRS examples: 0.9984 becomes 99, 1.8565 becomes 185 and 3.997 becomes 399.
Which poverty line applies
Line 4 uses the table for your state of residence and the family size from line 1. For 2025, the instructions say the 2024 poverty lines are used. If you moved during 2025 and lived in Alaska and/or Hawaii, or you file jointly and you and your spouse lived in different states, use the table with the higher dollar amounts for your family size. For more than 8 people, add the per-person amount in the last row to the 8-person figure.
Worked example
A household of 2 in the 48 states with $48,000 of household income: line 2 is $20,440 and line 3 is $81,760. $48,000 is not more than $81,760, so divide: 48,000 / 20,440 = 2.348, times 100 = 234.8, and dropping the decimals gives 234 on line 5. The income is illustrative; the method and poverty line are the IRS’s.
Below 100 percent
If line 5 is below 100%, the instructions allow the premium tax credit only in two cases: the Marketplace estimated at enrollment that your household income would be at least 100% of the poverty line and advance payments were made, or an enrolled, lawfully present individual is not eligible for Medicaid because of immigration status, plus the other listed conditions. Otherwise you are not an applicable taxpayer. If the PTC applies, continue to line 7. Next step: Form 8962 line 11.
Sources
- Instructions for Form 8962 (2025): Line 3, line 4, line 5 and Worksheet 2, and Tables 1-1 to 1-3. Read November 2, 2026.
- Form 8962 (2025): The form itself, for exact line wording. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is line 5 on Form 8962?
Household income as a percentage of the federal poverty line, figured with Worksheet 2 from the line 3 household income and the line 4 poverty line.
Do I round the percentage on Form 8962 line 5?
No. The instructions say not to round: multiply by 100 and drop any numbers after the decimal point. For 1.8565 enter 185.
What do I enter if my income is over 400 percent?
Enter 401 on line 5 when line 1 of Worksheet 2 is more than line 3 (the poverty line times 4.0).
Which poverty line does Form 8962 use for 2025?
The instructions use the 2024 federal poverty lines, in Table 1-1 for the 48 contiguous states and D.C., Table 1-2 for Alaska and Table 1-3 for Hawaii.
What if line 5 is below 100 percent?
You may still take the PTC if you meet the instructions’ requirements, such as an enrollment-time estimate of at least 100% with advance payments, or a lawfully present enrollee ineligible for Medicaid because of immigration status.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.