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how is your premium tax credit from the affordable care act calculated on your irs 1040 tax return hi im kevin kennels with insurancekevin.com and i get a lot of questions about how all of the subsidies are calculated and where you find them on the 1040 tax return because most all of this is done behind the scenes if youre working with an online tax preparation software or if you hand your tax information over to a professional tax preparer in this video im going to go through how the 1095a statement of the subsidies that you received is transferred over onto form 8962 premium tax credit reconciliation and how that kind of interacts with the 1040 with a special note to self-employed individuals because there can be a hitch in the overall system im not going to touch on the california premium subsidy ill do that in another video and that could be just as cumbersome but again a lot of the stuff will be done behind the scenes but its good to know the flow of this information so you