IRS Form 1040 Schedule 2 (Tax Year 2018) Checklist
Year and Form Specificity
For 2018, Schedule 2 (Form 1040) emerged as a redesigned, consolidated form under the Tax Cuts and Jobs Act framework. Unlike prior years’ schedules, the 2018 version explicitly reported only alternative minimum tax and excess advance premium tax credit repayment in Part I, reflecting the TCJA's structural changes and the continuation of shared responsibility payment rules through tax year 2018, before their elimination in 2019.
The premium tax credit reconciliation remains mandatory for taxpayers who receive advance payments through the Health Insurance Marketplace for 2018 coverage. Shared responsibility payment liability for individuals without minimum essential coverage applied through tax year 2018; no fee was required for 2019 and later.
Ten-Step Checklist: Form 1040 Schedule 2 (2018)
Step 1: Verify Filing Requirement
Confirm that you are filing Form 1040, Form 1040-SR, or Form 1040-NR for tax year 2018 (not Form 1040-EZ or Form 1040-A, which were discontinued after 2017). Schedule 2 is required only if you have items to report on lines 45 or 46.
Step 2: Calculate Alternative Minimum Tax (AMT) Using Form 6251
If your income, deductions, or credits trigger AMT, complete Form 6251 to determine your tentative minimum tax amount. For 2018, the AMT exemption amounts are $70,300 for single filers, $109,400 for married filing jointly or qualifying widow or widower, and $54,700 for married filing separately. Attach Form 6251 to Schedule 2.
Step 3: Gather Form 1095-A if You Received Advance Premium Tax Credit
Locate your Form 1095-A (Health Insurance Marketplace Statement) showing advance payments of the premium tax credit (APTC) for 2018 coverage. This form is required to reconcile your advance payments with your actual premium tax credit entitlement.
Step 4: Complete Form 8962 to Reconcile Premium Tax Credit
File Form 8962 (Premium Tax Credit) if you, your spouse, or any dependent was enrolled in a qualified health plan through the Marketplace for 2018 and advance payments were made. Form 8962 calculates whether you must repay excess APTC or are entitled to a net premium tax credit.
Step 5: Transfer AMT Amount to Line 45 of Schedule 2
From Form 6251, line 11 (your AMT amount), enter this figure on Schedule 2, line 45. If Form 6251 results in zero or less, enter -0- on line 45. Attach Form 6251 as a supporting document.
Step 6: Transfer Excess APTC Repayment to Line 46 of Schedule 2
From Form 8962, line 29 (excess advance premium tax credit repayment amount), enter this figure on Schedule 2, line 46. If no excess repayment is due or if you are entitled to a net credit (not a repayment), enter -0- on line 46. Attach Form 8962 as a supporting document.
Step 7: Calculate Schedule 2 Total on Line 47
Add the amounts on lines 45 and 46. Enter this total on Schedule 2, line 47. This sum must also be included on Form 1040, line 11 (line 17 for later years; however, for 2018, line 11 is correct according to the form instructions).
Step 8: Verify Form 1040 Line 11 Integration
Confirm that the Schedule 2 total (line 47) is added to Form 1040, line 11. This amount will become part of your total tax calculation on Form 1040. Do not double-report these amounts elsewhere on your return.
Step 9: Assemble and Attach Required Forms
Arrange all schedules and forms in the order specified by the Attachment Sequence Number shown in the upper right corner of each document. Schedule 2 has Attachment Sequence No. 02 and must appear after Form 1040 (Seq. No. 01) and before other schedules. Ensure Form 6251 and Form 8962 are attached behind Schedule 2.
Step 10: Sign, Date, and Mail
Sign and date Form 1040 with the required taxpayer (and spouse, if filing jointly) signature(s) and date(s). Mail the complete return—including Form 1040, Schedule 2, Form 6251 (if applicable), and Form 8962 (if applicable)—together as one package. Refer to the IRS Where to File page for Form 1040 (2018) to determine the correct mailing address by state and filing status.
2018 Schedule 2 Line Structure and Changes
Lines 38–44: Reserved (no entries allowed). Change type: Redesigned. Previously part of Schedule 4 in 2018; entirely reserved for future use in the 2018 version.
Line 45: Alternative minimum tax. Attach Form 6251. Change type: Added. New to Schedule 2 in 2018; previously lines 45–46 on original Form 1040. AMT exemption amount increased under TCJA: $70,300 (single); $109,400 (MFJ); $54,700 (MFS).
Line 46: Excess advance premium tax credit repayment. Attach Form 8962. Change type: Added. New to Schedule 2 in 2018; Medicare premium tax credit reconciliation required for all APTC recipients per ACA § 36B.
Line 47: Add the amounts in the far right column. Enter here and include on Form 1040, line 11. Change type: Added. Subtotal of lines 45 and 46; transfers to Form 1040, line 11.
Form-Specific Limitations and Restrictions (2018)
Resident Status Requirement: Nonresident aliens filing Form 1040-NR may file Schedule 2 only if they have an alternative minimum tax or excess APTC repayment related to U.S.-source income. Nonresident aliens’ eligibility for credits is limited; most cannot claim certain deductions available to residents.
Self-Employment and Household Employment Taxes: For 2018, self-employment tax and household employment tax are reported on Schedule 4 (Form 1040), not Schedule 2. Schedule 2 in 2018 covers only AMT and APTC repayment (Part I). Do not confuse with later-year versions of Schedule 2, which consolidated more tax items.
Required Attachments and Documentation
Gather and attach the following documents in order by Attachment Sequence Number: Form 1040 (Seq. No. 01); Schedule 2 (Seq. No. 02) with completed lines 45, 46, and 47; Form 6251 (if line 45 is greater than zero); Form 8962 (if line 46 is greater than zero); all other applicable schedules and forms (in sequence order).
Compliance and Filing Notes
Do not include Form 1095-A, Form 1095-B, or Form 1095-C directly with your tax return; these are information documents only. Reference information from Form 1095-A when completing Form 8962, but do not attach the 1095-A itself. All entries on Schedule 2 must be based on completed supporting forms (Form 6251 for AMT; Form 8962 for premium tax credit reconciliation). Incomplete or unsupported amounts will delay processing.
The Paperwork Reduction Act Notice associated with Schedule 2 (OMB No. 1545-0074) is included in the broader Form 1040 instructions; no separate notice is required. For filing address, refer to the IRS’s official Where to File page for Form 1040 (2018) by your state and filing status. Schedule 2 is not filed separately; it must be submitted with Form 1040.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
