If you or anyone in your family are getting advance payments of the premium
tax credit, it’s that time of year for a checkup to see if you need to
adjust your premium assistance. Since the advance payments are paid directly to
your insurance company and lower the out-of-pocket cost for your health
insurance premiums, changes in your income or family size may affect your
credit. You should report changes that have occurred since the time that
you signed up for your health insurance plan.
Changes in circumstances that you should report to your Marketplace when
they happen include:
- Increases or decreases in your household income
including, lump sum payments; for example, lump sum payment of Social
Security benefits
- Marriage
- Divorce
- Birth or adoption of a child
- Other changes affecting the composition of your tax
family
- Gaining or losing eligibility for government sponsored
or employer sponsored health care coverage
- Moving to a different address
Reporting the changes when they happen will help you avoid getting too much
or too little advance payment of the premium tax credit. Getting too much
means you may owe additional money or get a smaller refund when you file your
taxes. Getting too little could mean missing out on premium assistance to lower
what you pay out-of-pocket for your monthly premiums.
Changes in circumstances also may qualify you for a special enrollment
period to change or get insurance through the Marketplace. In most cases, if
you qualify for the special enrollment period, you generally have 60 days to
enroll following the change in circumstances. You can find Information about
special enrollment at
HealthCare.gov.
The
Premium
Tax Credit Change Estimator can help you estimate how your
premium
tax credit will change if your income or family size changes during the
year. This estimator tool does not report changes in circumstances to your
Marketplace. To report changes and to adjust the amount of your advance
payments of the premium tax credit you must contact your
Health
Insurance Marketplace.
from IRS source.
contact@officetaxservices.com
(858)247-1680
