A Series of Yes-or-No Questions help you Determine Eligibility for the Premium Tax Credit

The premium tax credit – also known simply as PTC –  is a credit for certain people who enroll, or whose family member enrolls, in a qualified health plan offered through a Health Insurance Marketplace. Answer the yes-or-no questions in the chart – or via accessible text – and follow the arrows to find out if you may be eligible for the premium tax credit. 

 

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

 

Dates & deadlines for 2017 health insurance

You can enroll in or change 2017 Marketplace health insurance right now.
Important dates to note:

• November 1, 2016: Open Enrollment started — the first day to enroll, re-enroll, or change a 2017 insurance plan through the Health Insurance Marketplace. Coverage can start as soon as January 1, 2017.
• December 15, 2016: Last day to enroll in or change plans for coverage to start January 1, 2017.
• January 1, 2017: 2017 coverage starts for those who enroll or change plans by December 15.
• January 31, 2017: Last day to enroll in or change a 2017 health plan. After this date, you can enroll or change plans only if you qualify for a Special Enrollment Period.

Source: Healthcare.gov

contact@officetaxservices.com

(858)247-1680

Newly Married Couples Should Report Marriage to Marketplace

If you’re recently married, you probably have a list of things to do.  There’s one other thing you should add to that list: a health insurance review. This is particularly important if you enrolled in coverage through a Health Insurance Marketplace and you receive premium assistance in the form of advance payments of the premium tax credit.

When you apply for assistance to help pay the premiums for health coverage through the Marketplace, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim for the tax year using the information you provide. This information includes details about your family composition and your projected household income.
It is important for you to report life changes – known as changes in circumstances – to your Marketplace to get the proper type and amount of financial assistance and to avoid getting too much or too little in advance. Reporting changes in circumstances will allow the Marketplace to adjust your advance credit payments. This adjustment will help you avoid getting a smaller refund or owing money that you did not expect to owe on your federal tax return.
To report changes and to adjust the amount of your advance payments of the premium tax credit you must contact your Health Insurance Marketplace. Be sure to report all changes directly to that Marketplace because they can affect both your coverage and your final credit when you file your federal tax return.
Other changes you should report to the Marketplace include:

• Birth or adoption
• Marriage or divorce
• Moving to a different address
• Increases or decreases in your household income

These changes may also open the door for the Marketplace special enrollment period that permits health care plan changes. In most cases, the special enrollment period for Marketplace coverage is open for 60 days from the date of the life event.
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. Because these tools provide only an estimate, you should not rely on them as an accurate calculation of the information you will report on your tax return. You should use these estimators only as a guide to assist you in making decisions regarding your tax situation.

Source: Internal Revenue Service

contact@officetaxservices.com

(858)247-1680

Premium Tax Credit - Checkup 2016

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