January 31st was the last day for open enrollment in health coverage from the Health Insurance Marketplace for 2016. But you can still enroll or change your plan if you have certain life changes, or qualify for Medicaid or CHIP. If you or your family members do enroll in a Marketplace plan, you may be eligible for the premium tax credit.
What is the premium tax credit?
The premium tax credit is a credit that makes health coverage more affordable for people with low to moderate incomes.
What is the Health Insurance Marketplace?
The Health Insurance Marketplace is where you can research health insurance plans available in your area, purchase coverage and get financial assistance to lower your monthly premiums and out-of-pocket expenses.
How do I get the premium tax credit?
When you apply for coverage through the Marketplace, they’ll estimate a credit amount for you based on your family size and projected household income. With this information, you’ll be able to decide whether you want the full amount or just a portion of the credit paid in advance to your insurer to reduce your monthly payments.
If you decide to have advance payments of the credit paid to your insurer, you’ll be required to file a tax return to reconcile the payments made on your behalf. If you fail to do so, you will be prevented from receiving advance payments of the credit in the future. ezTaxReturn.com supports the Form 8962 needed to claim or reconcile the premium tax credit. It’s fast, easy and inexpensive; so you can do your taxes and get the premium tax credit if you qualify.
What happens if my family size or income changes during the year?
If your income or family size changes throughout the year, your estimated credit and actual credit amount will be different. It’s important for you to report any changes as they occur so the Marketplace can adjust your credit accordingly. If you receive more help than you’re entitled to, you will either owe money or get a smaller refund than you anticipated at tax time.