U.S. citizens in need of health insurance have until January 31, 2016 to take advantage of the Health Insurance Marketplace’s open enrollment period. When you enroll in a Marketplace plan, you can have advance payments of the premium tax credit paid directly to your insurer to lower your monthly premium. If you take advantage of this benefit, you must file a tax return to reconcile any advance payments made on your behalf. Here are a few other things you need to know about advance payments of the credit.
• If the premium tax credit calculated on your return is more than the advance payments made on your behalf, the difference will increase your refund or lower your tax liability.
• If the advance payments made on your behalf are more than the amount you’re allowed, you will have to repay a portion or the full excess amount. This will result in you getting a smaller refund or having a larger balance due.
• If you receive advance payments of the credit and don’t file a tax return, you won’t be eligible for advance payments of the credit to help pay for health coverage in the future. Do your taxes at ezTaxReturn.com. It’s fast, easy and we support premium tax credit entries.
• The repayment amount is based on your household income and filing status. If your household income is 400% or more than the federal poverty line, you’ll have to repay all of the advance payments. The following table depicts the repayment limits.