Paying for health coverage can get expensive. To ease the burden, people who purchase coverage through the Health Insurance Marketplace are offered advanced payments of the premium tax credit. These payments are made directly to your insurance provider and make coverage more affordable for individuals with moderate incomes. If you took advantage of this option, it’s time for a tax checkup. A quick review now can save you money in the future.
To ensure you’re receiving the right amount of assistance, you’re obligated to report any changes in circumstance as they occur. Some changes that need to be reported are:
• Getting married or divorced
• An increase or decrease of income
• Having a baby
• Starting a new job with health benefits
There’s never enough time in the day, but the Marketplace makes it easy for you to update your profile. They can be reached online at Healthcare.gov or by phone at 1-800-318-2596.
If you receive more financial assistance than you’re entitled to, you will either owe Uncle Sam or get a smaller than expected refund at tax time. Depending on your income and filing status, repayments of the excess assistance could range from $300 to $2,500. If it’s shown that your income was too high to be eligible for the credit, you will have to repay any payments that were made on your behalf without limitation. ezTaxReturn.com supports premium tax credit entries and can help determine any necessary penalties based on your entries when you file with us.
Experiencing a change in circumstance may also qualify you for a special enrollment period. If you qualify, you will be given 60 days to purchase a new insurance plan or change the plan you already have.