Health Insurance Premium Tax Credit Check Ups
Did you apply for assistance to help pay for your health insurance premiums for coverage in 2016? If so, the Marketplace estimated the amount of assistance you received, your Premium Tax Credit (PTC). However, you may have had (or will have) some life changes between your application date and when you will file your returns for next year. These changes will affect the final PTC you are eligible to claim on your tax return.
Some of these “life changes” include:
- Having a baby or adopting a child.
- Getting a new job or losing a job.
- Moving to a different address.
- Winning the lottery or receiving some other monetary award.
- Any other changes in your income.
There are other activities you might participate in that will also have an effect on how your PTC is calculated. If you receive any payments for Social Security Disability Insurance or even take a distribution from your retirement accounts, you should speak with us immediately about how this will impact your PTC eligibility. The IRS may subtract the difference between those types of income increases from the amount of PTC you were given at the time of enrollment in your health insurance.
If you have had any major life changes or any changes in your income since you applied for health insurance from the Marketplace, we highly recommend you come in and see us for a PTC check-up. This will help eliminate some of the surprises when it comes to tax time next year.
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