Changes May Impact Amount of Premium Tax Credit
Individuals with coverage through the Health Insurance Marketplace who are receiving advance payments of the premium tax credit—which are paid directly to insurance companies to lower monthly premiums—that certain changes in their income or family size may affect the credit. As a result, if circumstances have changed for such individuals, it would be prudent to perform a "mid-year checkup" via the IRS's Premium Tax Credit Change Estimator to determine if they need to adjust the premium tax credit they are currently receiving. Performing a checkup now will help individuals avoid large differences between the advance credit payments made on their behalf and the amount of the credit they are allowed when they file their tax returns next year.
Reporting Changes in Circumstances
The estimator tool does not report changes in circumstances to the Marketplace. To report changes and adjust the amount of advance payments of the credit, individuals must contact their Marketplace. Changes that should be reported to the Marketplace include:
- An increase or decrease in an individual's income;
- Marriage or divorce;
- The birth or adoption of a child;
- Starting a job that provides health insurance;
- Gaining or losing eligibility for other health care coverage; or
- Changing residences.
For more information, give us a call.