Jeff Hess, the individual health expert, has noticed a reoccurring issue, regarding advanced premium tax credits (APTCs), this year. Many clients are expressing concerns because even though they qualify for APTCs they are being denied tax credits. After some investigation, Jeff Hess attributes this issue to taxes. Watch the video below to learn more!
Advanced Premium Tax Credits (APTCs) Depend on Your Filed Taxes
If you had a health insurance plan in the past two years, then you may have received Advanced Premium Tax Credits. If you remember correctly, when you apply for APTCs, you have to attest that you filed taxes for that policy year. So in 2015, you would have had to file your taxes by April 15, 2016. However, there are exceptions to that deadline for those that qualify. For all individuals though, there are certain forms that must be filled out. For instance, there’s the 1095A form, which must be submitted in addition to the tax form that’s sent to the IRS. Moreover, you also have to have the 8962 form, which must be filed in conjunction with the 1095A to prove you had insurance. These forms break down each and every month that you had insurance, as well as the subsidy amount.
Get Your Taxes Submitted ASAP
Therefore, it’s important to file taxes not only on time but also correctly. If the forms like 1095A and 8962 don’t get filed along with your taxes in 2015 or in 2016, then you may not receive your Advanced Premium Tax Credits when even if you qualify. If they qualify, then their income is at the Federal Poverty Level threshold of 100% and 400%, meaning their premiums will be reduced to next to nothing. This year people are renewing their plan or getting a different plan because their plan is not renewing for 2017. When they’re in the renewing process, they request APTCs because they qualify. Unfortunately, if taxes were not filed on time, correctly, or at all, then people will discover on healthcare.gov that they qualify for a qualified health plan but no advanced tax credits.
Though your taxes may be late, you can still submit them to the IRS. Make sure they’re submitted correctly! Once your taxes are reviewed by the government, which may be a lengthy process, then you can receive your Advanced Premium Tax Credits. However, until your APTCs take effect, you will be paying full premium on your health plan.