If you purchased coverage through the Marketplace, you should receive Form 1095-A, Health Insurance Market Statement, from your Market by early February. If this form indicates that the APTC was paid on behalf of a family member, you must complete Form 8962, Premium Tax Credit (TCO) to reconcile these advance payments. Form 1095-A contains the information you need to complete Form 8962. If you have any questions about the information on Form 1095-A or how to obtain Form 1095-A, you should contact your Marketplace directly. The IRS is unable to answer questions about the information on your Form 1095-A or missing or lost forms. If you have an employer-sponsored plan, including retirement coverage, this is an essential minimum coverage, you are not eligible for the premium tax credit for your Marketplace coverage, even if the employer plan is prohibitive or does not offer a minimum value. You may be eligible for a premium tax credit for the coverage of another family member who subscribes to Marketplace coverage and is not enrolled in the Employer Plan. When you or a family member applies for Marketplace coverage, the Marketplace estimates the amount of premium tax credit you may be able to claim for the tax year, using the information you provide about your family composition, projected household income, and other factors, such as . B if the people you sign up are eligible for others, not covered by Marketplace. Based on this estimate, you can decide whether you want all, some or none of your estimated loans to be paid directly to your insurance company in advance to reduce your monthly premiums. If you choose to have initial payments made on your behalf, you will need to file Form 8962 with your tax return to match the amount of advance payments with the premium tax credit you can claim based on your actual household income and family size, except for certain taxpayers whose 2020 CTA is higher than their 2020 CWP. For more information on the 2020 tax year, see the new section On coronavirus tax breaks on this page.
The vast majority of people who have to make overpayments in advance will meet this balance by reducing their expected income tax refund. However, if you owe a balance beyond your refund, you should know that the IRS regularly works with taxpayers who owe amounts they can`t afford. The possibility of entering into a payment agreement for such insufficient payments is identical to the provisions relating to other tax balances. See Publication 4849, Can`t Pay the Tax You`ve Put in Debt? PDF for more information on how to pay your federal income tax late. If there is only one silver plan, that plan will be treated as the second lowest silver plan. If the two silver plans with the lowest cost have identical premiums, this premium is the premium for the second lowest silver plan. Yes. If you have an APTC of any amount or do not have an APTC but plan to take advantage of the premium tax credit, you will need to file a Form 8962 and attach it to your federal income tax return for that year. If you have an APTC, use Form 8962 to match the difference between the APTC created on your behalf and the actual amount of credit you can claim on your return. This notification obligation applies whether or not you have to file a return.
The health insurance market, also known simply as the market, is where you can find information about private health insurance options, buy health insurance, and get help with premiums and expenses if you`re eligible. The Department of Health and Social Services (HHS) manages the requirements of the Marketplace and the health plans it offers. In general, you take out health insurance on the market during an open registration period. Once the registration deadline has passed, individuals experiencing certain life events may be eligible for a special registration period to purchase a health care plan through a marketplace. For more information about who is eligible for a specific enrollment period, information about future open enrollment periods, and more information about the Marketplace, see HealthCare.gov. The amount of the premium tax credit is generally equal to the premium for the second lowest money plan available on the Market that applies to your insurance family members, minus a certain percentage of your household income. However, the credit must not exceed the rewards of the Marketplace plan or the plans you or your family sign up for (called sign-up rewards). Your insurance family consists of family members who are enrolled in coverage through the Marketplace and who are not eligible for non-marketplace coverage such as Medicare, Medicaid, or affordable employer-sponsored coverage. (See question 6 to find out who is in your family.) Note: Federal poverty guidelines – sometimes referred to as the « federal poverty line » or FPL – give an amount of income that counts as the poverty level for the year, based on family size.
The Department of Health and Human Services (HHS) establishes the federal poverty guideline each year. The government usually adjusts revenue limits each year to account for inflation. At the beginning of each calendar year, the Federal Register publishes a table reflecting these amounts. This information can also be found on the HHS website. HHS offers three federal guidelines on poverty: one for residents of the 48 contiguous states and D.C., one for Alaskans, and one for Hawaiians. For the purposes of the premium tax credit, eligibility for a given year is based on the most recent federal poverty guidelines published on the first day of the annual open registration period. For example, the 2018 tax credit is based on the 2017 LPF. For more information, see the instructions for Form 8962. If your employer offers affordable coverage for yourself, you are generally not eligible for the premium tax credit. However, the regulations in Section 36B of the Internal Revenue Code provide a safe haven for employees for certain market affordability provisions.
Under the Employee Safe Harbor, Employer-sponsored coverage will be considered prohibitive to you if (1) you have provided the Marketplace with accurate information about the cost of Employer-sponsored coverage and (2) the Marketplace has determined that you are entitled to upfront Premium Tax Credit (CTA) payments because the Employer-sponsored coverage is based on on your projected household income. was unaffordable. In these circumstances, you would still be eligible for the premium tax credit if you met the other eligibility criteria, although employer-sponsored coverage would have been affordable based on your actual household income. The Employee Safe Harbor does not apply to you if, in reckless disregard of the facts, you have provided a market with false information about the portion of the employee`s annual self-coverage premium under the plan. If APTC is done on your behalf or as a family member and you do not file a tax return, you are not eligible for APTC to pay for your Marketplace health insurance in the coming years. .