Posts Tagged ‘premium tax credit’

Advance Payments of the Premium Tax Credit and Your Tax Return

Thursday, February 5th, 2015

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

When you purchased coverage for 2014 through the Marketplace, you may have chosen to have the government send advance payments of the premium tax credit to your insurer to lower your monthly insurance premiums. At that time, the Marketplace estimated these credits based on information you provided about your expected household income and family size for the year. 

If you chose to have advance credit payments sent to your insurer, you must file a federal income tax return, even if otherwise not required to file. You will need to reconcile these payments with the amount of premium tax credit you’re eligible for on your tax return. Receiving too much or too little in advance can affect your refund or balance due when you file.

You should also be cognizant of the fact that your advance premium credits have already been reported to the Internal Revenue Service.

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