Premium Tax Credit: Changes in Circumstances

The Premium Tax Credit can assist you in purchasing health insurance as long as you buy it through the Health Insurance Marketplace.

You also need to have family income that fits within the eligible range, and you can’t be eligible for any other programs such as Medicare, Medicaid, or employer insurance.

You can get the Premium Tax Credit either as an advance payment when you enroll (paid directly to the insurance company), or you can apply for it in total when you file your 2015 tax return.

The advance payments are based on your family size and estimated income for the year, and help to offset your monthly premiums. If your family size or income changes during the year, report it immediately to the Marketplace so you don’t end up owing money that you didn’t expect.

At tax time, if you’re eligible for the Premium Tax Credit, complete the form that calculates exactly what your credit will be.

Learn more at IRS.gov/aca.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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