Failing to file 2015 taxes may affect your healthcare in 2017
Failing to file 2015 tax returns will prevent advance payments in 2017
If you, or anyone on your tax return, received advance payments of the Premium Tax Credit in 2015 under the health care law, you should file your 2015 tax return as soon as possible — even if you missed the April 18 deadline or received an extension to file. This will ensure you can timely receive advance payments next year from your Health Insurance Marketplace.
When you purchased health coverage for 2015 through the Marketplace, if you chose to have advance payments of the Premium Tax Credit sent directly to your insurer to lower your monthly insurance premiums, you are required to file a tax return to reconcile advance payments even if you are otherwise not required to file.
If advance payments of the Premium Tax Credit were paid on behalf of you or an individual in your family in 2015, and you do not file a 2015 tax return, you will not be eligible for advance payments of the Premium Tax Credit or cost-sharing reductions to help pay for your Marketplace health insurance coverage in 2017. This means you will be responsible for the full cost of your monthly premiums and all covered services. In addition, the IRS may contact you to pay back some or all of the 2015 advance payments of the Premium Tax Credit.
Because your Marketplace will determine eligibility for advance tax credit payments and cost-sharing reductions for the 2017 coverage year this fall, it will substantially increase your chances of avoiding a gap in receiving this help if you file your 2015 tax return with Form 8962, Premium Tax Credit, electronically as soon as possible.
To repeat, if you missed the April 18 deadline or received an extension to file, you should file your return as soon as possible. You should not wait to file if you have your information including Form 1095-A, Health Insurance Marketplace Statement. File now to reconcile any advance credit payments you received in 2015 and to maintain your eligibility for future premium assistance.
Some taxpayers will be receiving an IRS letter about their Premium Tax Credit. The IRS is sending the letter because the Health Insurance Marketplace notified us that they made advance payments of the credit on your behalf to your insurance company last year. When you filed your 2015 tax return, you didn’t file Form 8962, Premium Tax Credit, to reconcile these advance payments of the premium tax credit.
Information is available on IRS.gov to help you understand why you’re getting the letter and what you need to do to resolve the issue. It also emphasizes how important it that you read the letter carefully and respond timely. Filing a tax return without including Form 8962 will delay your refund and prevents you from receiving advance credit payments in future years.
If you received a letter from the IRS about advance payments of the Premium Tax Credit, you should respond promptly. You must complete Form 8962 to reconcile your advance credit payments with the Premium Tax Credit you are eligible to claim on your return. You should have received Form 1095-A, from your Marketplace. This form provides information you will need when completing Form 8962. If you have questions about the information on Form 1095-A for 2015, or about receiving Form 1095-A for 2015, you should contact your Marketplace directly. For more information about Form 1095-A, see Health Insurance Marketplace Statements.
Remember that filing electronically is the best and simplest way to file a complete and accurate tax return as it guides you through the process and does all the math. For more information about the Affordable Care Act and the Premium Tax Credit, visit IRS.gov/aca.