The Internal Revenue Service is advising those who are getting advance payments of their health care premium tax credit through a health care marketplace to make a midyear checkup of any change in personal circumstances that could affect their year-end tax liability.
The advance payments are paid directly to a person’s insurance company to lower their monthly premium. Changes in income or family size could affect one’s premium and whether a person owes money to the government at year’s end, or whether they are missing out on premium assistance over the course of the year, the IRS says.
The IRS advises people to report the following changes in personal circumstances: an increase or decrease in income; marriage or divorce; birth or adoption of a child; starting a job with health insurance ; gaining or losing eligibility for other health care coverage; or a change in residence
Changes in circumstances also may qualify a taxpayer for a special enrollment period to change or obtain insurance through a health care marketplace. Information about special enrollment is available at HealthCare.gov.