If you got married, moved to a different state, had an income increase or adopted a child, remember to report the change(s) to the health Insurance Marketplace. Some of the other institutes that you need to report any major life changes are:
- The postal service
- Utility companies
- Your employer
- Financial institutions, including bank(s)
When it comes to the premium tax credit, reporting changes helps the health care department correctly determine the correct insurance coverage and accurately calculate the amount of credit you are allowed. It's important to inform the Health Insurance Marketplace of any changes, especially if you're receiving premium tax credit payments in advance. If you make a larger claim than what you are eligible for, you may wind up with a tax debt (if you do not owe taxes). Changes may also lead to you getting a smaller or a bigger refund.
Reporting changes immediately will help the Marketplace update your information and make the calculations based on your new circumstances. Many times, it may even impact your eligibility for the credit.
Some of the major changes that must be reported to the Marketplace include:
- Marriage or divorce
- Birth or adoption of a child
- Increase or decrease in income
- Change of residence
- Changes that impact eligibility for other health care coverage
- Beginning a job with health insurance
In addition to this list, it's safe to report any major changes that you believe may impact your taxes. If there is a difference in the information you provide to the Marketplace and what you file on your tax returns or provide to others, including financial institutions, then you may find your refund delayed or the credit cancelled.
Labels: IRS, Tax Credit, Tax News, Taxpayers