For the first time, taxpayers are reporting their health care
coverage status to the government. Many taxpayers that have purchased health
care from the Marketplace can claim the premium tax credit. Taxpayers are able
to take advantage of this credit by receiving it in advance. The credit is
provided to help those with low and moderate income to afford health care.
The Marketplace calculates the amount of premium tax credit
taxpayers are eligible for once information about their family’s details and
projected household income have been provided. Taxpayers can have the credit
paid to them in advance so that they can lower what they pay in their monthly
premiums. They can choose to receive the entire credit amount, a partial amount
or none of it in advance. Taxpayers can claim the total credit when they file
their tax return for the year.
Taxpayers that are claiming the premium tax credit or have
received advanced payments of premium tax credit need to complete a new form to
report their health care coverage when filing their return.
The IRS advises taxpayers to use tax preparation software to
make necessary calculations easier. Those that cannot afford to hire a tax
professional can contact the IRS to get their questions answered.
Labels: IRS, Medical Deductions, Tax Code, Tax Credit, Tax Filing, Tax News, Taxpayers