If you purchased 2016 health care coverage through the Health Insurance Marketplace, you may have chosen to have advance payments of the premium tax credit
paid to your insurance company to lower your monthly premiums. If this
is the case, it’s important to let your Marketplace know about
significant life events, known as changes in circumstances.
These changes – such as
those to your income or family size – may affect your premium tax
credit. Reporting the changes will help you avoid getting too much or
too little advance payment of the premium tax credit. Getting too
little could mean missing out on premium assistance to reduce your
monthly premiums. Getting too much means you may owe additional money or
get a smaller refund when you file your taxes. If your income for the
year turns out to be too high to receive the premium tax credit, you
will have to repay all of the payments that were made on your behalf,
with no limitation. Changes in circumstances that you should report to
the Marketplace include:
- an increase or decrease in your income
- marriage or divorce
- the birth or adoption of a child
- starting a job with health insurance
- gaining or losing your eligibility for other health care coverage
- changing your residence
Changes in circumstances
may qualify you for a special enrollment period to change or get
insurance through the Marketplace. In most cases, if you qualify for the
special enrollment period, you will have sixty days to enroll following
the change in circumstances. You can find Information about special
enrollment at HealthCare.gov.
The Premium Tax Credit Change Estimator
can help you estimate how your premium tax credit will change if your
income or family size changes during the year. This estimator tool does
not report changes in circumstances to your Marketplace. To report
changes and to adjust the amount of your advance payments of the premium
tax credit you must contact your Health Insurance Marketplace.
Find out more about the premium tax credit and other tax-related provisions of the health care law at IRS.gov/aca.
