Reconcile advance payments of Marketplace premium tax credits
The premium tax credit helps pay premiums for health insurance purchased from the Health Insurance Marketplace. Taxpayers who received 2019 advance credit payments must compare and reconcile their advance credit payments to the actual premium tax credit they are allowed for the year. They do this reconciliation when they file their tax return on Form 8962, Premium Tax Credit. Failing to file Form 8962 and reconcile 2019 advance credit payments may affect return processing, generate an IRS letter and delay the taxpayer's refund. It may also affect a taxpayer's eligibility for advance payments of the premium tax credit or cost-sharing reductions to help pay Marketplace health insurance coverage in the future. See IRS Publication 5187, Affordable Care Act: What You and Your Family Need to Know (PDF).
The Affordable Care Act contains comprehensive health insurance reforms and includes tax provisions that affect individuals, families, businesses, insurers, tax-exempt organizations and government entities. These tax provisions contain important changes, including how individuals and families file their taxes. The law also contains benefits and responsibilities for other organizations and employers.
Individuals & Families
The law requires you and your dependents to have health care coverage. If you purchased coverage from the Health Insurance Marketplace, you may be eligible for the premium tax credit.
The Affordable Care Act includes requirements for employers regarding heath care coverage. The size and structure of your workforce determines your responsibility. However, if you have no employees, the following information doesn’t apply to you.
- ACA Information Center for Tax Professionals
- Individual Shared Responsibility Provision
- The Premium Tax Credit
- Small Business Health Care Tax Credit
- Employer Shared Responsibility Provisions
- Information Reporting by ALEs
- Information Reporting by Coverage Providers
- Information Returns - AIR Program