Hi, I’m Patti, and I work for the IRS.
If you purchased your health insurance through the Health Insurance Marketplace, chances are that you are receiving advance payments of the premium tax credit.
These payments are sent directly to your insurance company to lower your monthly out-of-pocket cost for health insurance.
If advance payments of the premium tax credit are being made on your behalf, it’s important to report changes in circumstances to the Marketplace when they happen.
Such changes would include increases or decreases in your household income and family size.
Reporting life changes, such as marriage, divorce, birth of a child or increases or decreases in income, will allow the Marketplace to make sure you are getting the proper type and amount of financial assistance and will help you avoid getting too much or too little in advance.
Receiving too much can affect your refund or balance due when you file your tax return.
And receiving too little could mean that you are not getting the help you need.
Remembering to report these life changes in circumstances to the Marketplace as they happen will help you avoid getting a smaller refund than you expect when you file your tax return or even owing money that you did not expect to owe.
For more information about this and other health care tax provisions, visit irs.gov/aca.
For information about health care coverage and the Marketplace, visit HealthCare.gov