Now is the Time for a Mid-Year Premium Tax Credit Checkup

Friday, August 28, 2015

Do you receive health insurance coverage via the Affordable Care Act’s Health Insurance Marketplace? If so, now is the time to conduct a mid-year tax credit check up.  By doing a credit check up you can take advantage of payments of the any tax credits that could be deposited to your health insurance company directly in to reduce the amount of your monthly premium. For example, if you have any changes in the size of your family or your job income, it could make a positive change in your premium tax credit (meaning you can save some money).  Now if there are any life-changing circumstances in the last few months, you can make the change now during a mid-year checkup. 

We are the Strategic Tax Lawyers.

We are tax professionals and professional tax attorneys in Los Angeles who advise all taxpayers to take the time for a mid-year premium tax credit check up to see if you will need to adjust any premium assistance you are currently receiving.  In doing so, it is best to report any major life changes as soon they occur since you signed up for your health insurance plan.  It is best to report these to the Health Insurance Marketplace.  Some of the changes that will require a notification to the Health Insurance Marketplace include a marriage or divorce; birth of a child or adoption; any change in your residence; wage or salary changes (increase or decrease); new job with health insurance coverage; and/or if your health insurance coverage edibility changes (gain or lose eligibility).

The IRS offers a calculator to estimate how the changes in your circumstances will affect the premium tax credit that you will be able to claim come tax time.  It is important to report these changes as to avoid receiving advance payment of the premium tax credit which may be too high or too low. For example, if you receive too much, you may end up owing extra money to the IRS which results in a smaller tax refund next season. On the other hand, if you don’t receive enough, you could be missing out on premium tax credits that could be used to decrease your monthly premiums.

The Strategic Tax Lawyers, LLP are a firm of tax professionals and professional tax lawyers in Los Angeles.  We, at the Strategic Tax Lawyers Firm, are experts in tax code with decades of successful experience dealing with the IRS and settling tax-related cases for our clients.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters.