Why Is Claiming the Premium Tax Credit A Good Idea?

Wednesday, January 27, 2016

We are the Strategic Tax Lawyers and we would like to tell you about the premium tax credit for your 2015 tax return.  If you are eligible to claim the premium tax credit, it is a great idea since the credit will help taxpayers and their families with a lower income range to afford health insurance coverage. Because of the premium tax credit, there are millions of taxpayers who are able to get health care coverage via the Health Insurance Marketplace, making them able to receive premium assistance.  The taxpayers can decide pay the insurance upfront to obtain lower their monthly premiums or pay when they file their taxes.

When a taxpayer receives advance credit payments, then the only way to reconcile the advance credit payments with the actual tax credit is to file a federal tax return. If you don’t file your tax return you won’t be able to reconcile future advance credit payments.

The IRS requires that you use the Premium Tax Credit Form 8962 in order to compare credits and to claim the credit. In case you have advance credit payments that, based on your income, exceed the amount of the premium tax credit you are eligible for, then you will need to refund the IRS the excess with your tax return.

If you or a family member has health coverage via the Health Insurance Marketplace, then you will need to include Form 1095-A with your tax return. This form requires that you give information about your insurance company, how long you’ve been covered, the amount you pay for your monthly insurance premium, and other family members enrolled in the health care coverage.

A good suggestion is to use tax preparation software, which we believe is a fast, simple and accurate way to file your tax return. There are guides to help taxpayers, as well as tax preparers with the process

The Strategic Tax Lawyers, LLP are experienced business tax attorneys, offshore tax haven attorneys, and estate planning attorneys.  The Strategic Tax Lawyers can help with your tax-related and IRS-related issues.  The Strategic Tax Lawyers offer free and confidential consultations about offshore bank accounts, business taxes, estate planning, estate tax exemption, will and trusts and tax-related issues. Call today at (800) 669-4775 if you need assistance.