Advance Payments of the Premium Tax Credit

Advance Payments of the Premium Tax Credit

clock-imageTime is running out if you received advance payments of the premium tax credit in 2015 and have not filed your 2015 tax return yet. You must file your 2015 return and reconcile any advance credit payments you received in 2015 in order to help prevent losing eligibility for future premium assistance.

The IRS is sending notices (Letter 5858 or Letter 5862) to those who received the advance payments, but have not filed their 2015 returns.

Here is what you need to do if you received a 5858 letter:

  • Read your letter carefully.
  • Review the situation to see if you agree with the information in the letter.
  • Use the Form 1095-A that you received from your Marketplace to complete your return. If you need a copy of your Form 1095-A, log in to your HealthCare.gov or state Marketplace account or call your Marketplace call center.
  • File your 2015 tax return with Form 8962 as soon as possible, even if you don’t normally have to file.
  • If you have already filed your 2015 tax return with Form 8962, you can disregard the letter.

Here’s what you need to do if you received a 5862 letter:

  • Read your letter carefully.
  • Review the situation to see if you agree with the information in the letter.
  • Use the Form 1095-A that you received from your Marketplace to complete Form 8962. If you need a copy of your Form 1095-A, log in to your HealthCare.gov or state Marketplace account or call your Marketplace call center.
  • File your 2015 tax return with Form 8962 as soon as possible, even though you have an extension until October 17, 2016, to file.
  • If you have already filed your 2015 tax return with Form 8962, please disregard this letter.

These letters encourage you to file within 30 days of the date of the letter.

When you file your return, be sure to include Form 8962 – Premium Tax Credit.

For more information on the Premium Tax Credit and to see if you qualify,  see the IRS article on this subject.

Colleen Minnich

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