Premium Tax Credit for individuals and families
IF YOU purchased health coverage from a state or the federal Marketplace and are eligible for the premium tax credit, file Form 8962, Premium Tax Credit, with your federal income tax return. If you previously chose to have advance payments of the premium tax credit paid directly to your insurance company to lower your monthly premiums, file a tax return and attach Form 8962 Premium Tax Credit.
Claiming the Premium Tax Credit:
• Only those who purchased coverage through the Marketplace are eligible for premium tax credits.
• You may be eligible to claim a premium tax credit if you:
• Are within certain income limits;
• Do not file a Married Filing Separately tax return; or
• Cannot be claimed as a dependent by another person.
• Additionally, the person on your tax return must not have been eligible for other qualifying coverage, such as government-sponsored or employer-sponsored coverage for the same months.
Reconciling Advance Payments of the Premium Tax Credit:
• If you chose advance payments, file your tax return and attach Form 8962 Premium Tax Credit, to reconcile any advance payments made directly by the government to your insurance provider (even if you do not have to file a tax return). Compare advance payments with the amount of the premium tax credit actually allowed on the federal income tax return.
• If the premium tax credit on your federal income tax return is more than the advance payments, the additional amount of the credit will increase your refund (or lower what you owe).
• If the credit on the tax return is less than the amount advanced, you must repay excess advance payments which will increase what you owe (or reduce your refund).
• Marketplaces are required to send Form 1095-A Health Insurance Marketplace Statement by Jan. 31 of the following year. This form includes information about your coverage and any advance credit payments made directly to your insurance provider in 2014. Contact the Marketplace directly if you did not receive your Form 1095-A.
Reporting Qualifying Health Care Coverage:
• If you have minimum essential coverage, check a box indicating that you have minimum essential coverage. If you purchased your health plan through the Marketplace, you have minimum essential coverage. In addition to filing Form 8962 Premium Tax Credit, with your tax return, check a box on your tax return to indicate that you had qualifying coverage for each month.
• For more information about the premium tax credit, visit IRS.gov/aca, HealthCare.gov, or your state Marketplace website.
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Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. The firm celebrates its 38th anniversary in 2015.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in 704 Mira Monte Place, Pasadena, CA 91101. He has 50 years of experience in accounting, consulting, and tax work.
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The Firm proudly welcomes Arlene Al-os in 2015. She obtained her bachelors of Science in Accountancy from Mindanao State University and MBA from Ateneo de Manila University. She teaches intermediate accounting at UCLA and was a professor of Economics at Asia Pacific College. She has over 15 years of experience including member firms of KPMG and BDO Seidman accounting firms.
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Our readers may call (626) 744-0200 or email tax questions to [email protected]. Please visit our website for about 300 tax tips at www.victorsycpa.com.
