File Your 2014 Tax Return Now to Receive Timely Advance Payments in 2016

The IRS has recently made an announced regarding the following issues related to the ACA (Affordable Care Act):

• Any taxpayer who uses the Premium Tax Credit should file their 2014 tax return as soon as possible. If a taxpayer fails to file it in a timely manner, the IRS could deny the Premium Credit in 2016.

• If any advanced payments were made to you for the Premium Credit in 2014, your 2014 tax return must be completed immediately in order to receive advance payments next year in a timely manner.

• If, on behalf of you or anyone in your family, advanced payments for the Premium Tax Credit were paid in 2014 and you fail to file a 2014 tax return, you will lose advance payments or cost-sharing reductions that help cover health insurance in 2016.

If you lose these benefits, you will have to pay the full cost of all monthly premiums and covered services. And if that weren’t enough, the IRS may require you to pay back your 2014 advance payments, either partially or in full.

The bottom-line?

File your 2014 tax return with Form 8962 electronically immediately. Do not delay! If you missed the April 15 deadline or received an extension to file until Oct. 15, complete your return as soon as possible.

Why?

It is urgent because Marketplaces will begin making eligibility determinations this fall.

Do not let an unfinished tax return ruin your chances of getting the benefits you need in 2016.

Source: IRS Health Care Tax Tip 2015-40, July 13, 2015