ACA Strikes Again, Are you Prepared?

The Affordable Care Act (ACA) continues to evolve as the IRS begins to address challenges faced during the past tax season. A recent IRS announcement warns taxpayers who use the Premium Tax Credit to file their 2014 tax return immediately. Failing to do so may cause the IRS to deny using the Premium Care credit during 2016. Here is what you need to know.

Who? Anyone who uses the Marketplace to purchase their health insurance and receives the Premium Tax Credit. The IRS announcement applies to;

Advanced Premium Tax
Credit Users

This IRS warning impacts anyone who has their Premium Tax Credit paid directly to their health insurance provider to help lower their monthly health insurance premium payments.

AND

No 2014 Tax Return on File
This notice specifically impacts those who use the tax credit and have not filed a 2014 tax return.
aca-premium-tax-credit

What happens. If you are impacted by this announcement you will no longer be eligible to receive pre-payment of the Premium Tax Credit in 2016. You will need to come up with the money to pay for your entire health insurance premium each month.

Action to take. If you do not want this to impact you, file your 2014 tax return as soon as possible. File now even if you filed a tax extension giving you until October 15, 2015 to file your tax return.

To learn more please review IRS Health Care Announcement: IRS 2015-40