by Deborah Ritz
Am I eligible for the health insurance premium tax credit?
You are eligible for the premium tax credit if you meet all of the following requirements:
Purchase coverage through the Marketplace;
Have household income that falls within a certain range;
Are not able to get affordable coverage through an eligible employer plan that provides minimum value;
Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE;
Do not file a Married Filing Separately tax return (unless you meet the criteria in section 1.36B-2T(b)(2) of the Temporary Income Tax Regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the Married Filing Separately filing status;
Cannot be claimed as a dependent by another person.
I got health insurance through the Marketplace, how will I know what to report on my federal tax return?
The Marketplace will send you an information statement showing the amount of your premiums and advance credit payments by January 31 of the year following the year of coverage.
For example, you will receive the 2015 information statement by January 31, 2016, and can use this information to compute your premium tax credit on your 2015 tax return and to reconcile the advance credit payments made on your behalf with the amount of the actual premium tax credit.
This reconciliation is crucial since the premium tax credit is based on the prior year (2014) income tax return or an estimate of the current year’s income.
If those figures are higher or lower than actual 2015 return you might have an additional credit refund or have to repay any excess credit applied.
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Questions for Deborah Ritz can be e-mailed to The Weekly Adirondack at WeeklyADK@yahoo.com