Premium Tax Credit Reconciliation For 2018

Premium Tax Credit

Premium Tax Credit

By now you should have received your 1095-A form in the mail from the Marketplace. If you haven’t, we advise you to get in contact with your agent as soon as possible. You can then see if they can send you a copy of it. If you are unable to contact them and you are in desperate need to obtain this form, contact the marketplace directly. This 1095-A form contains information about the amount of premium tax credit your household received from the marketplace in order to help you pay for your health insurance plan in 2018.  Once you have your 1095-A form, follow these simple steps.

Premium Tax Credit Steps

First, make sure your 1095-A form is accurate and complete before you move forward. Verify that the effective dates of coverages match the amount of months you and/or your household members had coverage for the year 2018. If not, contact your agent as soon as possible so they can assist you with the process. Your 1095-A form should detail the amount of credit you received by month. If you notice that there are some months missing, you might have another 1095-A form. Please make sure you have all the 2018 months accounted for.

Once you have your 1095-A form you can now fill out the Form 8962 to reconcile your premium tax credit. When reconciling your premium tax credit compare two amounts. One is the amount used in 2018 to lower your monthly insurance payment. The other is the actual premium tax credit you qualify for based on your final 2018 income. Your application for the 2018 year included an estimate for the amount of income you were planning on earning. Now that you have the correct amount, any difference between your estimated income and your final income will affect your refund or tax owed.

Homeowners Insurance Explained

homeowners insurance

What is Homeowners Insurance?

Because everyone’s needs are not the same, it’s best to consult your agent to help assess your needs and find the insurance policy that is right for you. But first, what exactly is homeowners insurance? Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered, but there are exceptions. The most significant are flood or earthquake damage, and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.

The question you may be asking is, “Why do I need homeowners insurance?” It is really about protecting yourself financially if something unexpected happens to your home or possessions. That’s important because chances are, your home is likely one of your largest investments.

An Example

For example, if a fire or natural disaster destroys your home, you’d need money to repair or replace it. Or if a an injury happens to a guest in your home, liability protection and medical coverage help pay expenses. Or if you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs. And if you are still paying for your home, your lender will require insurance. It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what’s included and what is not.

Here are few things to discuss with your agent that will influence your decisions:

  • How much will it cost to rebuild my house? How much will it cost to replace my damaged or destroyed belongings? Ask your agent to talk you through your home’s features and the things you own so you can make an informed decision about coverage.
  • Does the insurance company have a good reputation for customer service?
  • What discounts are available? Ask about multiple policy discounts, security system and fire resistance discounts.
  • What’s the process for filing and settling a claim? Ask who to call and what happens after you file a claim.

Financial Disaster Prevention

Financial Disaster: Did You Know?

Did you know that 58 percent of people in Miami-Dade and Broward counties spend more money than they earn? If you don’t find that alarming enough, what happens if you suffer a heart attack or are diagnosed with a critical illness? If you are living check by check, you are going to end up struggling financially.

Here’s another statistic; more than 40 percent of Americans don’t have any form of life insurance coverage. And I am a part of that, because that happened to me. My father did not have life insurance. He passed away when I was 12 years old, and leaving us without financial stability.

So, most people need life insurance in order to cover either a critical or chronic illness. Otherwise you will not be able to cover these expenses simply because you don’t have enough money in savings. Another way to look at it is, the reason why we need life insurance is because you don’t have a year’s worth of your salary saved to cover these circumstances. That’s why you need life insurance with living benefits.

If you die, it is simply obvious that you need life insurance to protect your loved ones. If you leave your family behind without proper financial planning, their loss will be much worse. You don’t want to be a part of the 40 percent of the population without any form of life insurance protection.

An Interesting Statistic

Now, another interesting statistic is that 85 percent of males who are in jail did not have a father in the house when they were growing up. Divorce or the death of the father is the reason why this is the case. That’s a serious number. You might be wondering, “Why is that the case?” The reason is, the mother works three jobs, while the kids are raised by someone else.

3 Key Points

Three key points to takeaway and think about and to help avoid a financial disaster:

Point 1: If you don’t have life insurance, the scenarios I discussed could happen to your family. 60 percent of people that do not have life insurance end up losing their property approximately 6 months after the deceased person dies.

Point 2: A lot of young children end up in jail because their father is not home and the mother has to go to work.

Point 3: 60 percent of bankruptcies in the United States are the direct result of unpaid medical bills. And 78 percent of these people have health insurance; however they didn’t have a policy that would cover their expenses. That is because people think, “If I have health insurance, I’m covered.” No, you are not covered. Health insurance doesn’t pay for your bills.

Get advice and choose the best plan

At ACA Advisor we are aware that preparing for the unexpected ensures your family peace of mind.