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.

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