Did you buy health insurance coverage from the Health Insurance Marketplace? Are you getting advance payments of the premium tax credit to help pay for your 2014 health insurance coverage? If you are, it’s important that you report changes in circumstances, such as changes in your income, marital status or family size, to the Marketplace.
Why? Receiving too much in advance can reduce your refund or even make you owe money when you file your federal tax return in 2015. You should report income and family size changes to the Marketplace when they happen throughout the year. Reporting changes will help make sure you get the proper type and amount of financial assistance rather than getting too much or too little in advance.
The Marketplace makes advance payments of the credit based on an estimate of the credit that you’ll claim on your tax return when you file in 2015. If you report changes in your income or family size to the Marketplace when they happen in 2014, the advance payments will more closely match the credit amount on your 2014 federal tax return. This will help you avoid getting a smaller refund than you expected or even owing money that you did not expect to owe.