If you purchased insurance through the Health Insurance Marketplace, you may be getting advance payments of the premium tax credit. These are paid directly to your insurance company to lower your monthly premium. Changes in your income or family size may affect your premium tax credit. If your circumstances have changed, a mid-year checkup is a good idea to see if you need to adjust the premium assistance you are receiving or at least to prepare yourself for the effect the change will have on your tax return.
Changes in circumstances that you should report to the Marketplace include, but are not limited to:
- an increase or decrease in your income
- marriage or divorce
- the birth or adoption of a child
- starting a job with health insurance
- gaining or losing your eligibility for other health care
- coverage
- changing your residence
Reporting the changes will help you avoid getting too much or too little advance payment of the premium tax credit. Getting too much means you may owe additional money or get a smaller refund when you file your taxes. Getting too little could mean missing out on premium assistance to reduce your monthly premiums.
For more information you can view the brief IRS video message on this subject.
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