tax filing season is just around the corner, and if you got this year, a premium tax credit, if you have purchased health insurance, you may be wondering how you announce your subsidy or arrange. In this article I will break down how to deal with premium tax credits if your 2014 federal tax return. 
As the expanded premium tax credits work [1945003[
As a brief refresher, you will be for premium tax credits authorized , if you meet certain income requirements, and have no access to affordable health insurance through an employer or another government program. Eligibility is based on a standard of "federal poverty level" called (FPL). The premium tax credits back to the cost of health insurance between 2% and 9.5% of annual income, depending on household income.
What is important in relation to remember on taxes, is that the premium tax credits on your household income directly related and they can pay in advanced. With advanced Payable we believe them in advance, buy the time you can receive coverage. You don, Äôt to control wait time for the credit file.
As such, there is a reconciliation process to control time to confirm that you do not get too much, or too little, compared to your actual income for the year.
Now that we, Äôve covered, as the premium tax credits work, here's what you need to know at tax time.
They are 1095-A received in the mail
first you need a form from your state, AEOS marketplace of January 31, 2015 receive. The form is entitled 1095-A , ÄúHealth Insurance Market Statement, AEU and it will look like this:
form 1095-A contains the form you need information to complete 8962 - Premium Tax credit (PTC). We, Äôll next talk about this form.
Form 8962 file you will with your Federal Tax Return
Next you will fill out to Form 8962 using the information obtained from the Market on Form 1095-A.
Form 8962 will ask you to provide information on your family size available, actual household income (MAGI) what you pay for health insurance, and the height of the extended premium tax credit you have received.
The form uses this information to the amount of your premium to get tax credit in accordance you, Äôre enabled with any advanced premium tax credit you received.
Form 8962 is as follows:
to reconcile your Advanced Premium Tax Credit
if your actual income was lower than you estimated, if you applied for health insurance, you have received too little in credits extended premium tax. Form 8962 this will identify, and you would be due a tax refund.
If your actual income was higher than estimated, if you applied for health insurance, you have received too much in advanced premium tax credits. In this case, some or all of it to pay back usually.
The amount that is capped based on a sliding income scale, must be repaid, but the people whose incomes are charged 400% of poverty or higher, the total amount of tax credit must return.
read :? Credit FAQ Health Insurance Taxes - What if my income changes
Do I need Form 8962 to file
the IRS after you have Form 8962 with the federal income tax return (form 1040, form 1040A or form 1040NR) if any of the following apply to you file:
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you are a premium tax credit ( PTC) under
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an enhanced Premium tax credit (APTC) was paid for you or another person in your control family.
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an APTC was paid for a single from which you told the market that they claim a personal exemption if no one claims otherwise a personal exemption for the Individual.
can be found further instructions for form 8962 here .
Conclusion
your health insurance coverage and premium tax credit information when filing your taxes is new this year. How do you prepare your federal tax file, remember that you report your health insurance for 2014 and file Form 8962 if you have received (or affirm) premium tax credits.
What questions do you have about how to deal with premium taxes if this year filing taxes? Leave a question and we, Äôll help answer.
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