If you purchased 2016 health care coverage through the Health Insurance Marketplace, you may have chosen to have advance payments of the premium tax credit paid to the insurance company to lower the monthly premiums. If this is the case, it’s important to let the Marketplace know about significant life events, known as changes in circumstances.
These changes – such as those to income or family size – may affect the premium tax credit. Reporting the changes will help avoid getting too much or too little advance payment of the premium tax credit.
Report Life Events to the Marketplace
Changes in circumstances that should be reported to the Health Insurance Marketplace include:
- an increase or decrease in income
- marriage or divorce
- the birth or adoption of a child
- starting a job with health insurance
- gaining or losing eligibility for other health care coverage
- change of residence
Learn more from the IRS
- Important Information about Advance Payments of the Premium Tax Credit and Your Tax Return
- The Premium Tax Credit
Or, contact Torkelson & Associates CPAs, LLP, a full service accounting firm dedicated to providing our clients throughout Northern California with professional and personalized guidance on a wide range of financial, tax, and business services.