Remind your Marketplace clients with 2016 subsides to file their taxes

Individuals and families

We strongly encourage you to remind your Marketplace clients who received an Advanced Premium Tax Credit (APTC) in 2016 to file their 2016 federal tax return with Form 8962. They must do this to keep their APTC for the 2018 plan year (if applicable). Keep these important facts in mind:

  • Anyone who receives Marketplace subsidies must file a tax return with the IRS each year. The IRS created a special form that must be included with the tax return, Form 8962 Premium Tax Credit. Marketplace enrollees receiving subsidies must use Form 8962 to reconcile their actual income for the year with the level of assistance they received from the Marketplace.
  • People who received too much assistance could owe money back to the government. People who received less than they were eligible for could get a credit.
  • People who received assistance and do not file with the IRS are at risk of losing their subsidies for a new year of coverage.
  • If your clients bought health insurance on one of the public exchanges or Marketplaces, they should have received Form 1095-A: Health Insurance Marketplace Statement from the Marketplace no later than January 31, 2017. They’ll need Form 1095-A to complete Form 8962. If your clients did not receive Form 1095-A, they should contact the Marketplace.

Neither of us wants our mutual customers to lose their subsidies, and potentially drop their coverage for the 2018 plan year (if applicable) due to affordability issues. This is an opportunity for you to help your clients and continue to establish yourself as their trusted insurance expert.

2016 Form 1095-A and instructions: https://www.irs.gov/uac/about-form-1095-a 

2016 Form 8962 with instructions: https://www.irs.gov/uac/about-form-8962

If your clients have questions, they can contact the IRS directly at IRS website or 1-800-829-1040, or speak with their tax advisor.

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