By Steve Julal
If you filed for an extension of time to file your 2016 federal tax return and you also chose to have advance payments of the premium tax credit made to your coverage provider, it’s important you file your return sooner rather than later. Here are four things you should know:
1. If you received a six-month extension of time to file, you do not need to wait until the October 16, 2017, due date to file your return and reconcile your advance payments. You can–and should–file as soon as you have all the necessary documentation.
2. You must file to ensure you can continue having advance credit payments paid on your behalf in future years. If you do not file and reconcile your 2016 advance payments of the premium tax credit by the Marketplace’s fall re-enrollment period–even if you filed for an extension–you may not have your eligibility for advance payments of the PTC in 2018 determined for a period of time after you have filed your tax return with Form 8962.
3. Advance payments of the premium tax credit are reviewed in the fall by the Health Insurance Marketplace for the next calendar year as part of their annual re-enrollment and income verification process.
4. Use Form 8962, Premium Tax Credit, to reconcile any advance credit payments made on your behalf and to maintain your eligibility for future premium assistance.