Health Care Tax Tip: Report Life Changes to the Marketplace
Nov 16, 2015
If you are enrolled in insurance coverage through a government Health Insurance Marketplace, it is particularly important you report changes in circumstances to the Marketplace to prevent unwelcomed surprises when your tax return is prepared. Plans and prices change every year and you may find a new health care plan that’s more affordable or works better for you, especially if your expected income or household for 2016 will change.
Reporting the changes will help you avoid having too much or not enough premium assistance paid to reduce your monthly health insurance premiums. Getting too much premium assistance means you may owe additional money or get a smaller refund when you file your taxes. On the other hand, getting too little could mean missing out on monthly premium assistance that you deserve.
Changes in circumstances that you should report to the Marketplace include:
Marriage or divorce- Birth or adoption of a child
- Changes in income
- Getting health coverage through a job or a program like Medicare or Medicaid
- Changing your place of residence
- Having a change in disability status
- Gaining or losing a dependent
- Other changes that may affect your income and household size
There is still time left this year to report changes. Update your income and household information by December 15, 2015. This will ensure any changes to your savings and plan take effect January 1, 2016.
By: Katie Mokry, Senior Accountant
Categories: Healthcare & Dentistry