H&R Block: Millions Risk Losing Tax Credit to Help Purchase Health Insurance
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For the estimated 6.5 million taxpayers who received insurance via the federal or state marketplaces, one requirement for those who also received an Advance Premium Tax Credit (APTC) is to file a tax return to reconcile the amount received and ensure the credit was accurate. If they do not, they could risk losing their financial assistance, in the form of an
The reconciliation form, Form 8962, includes information from the marketplace provided to both the taxpayer and the
"Those who received an advance premium tax credit last year and do not file a tax return could be in jeopardy of losing this help paying for their health insurance coverage in the next open enrollment," said
November could bring a surprise
For those who continue to have coverage and do not file, they may face a surprise when they try to re-enroll in coverage during this fall's open enrollment period, which begins
Just because open enrollment isn't until November, doesn't mean these taxpayers should wait to file a return. Often, these taxpayers could qualify for certain credits and deductions that could result in a refund. Filing a return also creates the most accurate picture of income for the next open enrollment, which is important for correctly estimating
The
"It will be important for these taxpayers to file a completed return," Ciaramitaro said. "And the sooner the better. First, they may receive a refund. Second, this will ensure they continue to receive ongoing help paying for their health insurance and finally, when it comes time to re-enroll they will have a better income baseline in order to apply for next year's advance premium tax credit."
Taxpayers can find their local
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