Ensure You Avoid Too Much or Too Little Advance Premium Tax Credit

If you client 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 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.

Changes in circumstances that should be reported to the 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.

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