Advance Premium Tax Credit

If you are getting a tax credit to help you pay for your health insurance premiums throughout the year, there are two important things you’ll need to remember to do:

This includes changes to your home address, family size, income, or access to health insurance (such as through a job, Medicare, and other sources).

If you have changes but don’t update your information, you could end up owing the IRS money at tax time. 

You can update your information online through your account at MAhealthconnector.org. Make sure to submit any changes you make on the Rights & Responsibilities page.

You must file federal income taxes for every year that you get tax credits. You will need to file even if you haven’t had to file in the past, or wouldn’t normally need to file because of your income.

• We’ll send you a 1095-A form at the end of January. This form shows how much was paid to your insurance company to help with the cost of your health coverage.
• You will use the information on your 1095-A to fill out IRS Form 8962 when you file your taxes.

Why is this important?

• You’ll need to file taxes at the end of the year so that the IRS can be sure that you got the right amount of tax credit based on what your income was that year. This process is called reconciliation.
• If you’re getting too much tax credit now because your income is higher than you said it would be when you applied, you may owe some of it back at tax time.
• If you’re getting too little of a tax credit now because your income is lower than you said it would be when you applied, you may owe less on your taxes or get a refund.
• If you don’t file taxes for the year that you received a tax credit, you won’t be able to get a tax credit again in future years. If you can’t get a tax credit for this reason, your coverage could become unaffordable.

You can change the amount of tax credit that you use during the year at any time. If you choose to use less than the full amount that you qualify for, your monthly premium will be higher each month, but you will also lower your risk of having to pay money back to the IRS. You can change your tax credit amount online at MAhealthconnector.org. Log into your account and go to the My Enrollments section, then click Change Tax Credit.

Many people can get free tax help from programs such as Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). Call the IRS hotline at 800-906-9887 to find a location near you. You can also visit www.MAhealthconnector.org/taxes for more information on how to get free help with your taxes.