The Supreme Court decision to uphold the validity of subsidies in states using the federally run marketplace means millions of Americans in nearly three dozen states will continue having access to affordable health insurance plans. Tax season 2015 will be the second year when taxpayers will be reporting their health insurance status on their tax returns, and we expect that complying with the Affordable Care Act will be an even more straightforward process this time around.
We’d like to take this opportunity to remind marketplace enrollees of a few quick tips to make sure they are maximizing their tax returns. Marketplace enrollee’s who receive a tax credit should keep their financial information and status changes updated in the system so their tax credit is kept as accurate as possible throughout the year. This will ensure you’re getting as much help as you’re eligible for and also avoid having to pay back any extra tax credits.
One tip is to take only half of your subsidy upfront if you are able, so come tax season, you will get the rest of your subsidy with your tax return and there is a substantially lower chance you will have to pay back.
Finally, if you are uninsured and missed the 2015 open enrollment, under the Affordable Care Act, certain changes to your life circumstances can trigger what is considered a “qualifying life event” that may make you eligible to sign up for health insurance outside of the annual open enrollment period.