If you — or anyone on your tax return — purchased health coverage from a state or the federally-facilitated Health Insurance Marketplace and are eligible for the premium tax credit, you will have to file Form 8962, Premium Tax Credit, with your federal income tax return in 2015.
When you applied for Marketplace coverage in 2014, you could have chosen to have advance payments of the premium tax credit paid directly to your insurance company to lower your outof-pocket cost for monthly premiums during the year. If you chose this option, you must file a tax return and attach Form 8962, Premium Tax Credit.
You can electronically file Form 8962, Premium Tax Credit, along with your federal tax return. Filing electronically is the easiest way to file a complete and accurate tax return. By electronically filing your tax return, many common errors may be avoided or corrected by the computer software. Depending on your income, you may even qualify to e-file for free by using Free File tax software.
The premium tax credit is a credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace.
The Health Insurance Marketplace is the place where you will find information about private health insurance options, purchase health insurance, and obtain help with premiums and out-of-pocket costs if you are eligible. Learn more about the Marketplace at HealthCare.gov.
When you apply for coverage in the Marketplace, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim for the tax year, using information you provide about your family composition and projected household income. Based upon that estimate, you can decide if you want to have all, some, or none of your estimated credit paid in advance directly to your insurance company to be applied to your monthly premiums. If you choose to have all or some of your credit paid in advance, you will be required to reconcile on your income tax return the amount of advance payments that the government sent on your behalf with the premium tax credit that you may claim based on your actual household income and family size.
The actual premium tax credit for the year will differ from the advance credit amount estimated by the Marketplace if your family size and household income as estimated at the time of enrollment are different from the family size and household income you report on your return. The more your family size or household income differs from the Marketplace estimates used to compute your advance credit payments, the more significant the difference will be between your advance credit payments and your actual credit.
Only individuals who purchased coverage through the Health Insurance Marketplace may be eligible to claim a premium tax credit when filing a tax return in 2015.
In general, you or anyone on your tax return who enrolled in coverage through the Marketplace in 2014 may be eligible to claim a premium tax credit if you:
Additionally, the person on your tax return who enrolled must not have been eligible for other qualifying coverage, such as government-sponsored coverage or employer-sponsored coverage for the same months.
If you chose this option, you must file your tax return and attach Form 8962, Premium Tax Credit, to reconcile any advance payments made directly by the government to your insurance provider during the year, even if you do not otherwise have to file a tax return. You do this by comparing any advance credit payments with the amount of the premium tax credit actually allowed on the federal income tax return.
If the premium tax credit computed on your federal income tax return is more than the advance credit payments, the additional amount of the credit will increase your refund or lower the amount of tax you owe.
If the credit on the tax return is less than the amount paid in advance, you will have to repay excess advance payments, which will increase the amount you owe or result in either a smaller refund or a balance due.
The Marketplaces are required to send Form 1095-A, Health Insurance Marketplace Statement, to individuals by Jan. 31, 2015. This form includes information about your coverage and any advance credit payments made directly to your insurance provider in 2014. Contact the Marketplace directly if you did not receive your Form 1095-A. You need Form 1095-A to accurately complete your tax return.
If you have minimum essential coverage, you will check a box indicating that you do have minimum essential coverage when you file your 2014 federal income tax return. If you — or anyone on your return — purchased a health plan through the Marketplace, this means you have minimum essential coverage. In addition to filing Form 8962, Premium Tax Credit, with your tax return, you will simply need to check a box on your tax return to indicate that you and your dependents had qualifying coverage for each month of 2014.
For more information about the premium tax credit, view Publication 5187, The Health Care Law: What’s New for Individuals & Families, or visit IRS.gov/aca. For more information about the Marketplace, visit HealthCare.gov or your state Marketplace website.
See: Explanation of the Affordable Care Act (Obamacare) Penalty for Individuals and Families
See: What Businesses Need to Know About the Affordable Care Act (Obamacare)
For help with the Affordable Care Act (Obamacare), or another IRS matter, contact us now at 1-949-260-4770 for a FREE consultation with our CPAs and former IRS Agents.
We look forward to serving you.
Very good experience and glad I made the decision to use this company. Michael was professional and courteous in all of my dealings with him. My tax dilemma was quickly resolved and Michael even waived much of his normal fee. Where else have you heard of a business doing that? Without question, I would recommend Landmark Tax Group for anyone seeking a fair resolution for a tax problem.
Great service! Michael really knows his stuff and goes above and beyond. They delivered more than they promised and helped me get an AWESOME resolution to my case. I highly recommend them.
I worked with Landmark Tax Group to help sort through my LLC, 501c(3) and personal finance questions. They were prompt, friendly and extremely knowledgeable. This was the best experience I’ve had with a tax company. I would HIGHLY recommend them!
Great service!!! Very diligent and most importantly high integrity. One of those rare occasions when someone is looking out for your best interest.
Michael was fantastic! He understood my case very quickly, got right to work and was super prompt with communications. His professionalism and his friendly demeanor immediately put me at ease. I whole heartedly recommend contacting them if you’re in need of advice and assistance.
I received great advice in how to deal with the FTB, i don’t review often, but when someone is honest and legitimate, they do deserve a review. My questions were answered, and if i didn’t quite understand, Micheal was more than willing to give me follow-up answers to better help me. I highly recommend Landmark Tax Group, just for the mere fact that they treat you as a human being, Not a cash cow.
I had some returns from previous years to complete after receiving a hefty bill from the California Franchise Tax Board. Michael was prompt in answering my questions and very helpful and reassuring. We had several back and forth communications and this was all done for free since they do not prepare tax returns. He gave me some contacts and advice and now I’m on my way to getting my situation resolved. I’m very thankful for his advice and guidance.
While Michael’s scope of practice meant that we ultimately could not work directly to resolve the issue I was having, he was very prompt, professional, generous and kind in taking time out of his schedule to consult with me, refer me to his network of colleagues- not just once, but a second time even months after. Some professionals are just after services and compensations but Michael strikes me as someone who genuinely cares about your situation and wants to see to it that it gets resolved. These other reviews speak to that as well. You never want to be in a situation where you need to be looking up tax help, but God forbid you ever are, Michael is the person you want in your corner!
Michael and Landmark Tax Group were simply awesome. I like so many others had a year’s old tax issue arise with California FTB. I no longer live there which compounded the stress of the situation. The state had seized monies and filed a lien. After a call to an online tax relief place and some sketchy phone calls I was so happy to find Michael and immediately felt in good hands… at a time of considerable panic.
Fast forward to today and with his help I am totally debt free. He saved me $23,000
I highly recommend Michael and Landmark Tax Group
Michael Raanan is an angel! Michael went above and beyond for me. He was very knowledgeable, professional and very thorough! He is easy to talk to and amazing at what he does. I have a feeling that everyone at landmark tax group shares this way of professionalism! I highly recommend coming here for any and all of your tax help. They will help you and you will be more than pleased with them. 🙂
After calling the other highly advertised tax assistant agency’s and being disappointed with how they responded to my tax matter, I feel fortunate to have found out about the Landmark Tax Group. Michael was very understanding of my situation, and I felt very comfortable dealing with him. He was very knowledgeable and professional in handling our tax issue in a timely manner. I would highly recommend The Landmark Tax Group to anyone who needs assistance in dealing with the IRS.
Wow, just wow. I called Michael today to ask about some major tax issues I had with a defunct corporation I’d started years ago. Michael talked to me for about half an hour, walking me through options and generally helping me understand my options.
Because of him, I’m going to rest nicely tonight for the first time in weeks. It was great to hear that he used to work in IRS collections for 8 years too… which made me feel a lot more secure in his answer.
In all, I’m completely stunned by the level of service he gave to a random stranger who called in and wasn’t going to turn into any revenue for him. I have to imagine that his level of service for actual customers is unreal.
Fast, dependable, reliable, full transparency. Michael Raanan of Landmark Tax Group allayed my fears spending the rest of my senior years paying my tax debt. As a result of his extensive knowledge of the tax code, the right questions to ask, and his dedication to my case, I had information, resolution and a plan of action within 24 hours, start to finish. Amazing! I highly recommend Landmark Tax Group!
We were very pleased with the expert assistance we received from Michael Raanan at Landmark Tax Group. In a matter of months we had a resolution to our IRS tax issue. He was very knowledgeable, professional, explained things in easy to understand terminology & was very easy to discuss our tax issues with. We called around to other tax groups & just felt the most comfortable speaking & working with Michael. We are happy to recommend him & his firm.
Great place for tax [relief] advice. Even if they don’t see a need for you to use and pay for their service, they’ll still give you excellent advice and direction at no cost. They are worth a call.
Michael Raanan represents the highest level of professionalism, integrity, decency, and true concern for his clients. His advice every step of the way was right on target. The end result was a savings of $13,000 on my taxes.
I have already referred him to the other members of my financial team and have complete confidence in referring any clients to him. He is a shining star in his field.
Oh, did I mention how reasonable his fees are? Exceptional considering the amount of attention he provides.
