The Reference Section

A collection of wealth improvement articles

IRS Warns Taxpayers Using Premium Tax Credit
File your tax return or else

In order to continue receiving a Premium Tax Credit in 2017 you must file income tax returns as soon as possible. Any delay could stop eligibility for advance payments of this credit during 2017. Remember, these payments help reduce each month’s health insurance premium. It could also generate notices from the IRS to pay back some or all 2016 advance payments of the credit.


Those who use the Affordable Care Act to purchase health insurance on the Marketplace are often eligible to reduce their insurance premium using the Premium Tax Credit. Many had the credit sent directly to their health insurance company each month to reduce their premium. This is called “advance payments of the premium tax credit” by the IRS.

Current Situation

The IRS is now reviews payments of the Premium Tax Credit. To continue receiving the credit in 2017 you must file tax returns. If you filed an extension and do not plan to file your tax return until October 15th, you could be ruled ineligible for the credit in 2017 because you have not yet filed your tax return.


Your insurance premiums could increase in 2017 if you are ruled ineligible for the advance premium credit payment. This could cause financial hardship. You may be asked to repay 2016 Premium Tax Credit Payments as well.


If you received any Premium Tax Credit or expect to do so in the future, you must file tax returns as soon as possible per the IRS.

Call if you need a review of your situation.

Source: IRS Health Care Tip 2015-40