The Affordable Care Act (ACA) provides premium tax credits to help lower the cost of health insurance for eligible households. The premium tax credit – also known as PTC – is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.
According to the IRS, you must reconcile the premium tax credit on your individual federal tax return. Form 1095-A is needed to reconcile the premium tax credit. If at the end of the year you’ve taken more premium tax credit in advance than you’re due based on your final income, you’ll have to pay back the excess when you file your tax return. If you’ve taken less than you qualify for, you’ll get the difference back.
Easy Tax Service in Prescott Valley can help if you have any questions about the ACA premium tax credit. Our tax preparers have over fifty years of combined experience preparing taxes. Easy Tax Service is open year-round and committed to providing high-quality tax preparation service at a price you can afford. Please give us a call at 928-775-7000 to schedule an appointment today.