If you had a Marketplace plan and used the premium tax credit to lower your monthly payment, you’ll have to “reconcile” When you file your federal taxes. This means you’ll compare:
The amount of the premium tax credit you used during the year. (This was paid directly to your health plan so your monthly payment was lower.)
The premium tax credit you qualify for is based on your final income for the year.
Any difference between the two figures will affect your refund or tax owed.
Notice:
You should get your Form 1095-A in the mail by mid-February. It may be available in your Marketplace account anytime from mid-January to February 1. If you don't get it, or it's incorrect, contact me and I should be able to get a copy for you that I can email to you.
How to reconcile your premium tax credit
Get your Form 1095-A.
Print Form 8962 (PDF, 110 KB) and instructions (PDF, 348 KB).
Use the information from your 1095-A form to complete Part II of Form 8962.
Complete all sections of Form 8962. On Line 26, you’ll find out if you used more or less premium tax credit than you qualify for based on your final 2023 income. This will affect the amount of your refund or tax due.
Include your completed Form 8962 with your 2023 federal tax return.
What happens if you don’t reconcile your taxes
If you had a 2023 Marketplace plan but didn’t file and reconcile your 2022 taxes, you may lose any savings you’re getting for your 2024 plan.
You’ll get a letter from the Marketplace with details about what you need to do.
You may also get “Letter 12C” from the IRS.
If you haven’t filed your 2023 tax return — or filed a return but didn’t reconcile the premium tax credit for all household members — you must do so immediately.