April 15 is just around the corner, but there is still time to make sure clients have submitted the proper forms to secure the credits they are due. The IRS recently published a tax tip checklist to help taxpayers determine if they are eligible to receive the Premium Tax Credit (PTC). If a client – or one of their family members – purchased health insurance from a Marketplace, they need to file a Form 8962 to see if they qualify.
The following are the prerequisites provided by the IRS:
For at least one month of the year, all of the following were true:
- An individual in your tax family was enrolled in a qualified health plan offered through the Marketplace.
- The individual was not eligible for minimum essential coverage, other than coverage in the individual market.
- The portion of the enrollment premiums for the month for which you are responsible was paid by the due date of your tax return.
To be an applicable taxpayer, you must meet all of the following requirements:
- For 2014, your household income is at least 100 percent but no more than 400 percent of the Federal poverty line for your family size.
- No one can claim you as a dependent on a tax return for 2014.
- If you were married at the end of 2014, you must generally file a joint return. However, filing a separate return from your spouse will not disqualify you from being an applicable taxpayer if you meet certain requirements.
To read the full article, click here.
Source: Internal Revenue Service