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File Now to Stay Eligible for Advance Payment of Premium Tax Credit

The Internal Revenue Service is sending letters to taxpayers who received advance payments of the premium tax credit in 2015 – but haven’t filed their tax return. Taxpayers must file a return to reconcile any advance credit payments they got in 2015 and to remain eligible to get premium assistance in 2017.

Taxpayers were sent one of two IRS letters, numbered 5858 or 5862, which remind them to file their 2015 return and to include Form 8962, Premium Tax Credit, in the return. A return has to be filed within 30 days of delivery to the taxpayer in order to ensure continuity of coverage and premium assistance in 2017.

Actions needed on the taxpayer’s part varies slightly, depending on which letter is received. Taxpayers receiving a 5858 letter should:

  • Read the letter carefully.
  • Review the situation to see if they agree with the information in the letter.
  • Use the Form 1095-A received from the Marketplace to complete the return. If they need a copy of Form 1095-A, they can log in to their HealthCare.gov or state Marketplace account or call the Marketplace call center.
  • File their 2015 tax return with Form 8962 as soon as possible, even if they don’t normally have to file.

Taxpayers who have already filed a 2015 tax return with Form 8962 can disregard the letter.

Here’s what to do if a taxpayer receives a 5862 letter:

  • Read the letter carefully.
  • Review the situation to see if they agree with the information in the letter.
  • Use the Form 1095-A from the Marketplace to complete Form 8962. For a copy of Form 1095-A, log in to HealthCare.gov or state Marketplace account or call the Marketplace call center.
  • File a 2015 tax return with Form 8962 as soon as possible, even though they have an extension until Oct. 17, 2016, to file.
  • Disregard the letter if a 2015 tax return has already been filed with Form 8962. 

 

Bob Williams

Forget genes; I’ve got words in my DNA. Communication has been part of who I am nearly all my life. From a long career in radio news to another one in newspapers – and a University of Georgia journalism degree sandwiched between the two – language has been my life. I’ve also been fortunate to have learned the tax business from the ground up here at Drake, starting with 1040.com online forms some years ago before moving on to work on the Web. In all things tax-ish, we aim to give you tools you can use.

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