If you have clients who filed for an extension of time to file their 2015 returns, and they receive advance payments of the premium tax credit, those taxpayers should file their income tax return sooner rather than later.
PTC recipients must file a 2015 return and reconcile their advance payments to ensure they can continue receiving the advance payments in the future. Advance payments of the tax credit are reviewed every fall by the Health Insurance Marketplace for the next calendar year. It’s part of the annual re-enrollment and income verification process. But if your applicable clients don’t file and reconcile, they won’t be eligible for advance payments of the premium tax credit in calendar year 2017.
Use Form 8962, Premium Tax Credit, to reconcile any advance payments made on your clients’ behalf, and to maintain their eligibility.
PTC clients who got extensions to file do not need to wait until October to e-file their income tax returns. You can remind your clients that they can – and should – e-file as soon as they have the necessary documentation, in order to avoid being disqualified for advance payments of the credit.