Information from IRS.gov
If you are receiving a Tax Credit, Report Changes in Circumstances to the IRS
If your 2016 health care coverage was purchased through the Health Insurance Marketplace, you may have chosen to have advance payments of the premium tax credit paid to your insurance company to lower your monthly premiums. If so, remember to let your Marketplace know about significant life events, known as changes in circumstances.
These changes may affect your premium tax credit. Reporting the changes will help you avoid getting too much or too little advance payment of the premium tax credit. Getting too little could mean missing out on premium assistance to reduce your monthly premiums. Getting too much means you may owe additional money or get a smaller refund when you file your taxes. And if your income for the year turns out to be yoo high to receive the premium tax credit, you will have to repay all of the payments that were made on your behalf, with no limitation.
Changes in circumstances that should be reported to the Marketplace include:
- an increase or decrease in your income
- marriage or divorce
- the birth or adoption of a child
- starting a job with health insurance
- gaining or losing your eligibility for other health care coverage
- changing your residence
