Question: I filed my 2015 federal income tax return but didn’t realize I needed to include Form 8962. Can I still receive premium subsidies in 2017?
Answer: If you received advance premium tax credits in 2015, you must reconcile your tax credit amount 2016 year in order to continue receiving advance tax credits next year. Remember, the subsidy you received in 2015 was based on your estimated income for that year. The law requires you to file a tax return at year end and reconcile your estimated income with your actual income. If you had under-estimated your 2015 income, you might have repay some of the 2015 tax credits that you received. If you had over-estimated your 2015 income, you could claim additional tax credit when you filed your return. Either way, the IRS requires this annual reconciliation. People who fail to reconcile the premium assistance they received last year will not be allowed to continue receiving advanced premium tax credits next year.
To continue receiving APTC in 2017, if you haven’t yet filed a 2015 return with a completed Form 8962, you should do so as soon as possible. To do this, you will also need Form 1095-A, which should have been sent to you by Covered California in January with information about your 2015 APTC. If you don’t have form 1095-A, you should call the Covered California Call Center at 800-300-1506 to obtain a copy. As soon as you file your 2015 tax return and completed Form 8962, contact Covered California to update your account to reflect this change.