Determine whether you are eligible for a premium tax credit You may be eligible for a premium tax credit if you meet the following criteria:
- You are not eligible for health insurance through an employer or a government-run program such as the Veterans Administration, Medicare or CHIP.
- You bought health insurance for 2014 through the government-run marketplace in your state. (This is a must.)
- Your income falls within the eligibility limits -- a maximum of $45,960 for an individual; $62,040 for two; and $94,200 for a family of four.
- You do not file a "Married Filing Separately" return.
- No one else can claim you as a dependent on his or her taxes.
- You did not elect to get the credit applied to the monthly premiums you paid for the health insurance you bought through the healthcare marketplace in your state. That was an option you had, says Jackie Perlman, principal tax research analyst with The Tax Institute at H&R Block.
You need two new forms when filing your taxesNext you need to file a tax return. When preparing your taxes, there are two forms you will need:
- Premium Tax Credit form, Form 8962.
You must file a tax return to get your premium tax credit If the amount of the credit to which you're entitled is more than the amount you owe in taxes, you will receive the difference as a refund once you file your taxes, Perlman says. If you do not owe any taxes, you get the full amount. Because you had to estimate your income when you bought health insurance, you may have earned more money than you thought and took a larger subsidy than you were entitled to. In this case, you will have to pay back the amount of the subsidy that is greater than what you were eligible for.
It's also possible that your family circumstances changed over the year. Changes to your family's income or size could affect how much credit you will receive when you file your tax return. The changes could increase your refund or balance due or they could decrease it. H&R Block projects 3.4 million taxpayers will have to pay back part of their premium tax credit.You may not need to file taxes if your income falls below the filing threshold. However, you will need to file a return in order to get your credit, Perlman notes.