The IRS issued a reminder that individuals who received advance payments of the 
Premium Tax Credit (PTC) in 2014, for insurance they purchased through a marketplace or exchange, should file their 2014 federal tax return as soon as possible.
Those who fail to file a 2014 return will not be eligible to receive advance payments of the PTC in 2016. In addition, non-filers may need to pay back some or all of their 2014 advance payments.
The IRS is currently sending Letter 5591 to individuals who received 2014 PTC advance payments but have not yet filed a 2014 tax return, to remind them of the importance of filing their tax return along with Form 8962.
The letter encourages taxpayers to file within 30 days of the date of the letter in order to avoid a gap in receiving advance payments of the PTC in 2016.
Individuals who are not eligible for advance payment of the PTC will be responsible for the full cost of the monthly premiums and all covered services.
Individuals who chose to have advance payments of the PTC sent directly to their insurer are required to file a tax return and to complete Form 8962 to reconcile the advance payments to the actual credit. This applies even if the individual is not otherwise required to file a tax return.
Individuals who received advance payments of the PTC should have received Form 1095-A, a Health Insurance Marketplace Statement, from their Marketplace. The Form 1095-A provides information the taxpayer will need to complete Form 8962.
Anyone with questions about the information on Form 1095-A for 2014, or about receiving the form, should contact their Marketplace directly.
