If any of your clients purchased a Marketplace insurance plan for 2014 and received government subsidies (also known as an advanced premium tax credit) to help offset the costs, they need to file a 2014 tax return and report the advanced premium tax credit received. Filing a 2014 federal tax return is also the only way that your clients can qualify for advance payments of the premium tax credits for Marketplace health insurance coverage in 2016.
Even if you previously weren’t required to file taxes due to lower income in the past, you are now required to file your taxes if you received an advanced premium tax credit and want claim a future subsidy. The IRS suggests that you file your taxes before the end of August to avoid a lapse in future premium assistance, which helps you pay for your plan.
The IRS is sending out Letter 5591, asking you to file your taxes and report the advanced premium tax credit you received for your 2014 health insurance if you haven’t done so yet. If your actual income is lower than anticipated when you received your advanced premium tax credit, you may see a bigger premium tax credit when you file your taxes.