Affordable Care


A tax preparer explains changes to the ACA to a client on the phone.

2018 Tax Reform and the Premium Tax Credit


The Tax Cuts and Jobs Act eliminated the tax penalty for not having health insurance beginning January 1, 2019. However, the new law does not affect the federal Premium Tax Credit. If your client obtained healthcare coverage through the Marketplace or a state exchange, they may still be eligible to receive this tax benefit. Changes to the Individual Shared…

A tax preparer explains shared cost allocation to her client

Form 8962: Premium Tax Credit and Shared Policy Allocation


The Premium Tax Credit (PTC) is a refundable tax credit intended to help low to moderate income earners offset the cost of their Marketplace health insurance premiums. If your client usedhealthcare.gov or their state’s health insurance exchange to get coverage in a qualified health plan, they may be eligible for this credit. The Premium Tax Credit is refundable,…

What to do if client receives a Premium Tax Credit letter


Some taxpayers may receive a letter from the IRS requesting information on advance payments of the Premium Tax Credit. Letter 0012C requires you or the taxpayer to take several steps, and it could mean the client is due a refund. Here is what you should know and what you should do with the letter. Why is my client receiving letter 0012C? The Health Insurance Marketplace…