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With over 15 million Americans receiving Federal Subsidy’s (Advanced Tax Credits) there are some things you need to remember to keep your subsidy.
- File your 2014 income taxes. The IRS has published a document that says if you have not filed your 2014 income taxes by August 31 you run the risk of not being eligible for a subsidy in 2016. Even if you filed an extension (which is due by October 15) you run this risk. The IRS is telling us that unless your filing does not reach them by August 31 they will not be able to verify that you filed your taxes when you reapply for your 2016 subsidy.
- Report change of life issues. One of the requirements of a Federal Subsidy is that you promised to notify the Federal Marketplace of changes to the answers you gave on your application. You need to report these changes so the Federal Marketplace can give you an accurate tax advance. Without making these changes you may be required to pay back some or all of your Federal Subsidy. Reporting a life change can be done with the assistance of your agent or by calling the Marketplace directly at 800-315-2596.
- Annually refile for your Federal Subsidy. Every year during Open Enrollment (November 1 through January 31) you will need to refile for your Federal Subsidy. Policies renew every January 1, and with the renewal comes rate adjustments. Usually in the form of an increase. Your Federal Subsidy calculation is partially based on the premium of the second lowest Silver plan in your area. If this is a higher premium than last year, your new subsidy will go up. In past years this meant that your current premium stayed about the same. If you don’t refile you will pay a higher premium.
- Keep in touch with your agent. Your agent will have the answers you need when it comes to your questions. Your agent is there to assist you. If your agent is no longer available you can always switch. Feel free to call Nichols Insurance for an agent that you can rely on.
Bill Askins / Advisor