Advanced PTC to Offset Premiums or 1040 Credit?
The PTC can be:
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Taken in advance to supplement (i.e., reduce) the monthly Marketplace insurance premiums,
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Claimed as a refundable credit on the 1040 tax return, or
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Some combination of both.
Advise Marketplace of Changes
Clients should be cautioned about the significance of notifying the Marketplace of family and income changes to make sure the advance credit is not excessive and creating a future liability for those who can least afford it.
Taxpayers with the changes in circumstances such as the following should report them to the Marketplace:
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Changes in household income.
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Birth or adoption.
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Marriage or divorce.
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Move to a different address.
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Gaining or losing eligibility for other health care coverage.
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Changes to employment – new or additional job, loss of job, becoming self-employed, etc.