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Did You Receive a Letter From the IRS Regarding Your Health Insurance Premium Tax Credit?

Some taxpayers may have received a 12C letter about the premium tax credit. You received this letter because the Marketplace has informed the IRS that they made advance payments of the premium tax credit on your behalf (or your family’s behalf) to your insurance company in the prior year. The main reason you possibly received this letter is because you did not include Form 8962 on your prior year tax return, this form reconciles the advance payments of the premium tax credit. The form compares the advance payments to the amount of your credit.

This letter needs to be addressed with the IRS even if you feel it was sent to you in error. In order to correct this issue you must complete the Form 8962 and send it to the IRS with a copy of your Form 1095-A, Health Insurance Marketplace Statement (the IRS does not issue Form 1095-A so you will need to contact your Marketplace directly if you are missing the form). The IRS will then process your tax return based on the information provided in Form 8962, you will not need to amend your return.

Please consult your tax advisor on all the above information.

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