Is your health insurance through ‘the Marketplace”, also known as Obamacare, or Healthcare.gov? If so, you need to make sure that the information you put on your application when you first applied is still correct. If it’s not , you could find yourself owing a lot of money when you file your tax return next year. This unfortunate situation is not uncommon. Many people estimate their income too low and get a shock every year at tax time when they are expecting a refund and end up with a balance due.

How can you protect yourself from unpleasant surprises?

Go to www.healthcare.gov, log in, find your current application, and check the income information. If you’re not sure about the numbers or information about who is getting coverage is still accurate, then click on Make Changes. You will have to go through the entire process again, but it could save you a lot of money later.

Things to check

• Is your income correct?
• Do you need to add or remove anyone from your household?
• Do you need to include income from anyone else on your application such as a working dependent? You DO if they are required to file a tax return. For example: If your high schooler is on your policy and they work enough to be required to file taxes, you must include that income. So you will need to estimate that income.
• Social security numbers
• Whether you are eligible for insurance from other places or not

When you go back and double check your information, you also have the option of changing the amount of credit that is paid towards your insurance. This can be helpful if you are unsure about your income and don’t want to risk having to pay back the advance payments. You can change this even if you don’t change any other information, but you do have to click through the entire application again. Be sure to click YES on the social security number question or it will not proceed.

For example: If you qualify for $1000 per month credit, you can choose to only receive $900 to give yourself a little cushion. Yes, you will have to pay the difference, but it’s better to pay it during the year than later when you may not have the money readily available.

If you receive LESS than the amount you qualified for DURING the year, you will get that money as a credit on your tax return.

For example: You qualified for $1000/month, but only received $900, so you will get that extra $1200 ($100 X 12) as a refund or applied to your taxes owed, if you owe.

Save yourself some trouble, and double-check now.

Save your 1095 Form

Also, even if you only received ONE month of premium , you will need your 1095-A form that will come in the mail from the IRS, so be sure to save that for when you do your taxes. Many people throw it out and then show up at the tax preparer and have to call the IRS for that information. It’s much faster to file your taxes if you have the form.

For more information https://www.irs.gov/affordable-care-act/individuals-and-families/the-health-insurance-marketplace