Customers who have a health insurance plan through Pennie and used advanced payments of the premium tax credit (APTC) to lower their monthly payment will have to "reconcile" when they file their federal taxes. This means they will compare two figures:
- The amount of premium tax credit used in advance during the year; and
- The premium tax credit they actually qualify for based on the final income for the year.
Any difference between the two figures may affect their refund or tax owed when they file their taxes the following year. Specifically for 2021 tax returns, the amount of savings provided back to customers from the American Rescue Plan, in some cases, allowed for customers to receive more APTC throughout the year. Any APTC received due to the implementation of the American Rescue Plan will be subject to the IRS’ reconciliation process.
The IRS has developed helpful information on how the Affordable Care Act (ACA) may impact customers’ federal tax return. Customers can visit www.irs.gov/aca or https://www.irs.gov/pub/newsroom/fs-2022-13.pdf for an extensive list of questions and answers and other resources. The IRS can also be reached at 1-800-829-1040.