Summertime Tax Tips: Keeping Your Health Insurance Updated

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With the summer in full swing, it can be easy to abandon that pesky “to-do” list in favor of beach days, vacation or just relaxing at home. But this is also the time when it really pays off to be tax savvy — especially when it comes to your health insurance. A small step will yield a potentially big return now and all throughout 2016.

Here are a few things you can do right now to make sure you get the most out of your refund next year:

Have health insurance through the Marketplace?

  • Update your income: Have you had a change in your income or household size, such as getting married or having a baby, since Open Enrollment? If so, you should notify the Marketplace about these changes so they can adjust the information used to calculate your premium tax credit which helps you pay for health insurance. Keeping this information up to date will  help ensure you get the most out of your refund.

Still uninsured?

  • Change in life circumstance: If you recently got married, divorced, had a baby or experienced any of qualifying life changes – you may be eligible for a Special Enrollment Period. You can see if you qualify on healthcare.gov.

Haven’t filed your taxes yet?

  • Extensions: Haven’t filed your taxes yet? While you officially have until October 15, if you received a subsidy for Marketplace health insurance in 2014, the IRS is encouraging you to file as soon as you can so that you qualify for your advanced premium tax credit to help you pay for 2016 health insurance. Need assistance getting prepared? Checkout the TurboTax Document Finder so you know which documents you’ll need to have handy. If you wait until October, you may face a lapse in your subsidy.
  • Late filing: If you haven’t filed your taxes and haven’t applied for an extension, you should file as soon as you can anyway to stop penalties and interest from accruing if you owe money.  Who knows you may even qualify for a tax refund if you made less money than expected when you received your advanced premium tax credit..

As always, TurboTax has you covered. If you have more questions on the Affordable Care Act, and how it impacts your taxes, you can get your questions answered at TurboTax.com or to use our free tax tools.

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