Smart Benefits: File 2014 Taxes -- or Risk Losing Subsidy

Smart Benefits: File 2014 Taxes -- or Risk Losing Subsidy

Taxpayers who received advance payments of the premium tax credit in 2014 should file their 2014 tax returns by the end of the summer to continue to receive advance payments next year for exchange coverage. 

This summer, the IRS has been sending Letters 5591, 5591A, and 5596 to taxpayers who received 2014 advance payments, but haven’t yet filed their tax return, to remind them to file their 2014 federal tax return along with Form 8962, Premium Tax Credit. The letters encourage taxpayers to file within 30 days to increase their chances of avoiding a gap in receiving assistance in 2016 since exchanges will determine eligibility for 2016 advance tax credit payments and cost-sharing reductions this fall.

That means even those who missed the deadline or received an extension until October 15 should file their returns as soon as possible, according to the IRS. 

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Help with understanding the IRS letters is available here.

Rob Calise is a founding partner of Cornerstone Group, where he helps clients control the costs of employee benefits by focusing on consumer driven strategies and on how to best utilize the tax savings tools the government provides. Rob serves as Chairman of the Board of United Benefit Advisors, and is a board member of the Blue Cross & Blue Shield of RI Broker Advisory Board, United HealthCare of New England Broker Advisory Board and Rhode Island Business Healthcare Advisors Council. He is also a member of the National Association of Health Underwriters (NAHU), American Health Insurance Association (AHIA) and the Employers Council on Flexible Compensation (ECFC), as well as various human resource associations. Rob is a graduate of Bryant University with a BS in Finance.