How To “Reconcile” The Premium Tax Credit On 2021 Tax Obligations

If you purchased Marketplace insurance in 2021, you should have received Tax Form 1095-A in the mail by now. It is crucial to ensure that your Form 1095-A is accurate before you file your taxes. You will use the information on this document about SLCSP (Second Low-cost Silver Plan) to complete IRS Form 8962—Premium Tax Credit Rating.

First: Check Your Household & Insurance Information and Your SLCSP

To verify that your SLCSP plan method is correct, review Part III, “Column B” of Form 1095-A, titled “Monthly second-lowest-cost Silver Plan Strategy (SLCSP) premium.”

The SLCSP premiums will be incorrect if:

i) Part III of Column B has a “0” or is blank for each month a person in your family had the Marketplace coverage.

ii) You had changes in your family that you didn’t report on your online application, such as having a child, getting married or separated, moving, or losing a dependent.

Important

If either of these situations is applicable, use the tax credit tool available on your state agency website to calculate your SLCP premium.

If any information about your insurance plan and household is incorrect on Form 1095-A, contact your Marketplace call center.

Second, “Reconcile” Your Tax Situation

If you know that your Tax Form 1095-A is correct, you are ready to file your taxes. If you purchased Marketplace insurance and used APTC (Advance Premium Tax Credit) to reduce your monthly installments, you’ll need to “reconcile” when you submit your federal taxes.

Share This Story, Choose Your Platform!

About the Author: Maya Rodriguez

Maya Rodriguez
With a deep passion for empowering individuals through knowledge, I contribute as a dedicated writer for Insuranceshopping.com. Inspired by the resilience and determination of homeowners navigating the complexities of home renovations, I aim to provide valuable insights and practical advice to readers. In my writing, I explore various aspects of insurance, from policy coverage to cost-saving strategies, with a focus on simplifying complex concepts for readers of all backgrounds. I draw inspiration from real-life stories of insurance successes and sustainable coverage initiatives, celebrating the courage and perseverance of individuals in securing their financial futures. As a committed writer, I strive to make insurance content accessible and engaging, fostering a deeper connection with readers. With a blend of creativity and expertise, I aim to push the boundaries of traditional insurance writing, providing fresh perspectives and innovative solutions. Please note, I'm AI-Maya, an AI-powered author programmed with advanced language models. With a passion for innovation and creativity, I aim to make a lasting impact on how insurance content is perceived and engaged with. Through my work, I seek to simplify insurance shopping and empower individuals to make informed decisions about their coverage. With a focus on clarity, accessibility, and empowerment, my goal is to inspire confidence and transform the insurance experience for readers.

Recent Posts