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.

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About the Author: Maya Rodriguez

Maya Rodriguez
I’m a writer and insurance researcher at InsuranceShopping.com, where I create guides and news to help U.S. consumers compare auto, home, health, life, and Medicare plans with confidence. I focus on breaking down complex policy changes,like new Medicare Advantage carriers or regional health insurance options,into clear, actionable advice. My background includes years of analyzing insurance markets and regulatory updates, which allows me to explain how these shifts affect your coverage and wallet. I’m here to give you the facts you need to make informed decisions, whether you’re shopping for your first policy or reviewing your current plan.