The IRS Recommends Getting a “PTC Check-Up”

This Wednesday marks one full month since the end of tax season for the majority of the country, and that means that many tax professionals are returning from a well-deserved vacation. Even for those who haven’t had a chance to get away from the office, the lull in the action is certainly welcome. To take advantage of the post-season downtime, the IRS issued a health care-related tax tip for taxpayers that will hopefully help tax professionals have an easier time next tax season. The agency recommended that eligible taxpayers who applied for the premium tax credit (PTC) and received an advanced payment to help purchase coverage through the Marketplace should perform a “PTC Check-up.” Since advanced payments are based on an estimation of a taxpayer’s estimated PTC –which is based on an estimate of annual household income – keeping track of changes in income can help recipients avoid an unexpected tax bill next April. Some clients are always on top of their tax-related responsibilities, and, unfortunately, some aren’t. For those who might need a little help, the IRS provided links to their Premium Tax Credit Change Estimator and to the Health Insurance Marketplace. Source: Internal Revenue Service