Although we live in the information age and the world of convenience, there is yet another task that newly-married couples need to address after writing their thank you cards and perhaps the bride changing her maiden surname to her husband’s surname with the Social Security Administration.
The new task to complete is a health insurance review if you are enrolled in coverage through the Health Insurance Marketplace and you receive premium assistance in the form of advance payments of the premium tax credit. Don’t forget that your premiums were based on your family composition and household income. This could all change due to the change in your marital status and household income.
It is important to report life changes – known as changes in circumstances – to your Marketplace to get the proper type and amount of financial assistance and to avoid getting too much or too little in advance. Reporting changes in circumstances will allow the Marketplace to adjust your advance credit payments. This adjustment will help you avoid getting a smaller refund or owing money that you did not expect to owe on your federal tax return.
To report changes and to adjust the amount of your advance payments of the premium tax credit you must contact your Health Insurance Marketplace. Be sure to report all changes directly to that Marketplace because they can affect both your coverage and your final credit when you file your federal tax return.
Other changes you should report to the Marketplace include:
- Birth or adoption
- Marriage or divorce
- Moving to a different address
- Increases or decreases in your household income
These changes may also open the door for the Marketplace special enrollment period that permits health care plan changes. In most cases, the special enrollment period for Marketplace coverage is open for 60 days from the date of the life event.
The Premium Tax Credit Change Estimator can help you estimate how your premium tax credit will change if your income or family size changes during the year. This estimator tool does not report changes in circumstances to your Marketplace. Because these tools provide only an estimate, you should not rely upon them as an accurate calculation of the information you will report on your tax return. You should use these estimators only as a guide to assist you in making decisions regarding your tax situation.
In addition to the above, newly married couples need to review beneficiary forms, wills, trust agreements, and other financial matters where a spouse was named.
If you want to discuss your business or personal tax planning, tax preparation and other financial concerns with an experienced tax professional, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.