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Yearly Archives: 2014
HCTT-2014-17: Moving Can Affect Your Premium Tax Credit
If you moved recently, you’ve probably notified the U.S. Postal Service, utility companies, financial institutions and employers of your new address. If you get health insurance coverage through a Health Insurance Marketplace, the IRS reminds you about one more important notification to add to your list – the Marketplace.
If you are receiving advance payments of the premium tax credit, it is particularly important that you report changes in circumstances, including moving, to the Marketplace. There’s a simple reason. Reporting your move lets the Marketplace update the information used to determine your eligibility for a Marketplace plan, which may affect the appropriate amount of advance payments of the premium tax credit that the government sends to your health insurer on your behalf.
Reporting the changes will help you avoid having too much or not enough premium assistance paid to reduce your monthly health insurance premiums. Getting too much premium assistance means you may owe additional money or get a smaller refund when you file your taxes. On the other hand, getting too little could mean missing out on monthly premium assistance that you deserve.
Changes in circumstances that you should report to the Marketplace include, but are not limited to:
- an increase or decrease in your income
- marriage or divorce
- the birth or adoption of a child
- starting a job with health insurance
- gaining or losing your eligibility for other health care coverage
Many of these changes in circumstances – including moving out of the area served by your current Marketplace plan – qualify you for a special enrollment period to change or get insurance through the Marketplace. In most cases, if you qualify for the special enrollment period, you will have sixty days to enroll following the change in circumstances. You can find information about special enrollment periods at HealthCare.gov.
More Information
Find out more about the health care law, the premium tax credit and the individual shared responsibility provision at IRS.gov/aca.
Find out more about the Health Insurance Marketplace at HealthCare.gov, or by calling (800) 318-2596.
IR-2014-89: Tax Payments Top the One Million Mark with New IRS Direct Pay; Free Online System Makes it Easy for People to Pay Their Federal Taxes
Washington — With more than one million tax payments already processed this year through IRS Direct Pay, the Internal Revenue Service today encouraged anyone facing upcoming tax payment deadlines to consider choosing this free online system to quickly and easily pay what they owe.
“Direct Pay is the latest addition to our growing array of online tools designed to serve taxpayers better,” said IRS Commissioner John Koskinen. “Direct Pay simplifies the payment process, enabling people to quickly and easily make a secure payment from the convenience of a home computer.”
More than one million tax payments totaling over $1.7 billion have been received from individual taxpayers since Direct Pay debuted earlier this year. Available through the Pay Your Tax Bill icon on IRS.gov, Direct Pay allows individuals to e-pay their tax bills or make quarterly estimated tax payments directly from checking or savings accounts without any fees or pre-registration.
With tax correspondence season now in full swing, many taxpayers recently received notices for unpaid taxes from the IRS. Direct Pay offers these taxpayers an easy way to quickly pay these tax bills without having to write a check, buy a stamp or find a mailbox.
Because Direct Pay allows taxpayers to schedule payments up to 30 days in advance, now is also a good time for those who are making estimated tax payments for 2014 to set up their third quarter payment due Sept. 15. In addition, anyone who received an extension until Oct. 15 to file their 2013 federal return and now finds they owe additional tax can also use Direct Pay to e-pay the additional amount due.
Direct Pay is available 24 hours a day, seven days a week. Any taxpayer who uses the system receives instant confirmation that their payment was submitted. More information about Direct Pay can be found on IRS.gov.
Direct Pay cannot be used to pay business taxes. Taxpayers who wish to e-pay their federal business taxes should enroll in the Electronic Federal Tax Payment System (EFTPS), or click on the Pay Your Tax Bill icon to check out other payment options.