- If you got a six-month extension of time to file, you do not need to wait until this fall to file your return and reconcile your advance payments. You should file as soon as you have all the necessary documentation.
- You must file to ensure you can continue having advance credit payments paid on your behalf in future years. If you do not file and reconcile your 2015 advance payments of the premium tax credit by the Marketplace’s fall re-enrollment period – even if you filed for an extension – you may not have your eligibility for advance payments of the PTC in 2017 determined for a period of time after you have filed your tax return.
- Advance payments of the premium tax credit are reviewed in the fall by the Health Insurance Marketplace for the next calendar year as part of their annual re-enrollment and income verification process.
- Use Form 8962, Premium Tax Credit, to reconcile any advance credit payments made on your behalf and to maintain your eligibility for future premium assistance.
If you filed for an extension of time to file your 2015 federal tax return and you also chose to have advance payments of the premium tax credit (PTC) made to your coverage provider, it’s important you file your 2015 federal tax return sooner rather than later:
You may discover a mistake was made on your tax return. You can file an amended return if you need to fix an error. You can also amend your tax return to claim a tax credit or deduction.
When to amend. You should amend your tax return if you need to correct filing status, the number of dependents or total income. You should also amend your return to claim tax deductions or tax credits that you did not claim when you filed your original return.
When NOT to amend. In some cases, you don’t need to amend your tax return. The IRS will make corrections, such as math errors, for you. If you didn’t include a required form or schedule, for example, the IRS will mail you a notice about the missing item.
Form 1040X. Form 1040X is used to amend a federal income tax return that you filed before. It must be filed by paper; it cannot be filed electronically.
More than one tax year. If you need to file an amended return for more than one year, use a separate 1040X for each tax year. Mail them in separate envelopes to the IRS.
Amending to claim an additional refund. If you are waiting for a refund from your original tax return, don’t file your amended return until after you receive the refund. You may cash the refund check from your original return. Amended returns take up to 16 weeks to process.
When to file. To claim a refund file Form 1040X no more than three years from the date you filed your original tax return. You can also file it no more than two years from the date you paid the tax, if that date is later than the three-year rule.
Track your return. You can track the status of your amended tax return three weeks after you file with “Where’s My Amended Return?”
Larry Baker, Enrolled Agent