Health insurance premium tax credit letter from IRS

Below are few frequently asked questions about the premium tax credit reconciliation letter from IRS.


 Why did I receive this letter? 

The reason you receive this letter could be due to multiple reasons:

a) If you purchased health insurance this year from the marketplace, the marketplace may have made advance payments of the premium tax credit on your behalf to your or your family's insurance company last year. Marketplace also notifies IRS of these advance payments. It may trigger 12 C letter if you have not entered the specific advance payments in your tax return as notified by the marketplace.

b) You didn't  reconcile the advance payments of the premium tax credit. You will need to use Form 8962, Premium Tax Credit, to reconcile advance payments with the amount of the credit. If you file your tax returns without Premium tax credit form  8962, this may delay refund and prevent you from receiving advance credit payments in subsequent years.


How do I respond to this letter?

In most cases, IRS will outline various options and next steps in the letter. You can contact a Certified public accountant if you require further assistance. Below are few general guidelines. Please note that each situation may be different, so consult a qualified professional if you are unclear on next steps.

a) If you received this letter in error, notify to IRS via certified mail to the IRS address mentioned in the mail.

b) If you disagree, notify to IRS with supporting documents eg: Form 1095 and your coverage information from the marketplace.

c) If you agree to the IRS findings, then you need to send the tax return along with the information below:

  i) Form 1095 A-marketplace statement.

  ii) Completed form 8962

  iii) As per IRS website, please follow the following: On the second page of your tax return, which includes the “Tax and Credits” and “Payments” sections, showing the required corrections and your signature. Please complete the  line for “excess advance premium tax credit repayment” or the text that reads “net premium tax credit.”  Transfer the information from your 1040EZ to form 1040 A and include this as a response to your letter. This only applies if you filed form 1040 EZ


Should I complete form 1040 X-amended tax return?

No. Do not file amended tax return. 


I cannot find my 1095-A. What should I do now?

You will need to contact healthcare marketplace. Below is the link Healthcare Marketplace contact information


I have various questions about this letter, which number should I call?

Always call the number provided in your letter. You can also contact IRS local office locator directly




Posted In: Tax

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