The Kaiser Family Foundation recently released a report indicating that nearly half of all consumers who received tax credits in 2014 underestimated their income. As a result, those individuals will have to pay back part or all of the additional financial assistance. This unfortunate occurrence is a reminder that marketplace consumers should update their income on a monthly basis in order get an accurate tax credit and avoid having to pay back portions of their tax credits.
Many individuals and families don’t have a consistent month-to-month income. Because marketplace tax credits are #question-how-do-the-premium-tax-credits-work">based on income, consumers should be sure to update their financial information on a monthly basis. To do that, follow these instructions:
- Online. Log in to your account. Select your existing application, choose "Report a life change" from the menu on the left, and then click on the "Report a life change" button. Find out how to upload documents
- By phone. Contact the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889-4325)
Important: Do not report these changes by mail.
There are other factors that affect your household income for tax purposes, such as having a child or getting married. Below is a list of life changes that should be reported to the marketplace. Report changes if you:
- Get married or divorced
- Have a child, adopt a child, or place a child for adoption
- Have a change in income
- Get health coverage through a job or a program like Medicare or Medicaid
- Change your place of residence
- Have a change in disability status
- Gain or lose a dependent
- Become pregnant
- Experience other changes that may affect your income and household size
- Have a change in tax filing status
- Have a change of citizenship or immigration status
- Become incarcerated or released from incarceration
- Have a change in status as an American Indian/Alaska Native or tribal status
- Need to correct your name, date of birth, or Social Security number
If you have any questions regarding marketplace tax credits, please contact Health Action NM by calling (505) 322-2152 or email colin@healthactionnm.org.
