QUESTION

I got an extension to file my 2016 taxes and reconcile my premium tax credit, but because of the hurricane/wildfire, I won’t be able to make my October 16 deadline to file. What will happen?

Individuals with no coverage | Eligibility for Premium Tax Credits and Cost-Sharing Reductions
ANSWER

Currently the IRS is postponing the deadlines for taxpayers in certain counties affected by Hurricanes Harvey and Irma, and the California wildfires. Under the tax relief, taxpayers that have a valid extension to file their 2016 tax return in October have until January 31, 2018 to file.

If you received premium tax credits in 2016 you must file your tax return and reconcile your premium tax credits using IRS Form 8962 by the January 31, 2017 deadline so you can remain eligible for premium tax credits in the future. During open enrollment, contact the marketplace and update your household and income information in order to receive a redetermination of financial assistance and attest that you have or will file your tax return. Note that in general, you must file your tax return and reconcile any premium tax credits received using IRS Form 8962 for every tax year you received premium tax credits to remain eligible for premium tax credits in the future.

For 2018 coverage, the marketplace is providing an “exceptional circumstance” special enrollment period (SEP) for individuals residing in or moving from federally-declared incident areas impacted by the hurricanes from December 16, 2017 to December 31, 2017. To use this SEP, individuals must contact the Marketplace Call Center at 1-800-318-2596 or TTY at 1-855-889-4325. (26 C.F.R. § 1.36B-2; CMS, Guidance on Annual Eligibility Redetermination and Re-enrollment for Exchange Coverage for 2018, July 13, 2017; IRS, Tax Relief in Disaster Situations; CMS, 2017 Hurricane Disasters - SEPs, Termination of Coverage and Grace Period Flexibilities, Sept. 28, 2017).

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