Consumers who have not yet filed their taxes for 2020 should do so immediately. In April 2021, the Internal Revenue Service (IRS) announced that, for tax year 2020, taxpayers with excess advance payments of the premium tax credit (APTC) for 2020 are not required to reconcile their APTC with the amount of premium tax credits (PTC) they may claim for 2020. Consumers applying for coverage for Plan Year 2022 are not required to attest to having filed their tax return and reconciled their APTC from previous plan years. However, this does not change the IRS requirement that consumers file their tax return every year and reconcile their taxes.
In July 2021, the Centers for Medicare & Medicaid Services (CMS) issued guidance regarding flexibilities in Failure to File and Reconcile (FTR) operations for Plan Years 2021 and 2022, as a result of the COVID-19 public health emergency. The guidance specifies that consumers will remain eligible for APTC for coverage in 2021 and 2022 even if IRS data indicates that they have failed to file or reconcile. Click the button below to learn more about the 2020 tax filing requirements for consumers.