Is financial assistance reviewed at the end of the year to account for changes in clients’ circumstances?

PTCs are reconciled at the end of the year, meaning that the IRS will review and determine whether the correct amount of credit was applied. When a person files federal taxes, they will need to fill out IRS Form 8962 to document premium tax credits received and actual amount of premium tax credits owed based on income and household size at the end of the year. The amount of premium tax credits received can be found in a letter from the Marketplace that is typically sent to clients at the end of January, following the end of the plan year.

The information a person includes on Form 8962 will be used to indicate whether that person is owed a refund or owes the IRS money because of an advance premium tax credit overpayment.

CSRs are not reconciled at the end of the year.