Adults who receive coverage via an exchange must file a tax return with IRS. The exchange will issue Form 1095-A to report the names of all family members with coverage plus the amount of monthly premiums and advance credit payments. A married couple must generally file jointly to get the credit, but there’s a special rule for victims of domestic abuse: They can claim the credit on a separate return if the victim is living apart from his or her spouse at the time of the return filing. Folks will use Form 8962 to figure the credit and list any advance payments. Then filers will transfer the net amount to a separate line on the back of the 1040.
If you’ve opted for the credit to be paid in advance, heed this tip from IRS: Tell the exchange of changes in family size, income and other circumstances, such as starting a job with an employer that provides health coverage to employees,
that affect the amount of the credit. For example, if your income ends up higher than you estimated, the credit may be much smaller than the advance payments. That could result in a lower tax refund than anticipated, or perhaps even a tax bill. If you notify the exchange of changes in income, etc., it can adjust the subsidy for the subsequent months and your tax return reconciliation won’t be so skewed.