The IRS has been warning taxpayers about the risk of filing individual returns on or around the October 15 extended filing deadline. Unlike previous years, the Marketplaces will determine eligibility for advance premium tax credit payments and cost-sharing reductions for the 2016 coverage year this fall when applying for coverage. Chances of avoiding a gap in receiving this help will substantially increase if you file your 2014 tax return with Form 8962 electronically as soon as possible. Remember, open enrollment commences November 1, 2015 for 2016 calendar year health insurance plans though the Health Insurance Market Place. It takes time for return information to be processed and those seeking the APTC may be denied the credit while enrolling if the 2014 return information is unavailable to the Market Place. Taxpayers who plan to file their 2014 return on or about October 15 and seek a 2016 Advanced Premium Tax Credit (APTC), may want to E-file their 2014 return as soon as possible AND wait until closer to the December 15 enrollment deadline to enroll. This increases the possibility of their 2016 APTC taking effect January 1, 2016.
A few dates to remember: Nov. 1, 2015: Open Enrollment starts - first day you can enroll in a 2016 insurance plan through the Health Insurance Marketplace. Coverage can start as soon as Jan. 1, 2016. FYI2016 plans and prices will be available for preview the third week of Oct. 2015.
Dec. 15, 2015: Last day to enroll in or change plans for new coverage to start Jan. 1, 2016.
Jan. 1, 2016: Coverage starts for those who enroll or change plans by Dec. 15, 2016.
Jan. 15, 2016: Last day to enroll in or change plans for new coverage to start Feb. 1, 2016.
Jan. 31, 2016: Open Enrollment ends. Enrollments or changes between Jan. 16 and Jan. 31 take effect Mar. 1, 2016.
If you don't enroll in a 2016 health insurance plan by January 31, 2016, you can't enroll in a health insurance plan for 2016 unless you qualify for a Special Enrollment Period.