NASHVILLE, Tenn. – Tennessee families that received the Advanced Premium Tax Credit (APTC) in 2014 to help make their health insurance premium more affordable should file their 2014 federal income tax returns as soon as possible to avoid losing the subsidy in 2016.

The IRS is reminding taxpayers that health insurance marketplaces may determine which individuals are eligible to receive the APTC in 2016 during the fall of 2015. If individuals received advance payments of the premium tax credit in 2014, but did not file a 2014 tax return, they will not be considered eligible for the same credits in 2016.

Some families will receive a warning letter from the IRS, in which they will have 30 days to respond and file a return. If you receive an IRS letter 5591, 5591A, or 5596, Legal Aid Society of Middle Tennessee and the Cumberlands attorneys urge you to file a return immediately to avoid the loss of your health insurance subsidies come January.

“If individuals haven’t yet filed a 2014 federal income tax return, for whatever reason, they should do that as soon as possible – even if they were approved to file by the extended deadline on October 15. ” said Mary Gillum, Attorney and Director of Legal Aid Society’s Low Income Taxpayer Clinic. “Not doing so could result in a gap in credit or could lead to them not receiving the APTC at all.”

For many, the loss of the credit would make monthly health insurance premiums unaffordable. Without the help, some could be forced to drop their current health plans in favor of being uninsured or insured under a cheaper plan. Individuals who don’t file the tax return could also potentially be asked to pay back some or all of the 2014 advance payments they received.

“This is the first time people have had to reconcile the APTC on their tax returns, so many may not be familiar with this process,” Gillum added. “We just want to make sure all families are aware how important these returns are for on-going healthcare coverage.”

To determine whether or not you received the Advanced Premium Tax Credit, call the Marketplace at 1-800-318-2596. More information can also be found at www.irs.gov.

Legal Aid Society’s Low Income Taxpayer Clinic may also be able to help. Call 1-866-481-3669 for more information.