Home » FAQ » Why do I have to file last year's taxes to continue to receive financial assistance next year?

Why do I have to file last year's taxes to continue to receive financial assistance next year?

If you received financial assistance for your health plan last year through Maryland Health Connection (in the form of a tax credit or cost-sharing reduction), you must file a federal tax return and include Form 8962 to remain eligible for financial assistance next year (even if you are not otherwise required to file taxes). This is a requirement under the Affordable Care Act. Read more here about this requirement.

You must file a federal income tax return along with a Form 8962 for any year that you have received financial assistance through Maryland Health Connection in order to remain eligible for tax credits and cost-sharing reductions through Maryland Health Connection, even if you have not been required to file taxes in the past due to your income or other circumstances.

If you fail to complete the tax-filing process, you will be responsible for the full cost of your health insurance premiums and all covered services without any financial assistance in the form of tax credits and cost-sharing reductions. In addition, the Internal Revenue Service may contact you to pay back some or all of the tax credits received last year.