This article discusses both taxpayer identity theft and the health insurance premium tax credit.

IRS tips on identity theft

The IRS does not initiate contact with taxpayers by email for personal or financial information.   They also do not email taxpayers stating they are being audited or getting a refund.

If a taxpayer receives any email claiming to be from the IRS it should be forwarded to phishing@irs.gov.

If you receive a letter from the IRS stating that more than one return has been filed under your social security number or that you have wages from an employer that you do not know, then you may be a victim of identity theft.

The IRS also warns against telephone scammers that call with fake names and badge numbers.  Keep in mind the IRS never calls and requests credit card numbers or debit card numbers to pay a debt over the telephone.

If you receive a telephone call from the IRS concerning a tax deficiency that you are unaware of (it is very rare to receive a telephone call before you have received a letter concerning a tax deficiency) then you should call 1.800.829.1040 and discuss your situation with an IRS representative who can verify or discredit the existence of your issue.

If you believe that you are not currently affected by identity theft but may be at risk due to certain circumstances, then you should contact the IRS and also follow the Federal Trade Commission’s (FTC) guidance on identity theft which can be found at www.ftc.gov/idtheft.

Premium Tax Credit

You may be eligible for the premium tax credit if you meet all of the following:

• buy health insurance through the Marketplace;
• are ineligible for coverage through an employer or government plan;
• are within certain income limits;
• file a joint return, if married; and
• cannot be claimed as a dependent by another person.

There are two ways of receiving the credit.  You can either receive the credit now by having your estimated credit paid directly to your insurance company to lower your monthly premiums or you can wait and get the credit when you file your 2014 income tax return in 2015.

The important aspect to keep in mind about the tax credit is that it is similar to income taxes paid in the sense that it is not until you complete your income tax return that you know the actual amount of your credit.  If you have received less than you are entitled to, then your federal refund would be increased or your payment due would be decreased.  If you have received more than you are entitled to then your federal refund would be decreased or your payment due would be increased.  Because the credit is calculated based on income and other factors such as family size, it is important to report any change in your circumstances during the year to minimize the risk of any under or over payment.