Georgia Navigator Practice Exam

What consequence occurs if a person does not file a federal income tax return in a year they received APTC?

1. The individual is fined by the IRS

2. The marketplace will terminate their eligibility for financial assistance

3. The APTC amount will increase

4. The individual becomes ineligible for Medicaid

The correct answer is: The marketplace will terminate their eligibility for financial assistance

If a person does not file a federal income tax return in a year they received Advance Premium Tax Credits (APTC), the consequence is that the marketplace will terminate their eligibility for financial assistance. This is because the APTC is based on the individual's estimated income and tax filing status. By not filing a tax return, the marketplace cannot verify the individual's actual income for the year, which is necessary to determine continued eligibility for assistance. Filing a tax return is crucial for reconciling the APTC received with the actual income earned, as it affects whether the individual qualified for the credits in the first place. Consequently, this lack of verification leads to the termination of eligibility for financial assistance going forward.