New Tax Implications of Obamacare! What You Need To Know.
I wanted to highlight several key developments this week as clients and new friends are finding that they haven't fully understood the implications of the financial subsidies they received from the Marketplace and Obamacare. Over the last few days we've heard from clients that have received 1095-A Forms which show how much they received in subsidies from the US Government and they are now wonder what they need to do with their forms and what they mean.
You Must File A Tax Return
We have stated many times in recent posts that if you did receive a subsidy in 2014 you must now file an income tax return, even if you don't make enough income to require you to file. It is mandatory that you file a return and you acknowledged that you would file a return when you made an application for subsidy with the Marketplace Exchange. Remember, you can't use the 1040 EZ form to file either, you must use the 1040 long form.
Don't Be Shocked If You Owe
If you underestimated your income and you made more than you anticipated you may owe the government more money and you may see a reduced tax refund or you might even owe the IRS money when you file.
John Sexton's article at Breitbart.com highlights that H&R Block is reporting that more than 50% of all subsidy recipients received too much subsidy and therefore must receive a smaller refund or even be forced to pay more tax! In other words, more than half guessed wrong about their income (they guessed low to get a greater subsidy)! He also reports that H&R Block mentioned that the average penalty paid for people not obtaining insurance was $172 per person. Check out the article here - Half of Obamacare Enrollees Owe The IRS.
Want To Avoid The Penalty In 2015? You Can Still Buy Insurance Through Texas Health Design!
If you failed to obtain health insurance for 2014 and you face a penalty you may have heard that the original deadline for signing up for coverage has passed. That is true, but the government created a new Special Enrollment Period for people that say that they didn't know they would have a penalty in 2014 and now want to sign up for coverage to avoid a penalty in 2015! Contact Us today or call us at 713-422-2935 and we'll walk you through the process of obtaining coverage for 2015!
Texas Health Design