Get a health insurance credit? Didn’t report it? Uh-oh!

Get a health insurance credit? Didn’t report it? Uh-oh!

prem tax creditObamacare……   You’ve heard of it, right?  Well….everyone has to have health insurance or pay a penalty. So “they” came up with a Healthcare Marketplace you could shop on to buy health insurance.  Depending on your individual circumstances you may have been entitled to a discount on that insurance premium, money may have been paid directly to the insurance company on your behalf.   If you purchased insurance through this healthcare Marketplace ou would have received a 1095-A Form to use when filing your 2014 tax return.  It would have shown the premium and how much “Advance Premium Tax Credit” you received.

The info on that form was to be reported, by you, on your 2014 tax return and then 3 things may have happened:

  1. You may have gotten MORE MONEY in your refund.  Yay!!!!! Woohoo!!!!  Because your actual income ended up being less than what you had projected.
  2. You may have owed some of it back to the government. Ugh! Because you earned more for instance that what you projected.
  3. The amount was o.k., no more, no less.

You were to report changes in your address, income, family size on a monthly basis on the Marketplace website when they occurred. Maybe you did, maybe you didn’t. From now on you should. Although getting an EXTRA amount is nice at tax time, you certainly don’t want to end up owing, some, or maybe ALL of it back.

Well, the IRS has sent notices to the people that received this credit but didn’t include Form 8962, where it gets reported, on their tax return.  It is an ABSOLUTE REQUIREMENT that you file this form in order to reconcile the amount you got with what you should’ve gotten.

If this happened to you:

If you don’t do it?  Well, for one thing, you could lose any credit you were going to get in future years.  Plus… the IRS will keep hounding you for it so……. let’s amend. Shall we?

Linda Reinhardt

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