Ed note: As tax season comes to an end, we wanted to address a few last-minute issues for taxpayers who may find that their return is a bit more complicated this year, thanks to the Affordable Care Act.
If you’re one of the millions of people who bought health insurance through the Marketplace in 2014 and took advantage of a premium tax credit to help pay for it, you should have received a statement in the mail called a Form 1095-A.
This form helps reconcile the premium tax credit you received with the credit you were actually eligible for based on your income and family size. It’s required to complete your return.
Unfortunately, the federal Marketplace sent about 800,000 forms with incorrect information.
By now, the government has fixed the errors and mailed out new forms. But there’s still a considerable amount of confusion about the forms, and what to do if you unknowingly filed your tax return using one that had the wrong information.
I’ve got my form. What do I do with it?
First, log in to your Healthcare.gov account and check to see if you have received a notice about a corrected 1095-A. (If you were one of the affected people, you would have also received a phone call from the Marketplace.) By now, the corrected forms have all been mailed out as well as posted to your online account. If you haven’t yet received your 1095-A in the mail, either call the Marketplace right away so it can send you a new one, or simply download your form from your Healthcare.gov account. Once you have your new, updated form, you can use it to file your taxes.
Some more good news: H&R Block’s online tax preparation program has a new feature that will import the data from your 1095-A directly into the necessary forms on your tax return, making it even easier to file.
I think I used an incorrect form to file. What do I do?
If you filed a tax return before the Centers for Medicare & Medicaid Services (CMS) caught the incorrect forms, there’s good news. The IRS says you won’t have to file an amended tax return. The government won’t try to collect any additional taxes based on updated information in the corrected forms.
Earlier, we reported that if you’d bought your health coverage on a state Marketplace rather than a Federal one, you’d be required to file an amended return. That’s no longer the case. Neither state nor Federal Marketplace consumers who were affected are required to file an amended return.
You may choose to file an amended return if the corrected information means you were due a larger refund. Ask your tax pro if you would benefit from amending. You have up to three years from April 15, 2015, to file it, but there’s no time like the present!
What else do I need to know?
Keep in mind that you could receive more than one Form 1095-A. If different members of your household had different health plans through the Marketplace, you’ll each get your own form. If you updated your coverage information during 2014 or switched plans during the year, you may get more than one form. Even if you only had Marketplace coverage for part of the year, you’ll still get a 1095-A.
It’s also important to note that even if you didn’t receive one of the 800,000 incorrect forms, you could still get a “corrected” 1095-A for another reason, such as if the Marketplace needed to fix other data related to your health care, like the months you had coverage or the amount of your monthly premium.
Have more questions that weren’t answered here? See more Frequently Asked Questions, visit www.HealthCare.gov/taxes or call the Marketplace any time, day or night, at 1-800-318-2596.
SOURCE: Block Talk – The H&R Block Official Corporate Blog – Read entire story here.
