The IRS previosuly annoucned that approximately 800,000 taxpayers who received coverage via Healthcare.gov and qualified for premium tax credits had received the wrong information on a Form 1095-A, “Health Insurance Marketplace Statement.” This information was sent to taxpayers via mail and many of the taxpayers used the information on Form 1095-A to file their 2014 taxes.
Obamacare Tax Form Error
A new notice says that About 50,000 taxpayers who had filed their returns before an error in an Obamacare tax form was discovered will be able to keep the money. In a statement Tuesday, an unidentified Treasury Department spokesperson said that those who have already filed their tax returns will not be subject to additional taxes once the correct information is available and they do not need to file an amended tax return.
Barack Obama’s law provides subsidized private health insurance to people who don’t have access to coverage on the job. Because those subsidies are delivered as a tax credit, people who benefit from them have to account to the IRS that they got the correct amount they were legally entitled to.
That’s done on the yearly tax return, with the help of a new form called a 1095-A. It’s like a health care W-2 for people who got subsidized coverage under Obama’s law
The incorrect information that appeared on the 1095-A specified the premium amount for the “second lowest cost Silver plan” in the taxpayer’s area. The amount is supposed to represent the benchmark plan used to determine the amount of the premium tax credit the taxpayer is eligible to receive.
Amending return to Fix Form 1095-A Error
A tax filer is likely to benefit from amending if the 2015 monthly premium for his or her second lowest cost Silver plan (or ‘benchmark’ plan) is less than the 2014 premium. For example, if a filer’s original form lists a benchmark premium of $100 and her updated form lists a premium of $200, it may be in her interest to refile. Individuals may want to consult with their tax preparers to determine if they would benefit from filing amended returns. As CMS announced last week, affected individuals who have not yet filed their taxes should wait to file until they receive their corrected forms.