Is Health Care Reform Impacting Your 2014 Tax Return?

Did you get your health coverage through California’s exchange,
Covered California?

Thanks to HCW Benefits for use of their image

Did you know that there may be tax ramifications of your enrollment?

In last week’s Los Angeles Times article entitled
Obamacare: California sends 120,000 corrected tax forms, thousands more coming“,
journalist Chad Terhune wrote:

“California’s Obamacare exchange has sent out 120,000 corrected tax forms, but it said tens of thousands of other consumers are still waiting for their information.

“Peter Lee, executive director of the Covered California exchange, said those remaining households should get tax forms related to their health-law subsidies by the end of March.”

Have you received yours?

Whether or not you have, here is some important information:

“Friday, the U.S. Treasury Department announced that taxpayers who got incorrect information from state exchanges such as Covered California won’t be required to submit corrected returns if they have already filed their taxes….

“At issue is Form 1095-A, which health-law exchanges must send to individuals and families showing how much money they received in 2014 from the federal government to subsidize their health insurance premiums….

“‘The Internal Revenue Service will not pursue collection for any additional taxes. This is a very big deal,” Lee said.

“Conversely, Lee said, taxpayers are free to file an amended return if their tax form indicates they are due money back.

“Lee cautioned that the exchange is still sorting through numerous files and some forms might not be available until after the tax filing deadline of April 15.”

Here is a quote we have heard many times this season:

“This is the first tax season ever that healthcare and taxes are interwoven,” Lee said. “We are learning from this.”

If this just seems like too much and is freaking you out,
please reach out to your tax adviser, or call us to see if
we can help you: 877.789.5831

We always look forward to being of assistance and wishing you good health!

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