Saturday, February 21, 2015
This just in -
Oi vey! Michael Cohn reports “800,000 Taxpayers Received Wrong Tax Info from Health Insurance Marketplace” at ACCOUNTING TODAY!
The government tells us –
“About 20 percent of the tax filers who had Federally-facilitated Marketplace coverage in 2014 and used tax credits to lower their premium cost —about 800,000 (< 1% of total tax filers) —will soon receive an updated Form 1095-A because the original version they were issued listed an incorrect benchmark plan premium amount.”
“We are advising them to wait until the first week of March when they receive their new form or go online for correct information before filing. For those who have filed their taxes—approximately 50,000 (< 0.05% of total tax filers) —the Treasury Department will provide additional information soon.”
It seems this FU “only affects people who signed up through one of the 37 states using HealthCare.gov” and “taxpayers whose forms were affected will receive a phone call about the problem from the Marketplace by early March, in addition to letters and emails with additional information about the status of their forms.”
To find out if you received a FU-ed Form 1095-A you can check your account at www.HealthCare.gov.
So far I have only had one client with a Form 1095-A - and he was told his Form 1095-A was FU-ed, so we have to wait to file his return. I had been hoping to complete his 1040 this week-end. When I first reviewed his 1095-A something seemed amiss - because even though his actually income was more than that estimated when applying it looked like he was due an additional credit.
FYI - I have only had one client so far who did not have "full-year coverage" for all members of his household (currently "red-filed" - need more info).
And BTW - a “Where the Fakawi” for my clients is coming soon.