Some Americans don’t or didn’t realize that when the government issues a tax credit to an individual, family, business etc., a tax return must be submitted to the Internal Revenue Service (IRS) for the appropriate year you received this tax credit during the next tax year which usually falls on April 15 (at midnight) for its deadline. For a closer look regarding Obamacare advance tax credits for health insurance premiums please read the article “A Potentially Big Obamacare Problem: More Than 1.4 Million People Failed to Do This in 2014” by Sean Williams. For full details on the situation to date released earlier this month by the Department for Health and Human Services, which in turn came from the Internal Revenue Service, about 316,000 households that received tax credits in advance for health insurance failed to file tax returns in 2014. According to the above referenced article, prior to the implementation of Obamacare, quite a few households may have been able to go without filing federal taxes because they didn’t earn enough taxable income. However, under Obamacare, filing a tax return if you receive a subsidy is a requirement.
Further information reveals that an additional 147,000 households requested extensions on their 2014 federal tax filings but never followed through. Most importantly, some 976,000 households did file but failed to include Form 8962 with their 2014 returns. Form 8962 is what the IRS uses to compare what a person earns during the year versus what they were given in tax credits. If a person earns more than expected, they could be required to pay back some (or all) of the subsidy they received during the year. The opposite is also true, in that they could receive refunds if they earned less and were deserving of larger premium tax credits.
What has been stated here may well be the tip of the iceberg for you. In any event—read the entire article referenced above and contact your local federal official for further information as there is much more to be considered regarding cost of future insurance premiums under Obamacare and penalties in regards to the IRS that may have already been incurred due to lack of action. In St. Lucie, Martin and Northern Palm Beach County Contact Congressman Patrick Murphy at WASHINGTON, D.C. OFFICE, 211 Cannon HOB, Washington, DC 20515 P:(202) 225-3026 F: (202) 225-8398; Or locally at:
PALM BEACH COUNTY, 2000 PGA Blvd, Suite A3220 Palm Beach Gardens, Fl 33408 P:(561) 253-8433 F:(561) 253-8436;
MARTIN COUNTY, 171 SW Flagler Ave Stuart, Fl 34994 P :( 772) 781-3266 F :( 772) 781-3267;
ST. LUCIE COUNTY, 121 SW Port St. Lucie Blvd, Room 187, Port St. Lucie, Fl 34984 P:(772) 336-2877 F:(772) 336-2899;
ST. LUCIE COUNTY, 2300 Virginia Avenue, Room 200A, and Fort Pierce, FL 34982 P :( 772) 489-0736, F: (772) 464-8392.