taxes

Up To 1 Million Taxpayers Could See Delayed Refunds After Obamacare Snafu

Taxes

Despite threats from IRS that this might be a “miserable” filing season, things seemed to be going reasonably well. Until now.

Today, the Obama administration announced that it sent out about 800,000 bad tax statements. The specific tax statement is form 1095-A, which is issued to those who purchased health care coverage through the Marketplace. The form 1095-A includes information about health care premiums paid and is used to calculate, among other things, your premium health care credit.

Here’s where things went awry this filing season. Some forms 1095-A included the monthly premium amount of the second lowest cost Silver plan for 2015 instead of 2014. Yes, you and I know that while it’s 2015, we’re filing our 2014 tax forms – but somehow that got lost at Healthcare.gov. Those folks reported amounts for the wrong year which is why the form needs to be corrected. You’ll see the potentially incorrect amount on Part III, Column B of form 1095-A.

If your form is incorrect, you’ll get a call and an email from the Marketplace. There will also be a message in your Marketplace account on HealthCare.gov. When your corrected form is ready, you’ll similarly be notified.

Here’s the bad news (as if that’s not bad enough already): those corrected forms should be available by early March, not in the next day or so. March. And since the information could potentially affect tax credits and therefore, tax refunds, taxpayers who received the bad tax statements are being asked to wait to file 2014 federal income tax returns.

If you absolutely can’t wait, you can figure the amount of the plan that applied to your household in 2014 on your own by either calling the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889-4325) or going online. Of course, figuring it out on your own could be complicated – be willing to wait on the phone if you need assistance.

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Source: Forbes

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