Consequenses of Owing Taxes Due to Affordable Care Act

Okay, so everyone has heard the “oh what can they do if I owe? Apparently nothing.” Well that’s not exactly true.

If you happen to end up owing tax due to being uninsured, the IRS has been pretty limited by the government in collecting the tax due. It cannot lien or levy against individual assets. It won’t charge you interest. It can, however, take your refund.

On the other hand… You knew there would be one of those didn’t you?!! If the market place has overpaid the taxpayer in advance health premium credits, then the federal government has allowed the IRS to use its full collection powers to retrieve the monies. That means levies and liens people!

That’s why its so important to let the exchange know as soon as possible whenever there is a change in any circumstance (family size or income are some examples) that could affect your credit amount. It’s better to make the adjustment as the year progresses than at tax time. Because if your income ends up higher than you originally projected, your credit will be smaller at tax time, and you could owe.

On the other hand, there is always the chance that circumstances could be in your favor, and your credit will be larger! One could hope, right?

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