IMPORTANT INFO FROM IRS ABOUT 2014 RETURNS

Failing to file 2014 tax returns will prevent advance payments in 2016

The IRS reminds taxpayers who received advance payments of the premium tax credit in 2014 that they should file their 2014 tax return as soon as possible this summer to ensure they can timely receive advance payments next year from their Marketplace.

If advance payments of the premium tax credit were paid on behalf of you or an individual in your family in 2014, and you do not file a 2014 tax return, you will not be eligible for advance payments of the premium tax credit or cost-sharing reductions to help pay for your Marketplace health insurance coverage in 2016. This means you will be responsible for the full cost of your monthly premiums and all covered services. In addition, we may contact you to pay back some or all of the 2014 advance payments of the premium tax credit.

Because Marketplaces will determine eligibility for advance tax credit payments and cost-sharing reductions for the 2016 coverage year this fall, it will substantially increase your chances of avoiding a gap in receiving this help if you file your 2014 tax return with Form 8962 electronically as soon as possible.

If you missed the April 15 deadline or received an extension to file until Oct. 15, you should file your return as soon as possible. You should not wait to file. File now to reconcile any advance credit payments you received in 2014 and to maintain your eligibility for future premium assistance.

Remember that filing electronically is the best and simplest way to file a complete and accurate tax return as it guides you through the process and does all the math.

People are asking…

The IRS hears many questions about the health care law. Here are commonly-asked questions that we are hearing from taxpayers and seeing on social media.

Q: I do not normally have to file a tax return. Why is the IRS telling me that I should file as soon as possible?

A. The IRS believes that you enrolled in health coverage through the Health Insurance Marketplace. If the government sent advance payments of the premium tax credit to your insurer, you are required to file a 2014 income tax return. If you do not file a 2014 income tax return, you will not be eligible for financial help next year. This means you will be responsible for the full cost of your monthly premiums. Do not wait to file. File now to stay eligible for future premium assistance.

Q. My income is below the threshold to be required to file a tax return, but advance payments of the premium tax credit were sent to my insurance company in 2014 to help pay my monthly premium; do I need to file a tax return?

A. Yes, you are required to file a tax return. If advance payments of the premium tax credit were paid for you or an individual in your tax family, you must file a tax return to reconcile the difference between the advance credit payments made on your behalf and the actual amount of the credit that you may claim. This requirement applies whether or not you would otherwise be required to file a return. File as soon as you can even if you missed the April 15 deadline. If you missed the April 15 deadline or you received an extension to file until Oct. 15, you should file your return as soon as possible. You should not wait to file. File now to reconcile any advance credit payments that were made for you or a member of your tax family in 2014 and to maintain your eligibility to get advance credit payments for your 2016 coverage.
This is from an IRS posting. What’s important here to note is that even if you are not required to file a tax return, you should file for 2014 (and it’s not too late) so that you can get health insurance help in 2016. Otherwise you will be forced to pay in full for health insurance and wait until you file your 2016 tax return to be reimbursed for any government assistance. Once you have filed your 2014 return, I’d suggest you file 2015 (again, even if you aren’t required to file because your income is too low) because this law isn’t going away any time soon.

If you don’t file a 2014 tax return, you will not be eligible for advance payments of the premium tax credit to help pay for your Marketplace health insurance coverage in 2016. This means you will be responsible for the full cost of your monthly premiums and all covered services.

You should file your 2014 tax return with Form 8962 as soon as possible even if you don’t usually have to file. You should have received Form 1095-A from your Marketplace. This form provides the information you will need to complete Form 8962. If you need a copy of your Form 1095-A, go to HealthCare.gov or your state Marketplace website and log into your Marketplace account or call your Marketplace call center.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s