Open Enrollment for the 2016 plan year is quickly approaching, and some health insurance shoppers may find that the assistance they received in 2014 and 2015 may not be there next year.
If you are late filing taxes for 2014, which are due by April 15th, 2015, you may not be able to get the advanced premium tax credits in 2016 until you file. The IRS sent notices by July 31st to applicable individuals who fall in this category, but many consumers may not have to file taxes and may not be used to completing this step.
Another problem is the delay in communications between the IRS and Health and Human Services, the government agency responsible for operating healthcare.gov. Even if you do file by August 31st (the IRS recommended deadline to avoid this problem) it may be after January 1st, that HHS receives the correct info from the IRS, delaying your eligibility for tax credits and cost sharing reductions.
The fastest way to get your info to the IRS is to eFile. The message from the IRS to tardy filers states, in bold type, that filing an electronic return within 30 days “will greatly reduce the risk of an interruption” in advanced premium tax credits.
With national average for advanced premium tax credits being $272 per month, tardy tax filers could face quite a shocking increase in 2016. The administration is particularly worried about satisfied customers, particularly the ones on Social Security Disability, who are not required to file taxes.
Many individuals and families that are exempt from filing federal income taxes, but are receiving advanced premium tax credits through the affordable care act, need to understand that filing taxes is mandatory if assistance is to continue and that they agreed to file taxes on their marketplace application. They also need to be reassured that filing does not mean that they will owe additional money to the IRS, as that misconception may cause the policyholder to be apprehensive about filing.
Andrew Hetzler is the Chief Operating Officer of American Exchange. For a free consultation with a licensed agent call 1-888-995-1674 or email firstname.lastname@example.org. To contact Andrew directly, you can email him at email@example.com.