COLUMBUS, Miss. (WCBI) – Millions of Americans now have access to healthcare because of the Patient and Protection Affordable Care Act also known as Obamacare. For those who don’t have insurance or bought their insurance in the health exchange, filing taxes this year will include more IRS forms.
As of January 2014, individuals are required by the Affordable Care Act to have health insurance. Those who didn’t have health insurance for some time period in 2014, are required to complete form #8965 and pay a penalty.
“It’s $95 or 1% of your adjusted gross income, whichever is higher of the two. It’s been a lot of misunderstanding about that. That could be per person in each household,” says Elaine Evans, a Certified Public Accountant in Columbus.
The nearly 20 million people who purchased insurance in the healthcare exchange must complete the two-page form #8962. This form determines tax liability based on healthcare subsidies received from the government.
“There’s one thing called a penalty for not having it. That’s a different calculation from the people who do have it and have paid in either too much or too little of their premiums depending on their income,” says Evans.
Tax experts say the new changes could be overwhelming for some. Still, it’s in the tax payers best interest to file a return, even if they have to pay a penalty.
“Even if you can’t pay and you owe, go ahead and file because there’s a larger penalty for non filing than non payment. Go ahead and file,and the IRS, believe it or not, accepts a payment plan,” says Evans.
The IRS estimates that about half of the six million people who received subsidy payments for Obamacare were overpaid.
For more information about the Affordable Care Act and filing your taxes, just go to www.irs.gov.