August 10, 2015
Taxpayers who have filed a valid extension for their tax return for 2014 have until October 15 2015 to file a timely tax return. However, if you receive your health insurance through the Affordable Care Act (Obamacare) there is a little problem. The IRS requires you to reconcile the Advance Premium Tax Credits you receive by filing a properly completed tax return. The Advance Premium Tax Credits are funds the government sends to your insurance carrier to reduce the the actual cost of insurance paid by you. These funds typically amount to hundreds of dollars per month.
Taxpayers who fail to file a tax return, even if you have a valid extension in place, may find that your future Advance Premium Tax Credits are in jeopardy because you have not filed a tax return. That means your affordable health insurance premiums could suddenly become not so affordable.
Even though the tax laws allow you to delay your tax filing until as late as October 15, 2015, the Affordable Care Act requires you to reconcile your Premium Tax Credit as soon as possible by simply filing a properly completed tax return. Recipients who fail to expeditiously file a tax return may lose access to Advance Premium Tax Credits until the tax return is filed. If you cannot personally pay the full cost of your insurance until your credits are reinstated you could lose your health insurance coverage.
The IRS is sending out letters to affected taxpayers and has information on this situation on its website here and here. The bottom line is, if you receive premium subsidies from the government for your health insurance you must file a tax return as soon as possible. Even if you have until October 15 to file, waiting that long could cost you your health insurance.
If you need assistance with filing your 2014 tax return please feel free to call Tax On Wheels, LLC at 803 732-4288 and let us get you caught up as soon as possible.