They’re not words taxpayers like to hear, but some 800,000 people who enrolled in health insurance through the federal Marketplace, could find their refunds delayed.
The Obama administration announced on Friday that it had sent incorrect information on Form 1095-A to about 800,000 people. Those people were asked not to file their taxes just yet. Instead, they need to wait for the corrected forms, which have been promised by early March or about one month ahead of the April 15 filing deadline.
Affected taxpayers should find a message on their HealthCare.gov accounts.
The correct information will not only delay their ability to file their taxes, it could also decrease any refund they may have anticipated. The Form 1095-A is used to determine whether tax credits, which subsidize insurance costs, were accurate. If a taxpayer received too much in tax credits, for example, he or she must reimburse the government. Those who received too little will be reimbursed by the government.
Federal officials suggested that 50,000 people who received bad information may have already filed their taxes. The IRS said it will not be collect additional taxes from those who filed using incorrect information and may owe the government. Those who paid too much in taxes based on the bad information may have to file an amended tax return.
Taxpayers who may have gotten incorrect information can attempt to figure things out on their own, but calculations can be complex.
A tax preparer can help taxpayers determine how best to proceed. Tax preparers can also help those who need to file amended returns.
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