As Tax Season Nears, Those Insured Through Obamacare Have Extra Figuring To Do
By Pat Loeb
PHILADELPHIA (CBS) - People who bought health insurance through the federal marketplace last year face extra steps on their 2014 tax returns, and maybe extra taxes too.
The Affordable Care Act uses tax credits to "make" insurance affordable. The credits are based on income and most people estimated their income when they applied.
The time has come to reconcile their estimate with their actual income, and accountant Mark Zinman says if their real income is higher than their estimate, they may be in for a disappointment:
"People could end up with no refund. So people who were expecting $2,000 and they get it every year are going to find out they got too much money for the health care credit and they have no $2,000 refund."
Zinman says, of course, if the income is lower than their estimate, their refund will be higher.
This year, Anyone making more than 138 percent of the poverty limit, who isn't insured, will have to pay a penalty.
"There's a penalty per month for every month you weren't covered unless you had a valid reason -- financial hardship, if you're unemployed -- stuff like that, but if there isn't there's a penalty," says Zinman
Also this year, the IRS is sending out a new form --1095A -- to help taxpayers figure everything out.
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