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IRS Questions and Answers Regarding Individual Insurance Forms

by | ARTICLES, BLOG, GOVERNMENT, OBAMA, OBAMACARE, POLITICS, TAXES

Today, the IRS issued a series of questions and answers about health care forms that individuals will receive in the next few months. These forms are the 1095-A, 1095-B, and 1095-C. The information is “intended to educate individual taxpayers and describe the forms, who will provides them, and the purposes they serve. The Q&As also provide information as to when taxpayers can expect the forms and what taxpayers need to do with the forms once they are received.”

The bulletin answers the following questions:

1. Will I receive any new health care tax forms in 2016 to help me complete my tax return?

2. When will I receive these health care tax forms?

3. Must I wait to file until I receive these forms?

4. What are the health care tax forms that I might receive and how do I use them?

5. How will I receive these forms?

6. My employer or health coverage provider has suggested that I opt to receive these forms electronically rather than on paper. Are they allowed to ask me that?

7. Will I get at least one form?

8. Will I get more than one form?

9. Will I get a Form 1095-C from each of my employers?

10. How are the forms similar?

11. How are the forms different?

12. What do I need to do with these forms?

13. What should I do if:
I have a question about the form I received,
I think I should have gotten a form but did not get it,
I need a replacement form, or
I believe the form I received has an error?

14. Can I file my tax return if I have not received any or all of these forms?

15. Am I required to file a tax return if I receive one of these forms?

16. Should I attach Form 1095-A, 1095-B or 1095-C to my tax return?

If you have these or similar questions, you should read the IRS bulletin. You can see the full questions and answers here.

Obamacare Users Will Need Extra Form From the Government Before They Can File Their Taxes

by | ARTICLES, BLOG, GOVERNMENT, OBAMA, OBAMACARE, TAXES

If you are an Obamacare enrollee, you will not be able to file your taxes next year until you receive a new Obamacare form, the 1095A. That means if the government is not on time getting the forms out, taxpayers who need the form could face a delay receiving anticipated refunds.

The proposed deadline to send out the forms is January 31, 2015, which also coincides with the date that employers must issue W-2 to their employees.

Form 1095A is necessary: filers need the forms to calculate whether they received the correct subsidy from the government, or if they owe money to cover a difference”. The IRS has a working draft on the form, but doesn’t yet include the instructions on how to calculate the proper subsidy amount — and that’s the key.

Because of the extensive problems during the Obamacare rollout and initial signup period, some folks may find that the did not receive the proper subsidy. Additionally, changes to income during the year might also affect the outcome. The Form 1095A is designed to match up the income for 2014 with the subsidy amount received. Some might find they will didn’t get enough of a subsidy and will receive money back, while others could have the opposite problem: their subsidy was too high, and they now owe money back.

So Obamacare users — be on the lookout for the 1095A early next year. Even if you have all your documentation to file your taxes, you still may not file until you receive that form. Hopefully the government will not be as late on issuing it as it was with other Obamacare related items.