Implementing the new healthcare laws has seen its fair share of challenges and it is once more having some difficulties. First of all, the Obama administration has announced that it will extend the deadline in effort to boost enrollment numbers for people who otherwise might receive a tax penalty. So for those who were unaware of the tax penalties resulting for not having health coverage, now have a chance to enroll. Secondly, it was reported that nearly 800,000 people were sent incorrect tax information about their coverage in 2014. Because this tax information determines how many credits you receive to offset health coverage premiums, those that filed their taxes already may have some issues.
Those that did receive incorrect tax statements regarding health coverage are being notified according to the IRS. The people that filed their taxes and got too much of a credit may have to reimburse the government while those with too low a credit may be entitled to a refund. Tax credits for Health coverage are determined by cost of premiums in the area you live as well as your incomes.
Starting March 15 people who are uninsured are allowed to visit HealthCare.gov and apply for coverage until the end of April. The decision for an extension was pushed amongst the senate because many people are unaware of the tax penalty for not having health coverage until they file their taxes. The extended deadline will allow them to apply for health coverage and prevent or lower any tax penalty. For 2015, you must have health coverage or the fine grows from the greater of $325 or 2% of your income. Make sure you are aware of the tax penalties involved with the Affordable Care Act and if you should have any concerns consult a tax professional like Al Cartlidge III, CPA.
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