You might have to pay back some of those Obamacare Tax Credits.
Folks who received tax credits for a health plan through healthcare.gov in 2014 should be receiving a Form 1095-A in the mail within the next few weeks. This form will indicate the amount of tax credits you have received in 2014 and you will need to report this amount on your taxes. Make sure that the information on the form is accurate. If it is incorrect you can call the Healthcare Marketplace at 1-800-318-2596 to request a corrected form.
If you underestimated your income and received too much in premium tax credits, you'll have to pay some or all of it back.
Health policy experts say there is currently no provision in the health law that would excuse someone from repayment if an error was made by the online marketplace. This does not mean a new rule may be in place by April 15th. If you encounter a situation where you are going to have to pay back some of the tax credits you received I would suggest you wait and do not file your taxes until closer to the deadline in April in case a rule is created allowing some reduction in what you need to pay back or offering some sort of payment plan.
But there is a limit on the amount that you must pay back.
The amount you'll have to repay is capped based on your income. A couple with an income between 200 and 300 percent of the federal poverty level ($31,460 to $47,190 for a family of two in 2014) would only have to repay up to $1,500. (People with incomes above 400% of poverty — $62,920 for a couple — would have to repay the entire amount.)
There has been a lot of confusion on how to determine your income when applying for insurance on healthcare.gov. For example, Social Security Disability Income (SSDI) counts as income when figuring your eligibility for premium tax credits, but disability insurance payments received from an employer policy may or may not count as income depending on who paid the premium. You should consult a tax accountant for clarification on how much of your income is taxable.
If you discover there was an error in your premium tax credit last year call the Healthcare Marketplace at 1-800-318-2596 to change your tax credit for 2015 so the same thing does not happen to you next year.
If you need any help determining which health insurance plan is best for you please contact Todd toll free at (866) 976-9038 or by using the contact form on this site.