Category Archives: Tax Issues

ObamaCare tax prep requirements are catching subsidy recipients unaware

The Affordable Care Act made preparing and filing tax returns even more complicated last year (I know, you’d think that wasn’t possible) because of the gymnastics involved in running health insurance subsidies and credits through the tax code.

Now we’re learning that thousands of people might lose their health insurance subsidies because they didn’t file a 2014 tax return.

As The New York Times reports,  if you got a health insurance subsidy, you have to file a tax return so the government can confirm that your income was low enough to qualify for the credit.

That means that many people who otherwise didn’t have to file tax returns had to send in a Form 1040, just because of the Obamacare subsidy.

Over the summer, the IRS sent notices to more than a million people who got insurance subsidies but hadn’t yet filed returns, warning them that they could lose all their subsidies. But since people can send in extensions and file a valid return up until October 15, that served to unnecessarily scare the shit out of a bunch of people who hadn’t done anything wrong.

I’m hoping that there’s going to be a procedure to help people who needed to file returns but either didn’t do so or filed after October 15. In the meantime–can you believe it?–the season for shopping for health care coverage is upon us again, and folks looking to get started on that process can get some basis information by going to the ObamaCare website.

 

 

Corporations say DOMA is a big tax hassle

I always say that everything’s about taxes. The current legal wrangling about gay marriage proves it once again. More than 200 companies have signed onto a brief filed with the Supreme Court saying that the Defense of Marriage Act has become an administrative hassle, forces them to discriminate against different classes of married employees, and… Continue Reading