Mike DiSabatino CPA
Alert! 800,000 Form 1095-A's have Errors
Alert. 800,000 Form 1095-A's have Errors
Last week the Centers for Medicaid and Medicare Services announced that approximately 800,000 Form 1095-A’s were issued with errors on them. The error could cause you to file an incorrect tax return that claims a higher Premium Tax Credit than you have a right to collect.
Who it Affects. Approximately 20% of those taxpayers who used Healthcare.gov to purchase their health insurance in 2014. State operated healthcare sites, employer provided health insurance, and private insurance policy holders ARE NOT impacted by this error.
What is the problem? The government inadvertently used 2015 insurance rates on Form 1095-A instead of the approved 2014 amounts for their silver plan. This higher allowed rate causes an error in the calculation of the Premium Tax Credit on many tax returns.
What to do? If you purchased your health insurance through Healthcare.gov log into your online account. If you have an incorrect form there should be a notice telling you. If impacted, you will receive a corrected version of the form in March. If you do not want to wait for the corrected form, you will need to confirm the correct amount on your Form 1095-A. This can be done using the following tool. TaxTool: Form 1095-A Correct Silver Plan Cost.
I already filed, now what? No worries. The Treasury Department recently announced that if your tax return is already filed you WILL NOT need to file an amended tax return. However, the error may be in the government’s favor so you may still wish to review your situation to determine whether you need to file an amended tax return.
Want more information? Here is a link to the announcement.Corrected Form 1095-A Announcement
Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
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