Did you prepare returns for clients that had bad Obamacare subsidy data (Read our 800,000 Incorrect Tax Statements article) If so, you are about to have some great news for them! Out of the 800,000 incorrect tax statements, the 50,000 taxpayers who already filed are in the clear. Taxpayers who already filed returns based on an incorrect 1095-A will not need to amend their returns. The government won’t collect on any underpayment according to sources at the Treasury Department.
On the other hand, taxpayers owed a larger subsidy can still file amended returns. A Treasury spokesman said in an email. “Individuals may want to consult with their tax preparers to determine if they would benefit from filing amended returns. Affected individuals who have not yet filed their taxes should wait to file until they receive their corrected forms.”
Do you have clients that will benefit? If the original 1095-A form lists a benchmark premium of $100 and the updated form lists a premium of $200, then according to the Treasury your clients are likely to benefit from filing an amended return.
The remaining 750,000 individuals left to wait for corrected forms will either kick themselves for not filing earlier or be thankful they don’t have to amend their taxes. It will be interesting to see how things pan out for those who were affected in the next few weeks. If we see any analysis on this issue we will be sure to post it here.
UltimateTax Service, Inc. is a professional tax software provider. We provide this information as a service to our clients and friends. The information we post is for your viewing and knowledge pleasure. We take all information we post seriously and stand behind what we post. However, the information we post is not meant to be used as your sole position in tax cases.