Those with Obamacare subsidies could face tax surprise: ‘I was floored’

katu.com

“I think, in general, there’s going to be a lot of different surprises for a lot of different reasons,” Lettenmaier said.

For one, Lettenmaier said people who purchased insurance through the exchange marketplace will likely receive new forms. The implementation of the ACA requires taxpayers to report their health insurance coverage. By early February, expect to receive form 1095-A, the Health Insurance Marketplace Statement.

Secondly, she said informing the exchange of any life changes – income or otherwise – can help prevent the government from overpaying for premiums. Once the exchange is notified, they will make adjustments to the premium subsidies accordingly.

“You don’t have to take any of the subsidy monthly, that’s your choice,” Lettenmaier said. “You can take all of the monthly subsidy that’s allotted, a portion of it, or you can wait until the end of the year and just have it be a tax credit on your entire tax return.”

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