There is a special Obamacare enrollment period from March 15 -April 30, 2015 for those who learned they received a tax penalty for not being sufficiently covered in 2014.
The tax penalty this year was a bummer for those who took the risk of being uninsured, but the penalty for next year will get even uglier by essentially doubling in amount.
Key Points On Subsidies & Tax Penalties
- If you underestimate the amount of income that you will generate in 2015, then you will be paying back subsidies next year at tax time.
- The subsidy amount is based on income generated and not adjusted gross income.
- Even if you have health insurance in 2015, you will have to pay the tax penalty if the insurance is not qualified per Obamacare rules and regulations.
- Keep good records on your subsidies. The automated systems have already generated a percentage of incorrect statements regarding subsidies that resulted in incorrect tax amounts owed.
- Keep good records on all pertinent information. Healthcare.gov and the individual state systems are still relatively new which means that there is room for error on data that could impact you.
The IRS and the HHS have got their hands full dealing with the complexity of the system. The Dogz suspect there will be continuing unanticipated consequences with the health insurance itself, tax implications and subsidies that will require modifications and adjustments as the mega-giant continues to unfold.