Did you qualify for health insurance subsidies in 2014? And did you account for them on your tax return? If not, you may be at risk of losing health insurance subsidies come January.
As stated by federal law, anyone who receives an insurance subsidy must file a tax return verifying that he or she was eligible and received the appropriate amount of financial assistance.
What to file
Consumers must compare tax credits they received, based on projected income, with the amount they were legally eligible for, based on actual income. Those who received more than required will have to pay back the excess, which can be deducted from their tax refunds.
Who’s at risk?
According to the Internal Revenue Service, 710,000 who received subsidies under the Affordable Care Act in 2014 had not filed tax returns. Many of these people were otherwise not required to file, because their income was so low.
However, consumers who did not file risk losing the subsidies to help pay for premiums, which would make insurance unaffordable for some.
Relief for late filers
In the case that such consumers filed their returns, but did so late, there is a chance to restore subsidies by going to HealthCare.gov and attest to having filed. Consumers who attest and select health plans by Dec. 15, 2015, can keep subsidies for coverage starting Jan. 1, 2016. Consumers who take these steps in the last weeks of January will be considered late and their subsidies will not resume until March 1, 2016.