Tax forms could pose challenge for HealthCare.gov

The Republican ^

[matt04]

If you got health coverage through President Barack Obama's law this year, you'll need a new form from your insurance exchange before you can file your tax return next spring.

Some tax professionals are worried that federal and state insurance marketplaces won't be able to get those forms out in time, creating the risk of delayed tax refunds for millions of consumers.

The same federal agency that had trouble launching HealthCare.gov last fall is facing the heaviest lift.

The Health and Human Services Department must send out millions of the forms, which are like W-2s for people getting tax credits to help pay health insurance premiums.

The form is called a 1095-A, and it lists who in each household has health coverage and how much the government paid each month to subsidize their premiums. Nearly 5 million people have gotten subsidies through HealthCare.gov.

If the forms are delayed past their Jan. 31 deadline, some people may have to wait to file tax returns -- and collect their refunds.

A delay of a week or two may not sound like much, but many people depend on their tax refunds to plug holes in family finances.

The uncertainty is unnerving to some tax preparation companies, which try to run their filing season operations like a military drill. The Obama administration says it's on task, but it won't provide much detail.

[matt04]

The Obama administration says it's on task, but it won't provide much detail.

Well, that's reassuring.

[Menehune56]

I suppose Obamacare subsidies will be considered taxable income with no offsetting withholding. The reaction by the sponge class when they find they OWE money and won’t be getting a refund will be interesting to say the least.

[ken in texas]

Let's see, they're "on task" but won't tell us anything.

Sounds like they don't have a strategy yet.

[matt04]

Does Blame Bush count as a stratgey?

[yorkiemom]

You would think, but I’ve never read anything about the subsidies being taxable.