1.8M Households Could Lose ACA Subsidies Over Tax Return Issues
About 1.8 million households that received subsidies to help them purchase coverage through the Affordable Care Act's exchange could lose that help because they have not filed or had issues filing their tax returns, the AP/New York Times reports.
Such households account for about 40% of the 4.5 million total households that received the subsidies last year. According to the AP/Times, low-income families unaccustomed to the complicated tax-filing process might not be aware the subsidies are tied to tax returns.
IRS and HHS in the coming months plan to reach out to households at risk of losing subsidies before the next open enrollment period begins on Nov. 1.
The Department of Treasury said that of the 1.8 million households that might lose subsidies in 2016:
- About 760,000 filed taxes but left out Form 8962, which is used to track ACA subsidies;
- About 710,000 did not file a tax return for 2014, even though they were legally required to do so; and
- About 360,000 requested an extension (AP/New York Times, 8/4).