Some Federal Exchange Enrollees Get Tax Filing Reprieve

The Obama administration last week announced that U.S. residents who received incorrect tax forms regarding their health insurance coverage under the Affordable Care Act will not face penalties for missing the April 15 tax filing deadline, The Hill reports (Ferris, The Hill, 4/3).

Background

In February, the Obama administration announced that about 20% of U.S. residents who enrolled in coverage for 2014 through the federal exchange received 1095-A forms that included the wrong value for the local premium, which influenced other tax calculations. According to an HHS official, "Because of an intermittent defect in the code that was used to create these forms, the premiums listed were for 2015" instead of 2014. As a result of the error, taxpayers might claim a subsidy that is either higher or lower than that for which they are eligible.

A similar mistake occurred in forms sent out by state-run exchanges. In March, Covered California officials said they had mailed out about 120,000 corrected tax forms with tens of thousands additional residents expecting updated tax forms by the end of the month (California Healthline, 3/24).  

Those who already filed using the incorrect information were not required to refile, though the government encouraged them to "consult with their tax preparers" to determine whether they should do so.

Extension Details

In a statement, the Department of Treasury said that those who received incorrect forms and are unable to file correctly by the April 15 deadline will have until Oct. 15, if they request an extension.

The government did not estimate how many people would seek an extension. As of late March, about 80,000 U.S. residents had not yet received updated information (The Hill, 4/3).