Receiving a Corrected Form 1095-A;
Filing an Amended Tax Return
If you enrolled in qualifying Marketplace health coverage, then you have probably filed a tax return based on a Form 1095-A that you received from the Marketplace. Your Marketplace may have subsequently told you that your original Form 1095-A contained an error and sent a corrected Form 1095-A. Comparing the forms can help you determine whether you are likely to benefit from filing an amended tax return.
Specifically, you are likely to receive a larger refund or owe a smaller tax payment using the corrected Form 1095-A if the two Forms 1095-A generally show the same information, but any one of the five scenarios below is true on the corrected form.
Second Lowest Cost Silver Plan Premium is Larger:
The monthly premium amounts of the second lowest cost silver plan, shown in Part III, column B, lines 21-32, are greater on the corrected form than on the original form.
Monthly Premium Amounts are Larger:
The monthly premium amounts of the plan in which you enrolled, shown in Part III, column A, lines 21-32, are greater on the corrected form than on the original form.
Advance Payment of the Premium Tax Credit Amounts are Lower:
The monthly amounts of advance payment of the premium tax credit shown in Part III, column C, lines 21-32 are smaller on the corrected form than on the original form.
More Months of Coverage:
Your corrected Form 1095-A lists more months of coverage and your situation meets all the following conditions:
- The corrected Form 1095-A shows more months of coverage than the original form. This means that the corrected form shows positive values in more of the rows under Part III than the original form.
- The values are the same on the corrected Form 1095-A for the months that the original form showed coverage.
- On your original tax return, you claimed a net premium tax credit, meaning you entered a value on line 26 of the Form 8962 you filed.
Fewer Months of Coverage:
Your corrected From 1095-A lists fewer months of coverage and your situation meets all the following conditions:
- The corrected Form 1095-A shows fewer months of coverage than the original form. This means that the corrected form shows positive values in fewer of the rows under Part III than the original form.
- The values are the same on the original form for the months that the corrected Form 1095-A shows coverage.
- On your original tax return, you reported owing a repayment of excess APTC, meaning you entered a value on line 29 of the Form 8962 you filed.
If there were multiple differences between your original and the corrected forms or you are not sure if you would benefit from filing an amended Tax Return, you may want to consult with a tax professional.
Filing an Amended Tax Return
What should you do if you already filed your federal tax return and then discover a mistake? First of all, don’t worry. In most cases, all is resolved by filing an amended tax return. But before you do that, here is what you should be aware of when filing an amended tax return.
Taxpayers should use Form 1040X, Amended U.S. Individual Income Tax Return, when filing an amended tax return (corrected). You must file the corrected tax return on paper. An amended return cannot be e-filed. If you need to file another schedule or form, don’t forget to attach it to the amended return. Please call if you need assistance or have any questions about Form 1040X.
Filing an amended tax return should only be done to correct errors or make changes to your original tax return. For example, you should amend your return if you need to change your filing status, or correct your income, deductions or credits.
Normally there is no need for you filing an amended tax return to correct math errors because the IRS automatically makes those changes for you. Also, there is no need of filing an amended tax return because you forgot to attach tax forms, such as W-2s or schedules. The IRS normally will mail you a request asking for those.
Note: Eligible taxpayers who filed a 2014 tax return and claimed a premium tax credit using incorrect information from either the federally facilitated or a state-based Health Insurance Marketplace, generally do not have to file an amended return regardless of the nature of the error, even if additional taxes would be owed. The IRS may contact you to ask for a copy of your corrected Form 1095-A to verify the information.
Nonetheless, you may choose filing an amended tax return because some taxpayers may find that filing an amended return may reduce their tax owed or give them a larger refund (see below for additional information).
If you are amending more than one tax return, prepare a 1040X for each return and mail them to the IRS in separate envelopes. Note the tax year of the return you are amending at the top of Form 1040X. You will find the appropriate IRS address to mail your return to in the Form 1040X instructions.
If you are filing an amended tax return to claim an additional refund, wait until you have received your original tax refund before filing Form 1040X. Amended returns take up to 16 weeks to process. You may cash your original refund check while waiting for the additional refund.
If you owe additional taxes with Form 1040X, file it and pay the tax as soon as possible to minimize interest and penalties. You can use IRS Direct Pay to pay your tax directly from your checking or savings account.
Generally, you must file Form 1040X within three years from the date you filed your original tax return or within two years of the date you paid the tax, whichever is later. For example, the last day for most people to file a 2012 claim for a refund is April 15, 2016. Special rules may apply to certain claims. For more information see the instructions for Form 1040X or call the office.
You can track the status of your amended tax return for the current year three weeks after you file. You can also check the status of amended returns for up to three prior years. To use the “Where’s My Amended Return” tool on the IRS website, just enter your taxpayer identification number (usually your Social Security number), date of birth and zip code. If you have filed amended returns for more than one year, you can select each year individually to check the status of each.
- Taxes are confusing to the layman
- Many States are still struggling with their Exchanges and Sales Screens for Plan Pricing and therefore quoting and selling mispriced Plans
- Commingling these two individually difficult concepts creates a challenge for many people in the Exchanges … exponentially heightening the degree of the problem
- This confusion will be mediated by the IRS … administering their sense of fair play.
Here is a link to the Exchanges or Marketplaces which provide Tax Payers Form 1095-A: http://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/The-Health-Insurance-Marketplace
Naturally should the Supreme Court rule that Tax Payers from the many States without Exchanges or Marketplaces, who used the Federal Marketplace out of necessity therefore, are not entitled to subsidies, then this problem will mushroom and politically explode!
If you have any questions or need help filing an amended return please call.