If you were one of the 50,000 people who were sent incorrect 1095-a forms this year, there is some good news.
The agency says it won’t collect any additional taxes from the around 50,000 people filed their tax returns using the incorrect data on their 1095-A forms.
That’s only fitting, since the Health and Human Services Department revealed that the wrong form info was the result of “an intermittent defect in the code that was used to create these forms.” Instead of listing information about Obamacare benchmark plans for 2014, the forms listed 2015 data.
But there is a limit to the IRS’ forgiveness.
Limited to early filers: Although almost a million policy purchasers got error-ridden 1095-A forms, the tax relief only applies to the 50,000 or so who have already filed their taxes using the erroneous 1095-A data.
Corrected documents will be sent to everyone else affected by early March, says the IRS and Healthcare.gov. So wait for that good form before filling out your taxes.
And if you then find that you should have received a smaller tax credit and owe more, you’ll have to pay that amount and ask the IRS for its previously announced relief on any associated penalties.