The flood of phones calls to my office (McVay Business Services) has begun. Over the past 3-weeks I have received over 10 calls regarding letters from the I.R.S. that demand some or all of their current or past year health care tax credits to be repaid. These letters are just starting to arrive in taxpayers mail boxes. Ask, why now? The reason is for years this administrative nightmare of advance credits to pay for health insurance have never been reconciled properly. Now that the I.R.S. has caught up on past year tax credit reconciliations with your yearly tax return filing the damage is now coming to light.
Why would I own money back for something I already received. The ACA law allowed the I.R.S to front credits to you and pay for your health insurance. This was great to allow the Gov. to help pay some or all of your health insurance so you had less or no out of pocket cost based on your last years income. This is fine if your income stays the same or goes down. Each year these credits are reconciled on your current years return and if you made more money than the past year you actually received more credit than was due to you. If you don't file a tax return and reconcile these credits you will now see your current health insurance credit disappear and you will be responsible for the entire cost of your monthly health insurance plan.
Because of the good economy, many taxpayers are seeing they owe money now as their income raises. I.R.S reports that the last 2 years, installment agreement request to pay back money to the I.R.S are up over 2000%. In 2019, as of August the I.R.S is still backlogged processing 2018 installment agreements.
Because the catch-up process has been completed at the I.R.S, letters are now being mailed to taxpayers that have either not filed prior year returns, missed reporting and reconciling their year end form 1095-A or made more money one year that may allow the I.R.S to demand this money back.
I have clients having to pay as low as a few dollars to thousands and even $17,000 based on their reported income and type of healthcare plan.
There are options however ! Mike McVay is a licensed tax preparer that not only has been in business over 20+ years, he has also teamed up with health insurance expert Richard Penrose of Coastal Family Insurance. Together Mike and Richard form a great partnership at their office located at 5336 N Blue Angel Parkway Pensacola, FL 32526.
We have options on both sides to help figure out these situations when it comes to income tax, health insurance, tax credits, deductions and credit repayment.
McVay has I.R.S Installment Agreements that can fit into your budget and get you back on track.
Call us today if you need any additional information. Both McVay Business Services and Coastal Family Insurance offers free consultation to navigate you through these rough waters.
Mike McVay, Tax Accountant 850-725-5696
Richard can help you figure out the Health Insurance Marketplace !
Coastal Family Insurance is owned and operated by Richard Penrose. We will take the time to explain and answer all of your questions. If we do not know the answer, we will find the answer. We strive to help our clients obtain the best possible insurance coverage at the best possible price. We will always do our very best for you our client.A service agency, Coastal Family Insurance is owned and operated by Richard Penrose. We will take the time to explain and answer all of your questions. If we do not know the answer, we will find the answer. We strive to help our clients obtain the best possible insurance coverage at the best possible price. We will always do our very best for you our client.
McVay Business Services - Accounting & Tax Services Pensacola, FL
Obamacare Tax Nightmare - If your paying some or all your tax credits back on your income tax for prior years, your not alone. We have options for you!
Mike McVay, Tax Accountant Blog
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, Fl
Mike McVay, Accountant -Experienced IRS Tax Resolution Specialist