Tax code changes linked to PPACA cause worry among taxpayers

The provision of the Patient Protection and Affordable Care Act that requires individuals that do not obtain healthcare coverage to report it on their tax returns and face penalties comes into effect this year. Complications or confusion arising from these tax code changes may lead to many people seeking professional help from accountants and preparation services, according to the Boston Globe.

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Filing may be complicated for individuals who purchased insurance plans through the federal or state exchanges, received subsidies or who remain uninsured, according to the report.

Those without health insurance will need to determine if they are required to pay a penalty or if they qualify for an exemption, which could include earning below a certain amount of income or having religious objections.  

According to the report, those who received federal subsidies for healthcare coverage will have to calculate whether they received the appropriate amount of financial assistance based on their income using a 1095-A form and Form 8962. If someone miscalculated and was granted too much, they may have to pay the government back.

Fifty-two percent of H&R Block’s clients who enrolled in health insurance plans through state or federal marketplaces have been required to pay back a proportion of their subsidy, according to the report.

According to the report, tax specialists predict most filers should be able to handle the new requirements without seeking professional help, because those who are insured through their jobs just need to indicate they have employer-provided coverage on their tax forms.

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