My First "Clawback Casualty"

[Yagents]

Looks like Forbes reads the forum to get their next talking point:

Have You Heard The One About The Tax Credit That You Pay To The IRS? - Forbes

 

[AllenChicago]

I hope most of the Subsidized people use software to file their 2014 taxes.

Those who typically fill out the IRS 1040 that comes in the U.S. Mail will be frustrated when they arrive at the Subsidy calculation routine. The APTC-related forms won't be in their "package".

Those who file the 1040A or 1040EZ won't even see a subsidy/aptc question. They'll complete the form only to have it rejected by the IRS at some point down the road...maybe.

 

[RayNY]

I hope most of the Subsidized people use software to file their 2014 taxes.

Those who typically fill out the IRS 1040 that comes in the U.S. Mail will be frustrated when they arrive at the Subsidy calculation routine. The APTC-related forms won't be in their "package".

Those who file the 1040A or 1040EZ won't even see a subsidy/aptc question. They'll complete the form only to have it rejected by the IRS at some point down the road...maybe.

2014 1040/a/ez/etc has a line for individual responsibility payment. Well, at least the drafts do. I'd expect the ones that get mailed out will have this line.

It refers you to the instructions for form 8965 in order to fill out this line.

Have MEC? Check the box, leave the line blank, move on. No reporting of ID number, carrier, premium, etc.

Uncovered for 3 or more months and not exempt? Page 5 of the 8965 instructions has a worksheet to calculate your fine/tax/penalty/shared responsibility payment/whatever you want to call it. Box on 1040 isn't checked, fee goes on the line.

On exchange? 1095 shows your plan/info, form 8962 is used to reconcile the APTC.

Exempt? Form 8965 (not the instructions) is filled out and included with the filing.

Draft forms can be found here, just search by number, if you want to see them for yourself: Draft Tax Forms

 

[AllenChicago]

2014 1040/a/ez/etc has a line for individual responsibility payment. Well, at least the drafts do. I'd expect the ones that get mailed out will have this line.

Ray, the IRS says you can't use form 1040EZ if you received, or want to claim the ACA's Advance Premium Tax Credit. But thanks for letting me know that the IRS 1040A can be used.
ac

 

[RayNY]

Ray, the IRS says you can't use form 1040EZ if you received, or want to claim the ACA's Advance Premium Tax Credit. But thanks for letting me know that the IRS 1040A can be used.
ac

You're right on that one.

1040ez can be used if you have MEC (no subsidy), are exempt, or have no coverage/non-compliant/lapse of three months or more and are getting a penalty.

It does not have the line the 1040a does (specifically, 45, "net premium tax credit, attach form 8962") which is where the APTC would be reconciled.

I'm still trying to make sense of all this, I'm getting phone calls left and right with people excited to file their taxes ASAP.

 

[AllenChicago]

I'm still trying to make sense of all this, I'm getting phone calls left and right with people excited to file their taxes ASAP.

I'd better click and read your profile. Maybe I can learn from it how to make my clients "excited" to file their taxes too! My subsidy recipients are facing the 2015 filing event with higher than normal trepidation.

 

[somarco]

I hope most of the Subsidized people use software to file their 2014 taxes.

Most have no clue how to do their taxes and will use a service like H&R Block or take advantage of one of the free services at check cashing / payday loan establishments.

Cobb said people who are used to filing the pared down 1040-EZ will no longer be able to do so if they received any subsidies.

 

[RayNY]

I'd better click and read your profile. Maybe I can learn from it how to make my clients "excited" to file their taxes too! My subsidy recipients are facing the 2015 filing event with higher than normal trepidation.

Allow me to elaborate:

Excited to get their refund as soon as possible. No, they're not looking forward to adding line 9 and 10 and subtracting it from 11, they just want to get that check back as soon as they can.