- When you file your 2016 form 1040 tax return, if you do not have an ACA compliant health insurance plan, you can actually choose an option to pay the penalty now, and if it gets repealed, you can ask for a refund.
- You have an option for not paying it now, and if it stays in the law, then they will come back to you with the penalties and interest.
- If you are unsure if your health insurance plan is an ACA compliant plan, feel free to reach out to us. We have some amazing health insurance professionals that can double-check your plan for you.
Hey, guys, it’s Shauna from the Tax Goddess, and today, I want to talk about the ACA penalty, the Obamacare penalty. Really interesting. Filing 2016 tax returns, which is what we’re still doing. If you have an extension, we are currently filing 2016 tax returns. You actually get a choice, a choice, which never happens. You never, ever get a choice on how you’re going to file your tax return. Normally, there’s a very black and white set of rules. In this case, because the Obamacare penalty has not really … It’s not really clear. Is it still going to be around? Is it going to get repealed? What’s going to happen?
When you file your 2016 form 1040 tax return, if you do not have an ACA compliant health insurance plan, you can actually choose, do you want to pay the penalty now, and if it gets repealed, you can ask for a refund, or do you not want to pay the penalty, and if it stays in the law, then they will come back to you with the penalties, probably plus penalties and interest. Really, really interesting.
If you are unsure if your health insurance plan is an ACA compliant plan, feel free to reach out to us. We have some amazing health insurance professionals that can double-check your plan for you, see whether or not you need to pay that penalty. If your CPA didn’t bring up that you have a choice to pay the penalty or not, definitely reach out to us. We’d be happy to take a look at the return, see if there are any other missed opportunities, things that we can help you save some money on. Feel free to reach out to us here at Tax Goddess, and hope you guys are having a great day. All right. Thanks. Bye.
