about filing for a tax deadline extension.
If the government thinks a consumer was on the program longer than they really were, is the insurance company benefiting from the incorrect subsidy?
Covered California’s Scullary says it’s not likely – but he didn’t rule it out. “I suppose that’s possible but certainly… the health insurance companies will have a reconciliation with the IRS just as we do and all the information is going to have to align,” he says. Scullary says the federal government disburses the subsidy dollars to the health insurance companies, based on reports they get from Covered California.
So what should consumers do if they received a postcard or believe their tax form is wrong?
There are three categories of consumers that we are talking about here. For the record, we are not talking about those who received a correct form and who can go ahead and file taxes.
-Consumers who received a correction postcard from Covered California and who have not filed taxes, should wait for the new tax form before filing their taxes, says Scullary.
-Those who received a correction postcard from Covered California after filing their taxes, should wait for Covered California to send them the corrected form. Then, they should take it to their tax agent to find out if they need to amend their taxes, the agency says.
-The third group are households who did not receive a postcard but believe their tax form is incorrect. Covered California says they should submit a dispute form and explain the discrepancies between the agency’s form and their personal records. Covered California says it will review and respond to all disputes.
I hear the IRS is giving people who used the federal exchange a break. Does that mean we get
No, Californians are not included. It’s true that the federal government announced that those who already filed taxes using erroneous forms do
not have to file amend returns, even if they owe more. But that applies only to people who used the federal healthcare.gov exchange.
So California taxpayers, if you already filed your taxes you have to wait for the corrected form and file an amended return if you determine that the amount you owe has changed.
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To see full story go to http://www.scpr.org/blogs/health/2015/02/23/17941/covered-california-messed-up-my-tax-form-what-s