How to fix your healthcare tax glitch

800,000 Americans affected nationwide

The rollout of the Affordable Care Act has been anything but trouble-free. There were computer glitches during the open enrollment in 2013 and now there's a tax problem for about 800,000 taxpayers. The glitch has affected about 20 percent of the taxpayers who purchased insurance through the Marketplace and used tax credits to lower their premiums.

Mayas Bolis owns a hair salon in Northville. She says it's been a bumpy road trying to buy coverage for her family through the new insurance Marketplace.

"It's been frustrating hours and hours spent on the phone," she told Ruth to the Rescue.

She recently found out she's one of the thousands of Americans affected by the tax glitch. She received a phone call on February 24th.

"I'm frustrated. I don't know if I'm going to owe money. I don't know if I'm going to get money back."

Taxpayers Warned Not to File

When the government announced the glitch, it also warned those affected to wait to file their taxes. It said the updated information on Form 1095A should start arriving the first week of March. Unfortunately for Bolis, she has already filed her 2014 tax returns.

"So, I called the Marketplace and the woman told me I shouldn't have filed. And I said, I did so what do I do now?" Bolis said.

During that call, Bolis was told she would need to file an amended return, but that's changed. The Treasury Department has posted a statement saying about 50,000 people, affected by the glitch, have already filed their taxes. It says the IRS will not pursue those people if they might owe any additional funds.

Bolis was relieved to hear that update, but says she will check with her bookkeeper to see if she might be better off filing an amended return. The Treasury Department says some people might increase their refund by filing amended returns.

Still, Bolis wishes the government would get its act together and make things run more smoothly, with the tax information and overall.

"Take responsibility. Tell us what to do. Get it straight!", she said.

Ruth to the Rescue touched based with both the Treasury Department and the Center For Medicare and Medicaid services, which runs the Marketplace.
The CMS shared the information below.

Consumers with questions or who want to learn more are encouraged to visit www.healthcare.gov/taxes.

Representatives at the Marketplace Call Center are also standing by to answer consumer questions and are able to provide the new guidance issued by Treasury. The call center is open 24/7 at 1-800-318-2596.

The U.S. Treasury Department posted this guidance:

Last week, CMS announced that about 20 percent of the tax filers who purchased health insurance from the federal Marketplace received statements (or form 1095As) that include an incorrect piece of information. CMS released detailed information about the error, which is available here http://blog.cms.gov/. Treasury estimates that approximately 50,000 tax filers (or less than 0.05% of total tax filers) already have filed their taxes using these incorrect form 1095As. We have concluded that these individuals do not need to file amended returns. The IRS will not pursue the collection of any additional taxes from these individuals based on updated information in the corrected forms. Nonetheless, some individuals may choose to file amended returns. A tax filer is likely to benefit from amending if the 2015 monthly premium for his or her second lowest cost Silver plan (or "benchmark" plan) is less than the 2014 premium. For example, if a filer's original form lists a benchmark premium of $100 and her updated form lists a premium of $200, it may be in her interest to refile. Individuals may want to consult with their tax preparers to determine if they would benefit from filing amended returns. As CMS announced last week, affected individuals who have not yet filed their taxes should wait to file until they receive their corrected forms.