If you obtained health insurance offered through an Affordable Care Act (“ACA”) exchange, such as Covered California, did you know that you are required to report changes in income and other life changes to the IRS throughout the year? Hundreds of thousands of Americans will find out the hard way, with a tax bill from the IRS.
Don’t get caught in that unfortunate situation. If you obtained health insurance through Covered California, you likely received a “premium tax credit” to offset the cost of insurance, based on the estimated income you provided. However, if the actual income reported on your tax return next year is different than the estimated income you reported, the IRS may require you to pay back that tax credit. For many, that could be a large unexpected tax bill.
Staying informed of intricacies of the tax code is difficult, but getting caught off guard by the IRS is even worse. If you run into problems with the IRS or Franchise Tax Board, contact Tresp Law, APC today.
ELIZABETH A. TRESP, ATTORNEY AT LAW IS A MEMBER OF THE STATE BAR OF CALIFORNIA, THE SAN DIEGO COUNTY BAR ASSOCIATION, PROBATE ATTORNEYS OF SAN DIEGO, AND THE AMERICAN BAR ASSOCIATION. ELIZABETH A. TRESP IS ADMITTED TO PRACTICE BEFORE THE UNITED STATES TAX COURT AND THE UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF CALIFORNIA. CONNECT TO ELIZABETH ON FACEBOOK, GOOGLE+, AND LINKEDIN. CONTACT US TODAY FOR ALL OF YOUR FAMILY'S LEGAL NEEDS, INCLUDING ESTATE PLANNING, WILLS, TRUSTS, TRUST ADMINISTRATION, ESTATE AND TRUST LITIGATION, PROBATE, TAX CONTROVERSY, TAX AUDITS, TAX PLANNING, ESTATE TAXATION, AND ALL ASPECTS OF FEDERAL & CALIFORNIA TAX LAW.
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