Americans are being advised to review a bit of their tax information to make sure there will be no unwelcome surprises.
Many people across the United States look forward to a tax refund, every year, but this is the first time that the credits from the health care reform will come into play, and many experts are now recommending that individuals review some of their information to make sure that they won’t be receiving less than expected – or miss out on a potential opportunity for more.
Americans need to check to see if their predictions regarding how much they would make are accurate.
For individuals whose income for 2014 will actually be higher than expected when applying for an insurance plan as required by the health care reform, it could mean that next year’s tax refund could actually be much lower than expected, or it could even be eliminated, for that matter. Therefore, it is a good idea for everyone to check their household incomes and confirm that they are still on track with what had been predicted back when the health plans were being purchased.
As income grows, the health care reform regulations say that there is eligibility for a smaller tax credit.
Therefore, if an individual and/or his or her spouse were to receive a raise, obtain a new job with higher pay, finally break out of unemployment, or receive commissions or a bonus that was larger than expected, it could trigger the tax credits associated with the required insurance coverage under the individual mandate of the Affordable Care Act, to shrink. That is, unless the changes have been identified and reported.
Therefore, by promptly checking into actual income at certain points throughout the year, it makes it easier for Americans to know if their figures are still accurate and it gives them the time that they require in order to report the changes. This way, they can overcome many of the tax credit challenges that could otherwise develop.
Unfortunately, many consumers don’t know that this risk with the health care reform tax credits even exists. According to the Jackson Hewitt Tax Service health care programs vice president, George Brandes, “More than a third of tax credit recipients will owe some money back, and (that) can lead to some pretty hefty repayment liabilities.”