To Pay or Not to Pay when filing your 2016 Taxes?

To Pay Or Not To Pay – That Is The Question

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Should you still submit your 1095 tax forms that show when you were covered — or, if you purchased a plan from an exchange, the amount of tax credits you received? Should you apply for an exemption from the Obamacare coverage requirement? If you were uninsured in 2016 and don’t qualify for an exemption, should you pay the Obamacare tax penalty?

California tax experts have some relatively simple advice for confused taxpayers. “Until Obamacare is no longer the law of the land, we don’t have much choice other than to continue under the current rules and regulations,” says Janet Krochman, a CPA in Costa Mesa.

This year’s tax filing deadline is April 18. If you bought coverage through a health insurance exchange such as Covered California and received federal tax credits, which are based on an estimate of your income, you must report whether your actual income varied from your estimate. Since most of you received tax credits in advance, if there’s a difference you may either owe or be owed money. This story was produced by Kaiser Health News, www.khn.org