More than 300,000 taxpayers have overpaid the IRS because they incorrectly indicated that they owed the Individual Shared Responsibility Payment (ISRP), the tax penalty related to the Affordable Care Act, on their 2014 tax return.
This was discovered and outlined in a annual report by the National Taxpayer Advocate. When it sampled IRS tax return data, the NTA found that a large number of taxpayers didn’t owe the penalty that they incorrectly indicated on their tax returns.
The penalty is required for taxpayers who don’t have health insurance that complies with the Affordable Care Act, also known as Obamacare. The taxpayers in the sample didn’t actually owe the penalty tax because their income was below the threshold and thus they were exempt from what’s known as the “individual mandate.”
The NTA report found that the average ISRP paid was over $110.
Here’s what you need to know: If your household income in 2014 was below thethreshold for triggering the penalty and you included an amount on line 61 of your 1040, you should be eligible for a refund of the amount included on line 61.
Read the full report here.
Contact Steven G. Cosby, MHSA, Group Health Insurance Broker and Agent with Cosby Insurance Group, with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.
