Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
08-10-2017 09:40 AM
I was Married Dec 10, 2016 to a woman who's previous income was substantially lower than mine. For the previous 355 days of 2016 she'd received Market Tax Credits to cover her health insurance needs. Come Tax time my HR Block tax preparer "Tammy" failed to ask us any questions pertaining to ACA issues. Under her guidance we filed Married-jointly. I did not pay the $40 "peace of mind" warrantee charge - silly me, I thought these were Tax professionals and that they were fully trained in all the latest and major tax law changes! Come May 2017 we are audited and required to pay back all $7300 in ACA premium credits!
Now, because of this careless, sloppy error on Tammy's part - we're stuck with a $7300 tax bill that could have been avoided if filing Married-separately!
HR block will never see me or my acquaintances again. Tax professionals! bologna !
08-10-2017 11:39 AM
Welcome to the H&R Block community.
I'm glad you posted this because the affordable care act tax provisions are one of my areas of expertise (I've been on top of Obamacare and have been helping people with PTC and penalty situations since it went into effect) and I may be able to help you get out of paying back some of the premium tax credit that your wife was awarded.
There is a special calculation for Form 8962 for the year of marriage that should have been completed. You are correct that your tax professional should have asked you quite a few questions that I can think of to determine how best to ho about the ACA part of your tax return and that could have prevented this situation. I cannot make any promises as to how much you will save without looking at your information, but I will gladly recalculate the 8962 for you by hand and guide you on how to fill out an new one and an amended return to send to the IRS.
Amendments must be mailed, so you if you choose to accept my help you'll be able to amend without having to return to an office and it won't cost you anything other than a couple of dollars for postage. Of course if you would like to go to an office again or use the H&R Block software to complete the amendment online those are also great options. Ask for an experienced tax professional (a senior advisor or an enrolled agent) like me if you go back to an office.
That's the good news about this as well. An amended return (Form 1040X) can be used to correct this so that you get the outcome you should have gotten in the first place. You can also still get a refund of anything you paid in excess of what you actually owed, and you can do so for three years from the original due date of the tax return.
You mentioned "Peace of Mind" so I wanted to be sure and let you know that "Peace of Mind" covers additional tax resulting from errors made by H&R Block up to $6,000. Under the standard H&R Block guarantee you get a free amendment or correction to your tax return in the event of a mistake, but there is normally a 60-day time limit on that so they may or may not still honor it. My advice if you want to get some free help from an office would be to speak to the district manager in your area about what's happened and see what they have to say. The DM will be the person who most likely be able to help you with the guarantees, etc.
Again, I'll be glad to help, and to get started you'll want to click on my name and send me a private message (I don't want you to post your information out here where it will be visible to everyone) including (1) your 1095-A information which you'll need to describe line-by-line for me since you cannot attach anything to private messages on the community site, (2) your total income for the year in question, (3) your wife's total income for the year in question, (4) your joint adjusted gross income as shown on your 1040 return for the year in question, and (5) your tax family size. All of the above are necessary to recalculate your 8962, and I'll look at everything as soon as I hear from you.
Always glad to help.
Senior Tax Advisor (Tampa, FL)