A caution to those taxpayers that received the premium assistance credit in 2014….the income you used to apply for the credit was your 2012 income. If your 2014 income is higher than your 2012 income, you may have to pay back any excess credit received. This will be true for every year that you receive a credit. The income you apply with is only an estimate of your credit. If your income is steadily growing, you will have to payback the credit when you file your tax return. One way to avoid having that unexpected tax liability is to overstate your income on the application. If, when you file your return, your income was lower than you expected, you will get the additional credit. But if it is higher, you will owe additional money with your tax return.
We are available to help you with these complicated tax issues. Call today for an appointment. O’Connor & CO CPAs 303-263-2676