IRS: Five Common Questions from Taxpayers

From Neikirk, Mahoney & Smith, the IRS has released five common questions that they receive from taxpayers, along with the answers.

1. What is included in household income?
"For purposes of the PTC, household income is the modified adjusted gross income of you and your spouse if filing a joint return, plus the modified AGI of each individual in your tax family whom you claim as a dependent and who is required to file a tax return because their income meets the income tax return filing threshold. Household income does not include the modified AGI of those individuals you claim as dependents and who are filing a return only to claim a refund of withheld income tax or estimated tax."

2. The IRS is asking to see my 1095-A. What should I do?
"You should follow the instructions on the correspondence that you received from the IRS.  You may be asked for a copy of Form 1095-A in order to verify information that has been entered on your tax return."

3. If I got advance payments of the PTC, do I have to file even if I never had a filing requirement before?
"Yes. If you received the benefit of advance payments of the premium tax credit, you must file a tax return to reconcile the amount of advance credit payments made on your behalf with the amount of your actual premium tax credit.  You must file a return and submit a Form 8962 for this purpose even if you are otherwise not required to file a return."

4. Marketplace says I did not file, but I did file before the extended due date.  What should I do?
"In advance of the open enrollment period that runs through January 31, 2016, the Marketplace sent Marketplace Open Enrollment and Annual Redetermination letters to individuals who might not have filed a tax return. Follow the instructions in the letter you received."

5. What are my options to receive help with filing a return and reconciling?
"Filing electronically is the easiest way to file a complete and accurate tax return as the software guides you through the filing process. Electronic filing options include free Volunteer Assistance, IRS Free File, commercial software, and professional assistance."

For more information from the IRS, check out their website at irs.gov
You can also contact Neikirk, Mahoney & Smith PLLC at 502-896-2999, or through our website contact form.