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Please excuse the rant. Every year at my church, I assist seniors and others with their income taxes. This year, I have tried to help several individuals and one family who bought health insurance through the now defunct Hawaii Healthcare Connector and have had trouble getting a Form 1095. This is required to both prove that they had insurance to avoid penalties and to possibly qualify for income-based rebates.
The whole website crashed and burned after the state spent over $100 million on it, but they assured everyone that the record keeping and reporting functions would be preserved. Well guess what? They are still mailing out 1095 forms with less than a week to file. We will be filing extensions for these folks, but some of them are worried and upset by this, despite my reassurances. And I understand their concern, feeling deep down inside that there is a chance that we will never get some of them. We tried getting them from the Feds, but they could only sympathize and send us back to the state. Our tax dollars at work.
Rant over.
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prove that they had insurance to avoid penalties
Waiver will be granted for "insurance was too expensive", no documentation required.
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Maybe they could get a waiver if they hadn't purchased any, but all these people actually bought the insurance because it was affordable.
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Maybe they could get a waiver if they hadn't purchased any
If the State hasn't issued a 1095, there is no record of the purchase, right?
prove that they had insurance to avoid penalties and to possibly qualify for income-based rebates
The rest of the strategy goes like this: claim an exemption, get a waiver, file taxes by the 15th. Later, when the 1095 exists, file an amended return. (This strategy may or may not beat a simple extension, depending on rebates, etc.)
these people actually bought the insurance because it was affordable
If it was only affordable due to rebates when purchased through the connector, then the system starts to look like a scam. Perhaps someone will file a lawsuit or three.
Note also that IRS has no authority to pursue non-payment of health insurance penalties. This distinction makes no difference to most W2 employees (IRS won't be giving it back with your refund) but the self-employed can refuse to pay.
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After calling Hawaii Health Connector several times over a three month period trying to get them to send the illusive 1095a; asking for expedited service twice, and demanding a formal letter stating why they are unable to do...well...anything, I finally went ahead and filed the six month extension. I ran the exemption/waiver strategy by my tax preparer and the IRS agent; they both said it may be a good idea but be prepared to pay interest and penalties if things don't go your way. Okay, I'm good with that -- in my case I'll be getting a small refund that I'm not worried about. The tax preparer went on to say: "Call Action Line KOHN2." Well, what the hell, right? Do you think the Hawaii Health Connector folks will suddenly be less incompetent/corrupt if they are further exposed? Will they retaliate? Will it be yet another hoot in hell? Guess I'll find out.
http://khon2.com/action-line/
Un Mojado Sin Licencia
Un Mojado Sin Licencia
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Please post how it goes with the TV station. One of the folks I help did actually get a 1095A Monday, but it appears to have some incorrect figures on it based on what her records indicate she paid in premiums. There was even a note in the envelope that basically said, "If you think this is wrong, call us." She did, and they were clueless, as usual, telling her that what was on the form was all the information they had.
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I got a call from a volunteer counselor at Action Line today and I gave the poor guy an earful. He told me that he would pull together the raft of complaints filed against HHC, see what he could piece together and call me back later next week. In the mean time he suggested that I write a letter explaining the situation and attach it to my extension request so there will be documentation. I should have thought of that! Anyway, I suppose KOHN2 is trolling for a scoop as they ask if you're willing to participate in their journalistic stuff. Not sure if this really qualifies as a "man bites dog" piece since most folks are used to the discombobulated way it is.
Un Mojado Sin Licencia
Un Mojado Sin Licencia
