As the deadline approaches for filing personal tax returns for those who filed extensions for the 2018 tax year, we often have to remind individuals that although they can file an extension to file the returns by the October 15th deadline, it does not extend the time to pay the taxes. With all the changes that took place for the 2018 tax year filing, many people filed extensions. Throughout the year, individuals who are filing their taxes on extension may find themselves owing more than they anticipated. We anticipate many more people will experience the same when filing by October 15th deadline.
We receive many calls about owing taxes because individuals had insurance premiums through Covered California and since the premiums are based upon income, many individuals who made more money than initially claimed in the beginning of the year, are now owing thousands of dollars to repay the underpayment of premiums which appears in an unwelcome letter from the IRS.
Not to debate how Covered California can assist individuals better, but there are certain guidelines that are expressed in very lengthy format causing many individuals not to read in its entirety and fail to report changes to their situation throughout the year. It can be argued that Covered California can or should be more efficient in providing customer assistance, the problem is very real for many individuals with a bill for thousands of dollars who claim they didn’t know they had to repay premiums. Before you sign up for coverage, be sure and do some research, ask a lot questions, and consult consult consult.
If you should find yourself in a situation where you now owe thousands of dollars, give us a call and schedule a consultation.
