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jedidufus
New Member

I heard that Trump retroacted the Obamacare penalty. If fines were already paid for this year, can we get that money back?

 
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Coleen3
Intuit Alumni

I heard that Trump retroacted the Obamacare penalty. If fines were already paid for this year, can we get that money back?

He has issued an executive order, but that doesn't mean anything has officially changed. Persons are now physically able to bypass the ACA portion of the return but are not guaranteed that the IRS will not try to collect the money. Nothing is settled. I wouldn't count on being able to get your money back. See an opinion from the link below.

https://www.fool.com/retirement/2017/02/27/trumps-executive-order-on-obamacare-leads-to-a-big.aspx

In 2014 and 2015, the Internal Revenue Service (IRS) provided leniency to those individuals who failed to include proof of their health coverage during the previous year. However, the IRS had made it clear that any Form 1040s (the standard tax form) filed for the 2016 calendar tax year without line 61 filled in -- the line that would demonstrate to the IRS if you had health coverage or paid the SRP -- would be rejected.

But Trump's executive order changed everything.

According to Yahoo Finance, the IRS will once again be accepting electronic and paper tax returns for calendar year 2016 without line 61 filled in.

Now here's where things get tricky. On one hand, the ACA is still the health law of the land, even if it seems to be living on borrowed time. This means the individual mandate is still law, and those who choose not to purchase health insurance should be paying the SRP, unless they're exempt. On the other hand, without line 61 filled in, the IRS has no guarantee that the taxpayer paid the SRP or was even insured in 2016.

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