More Americans Opt to Pay Individual Mandate than Estimated

Thursday, July 16, 2015

The IRS released its mid-year report to Congress this week presenting the highlights of the recently concluded 2014 tax filing season as they relate to the ACA.  The report includes specifics on the Individual Shared Responsibility Payment (Individual Mandate).  In 2014, taxpayers filed 6.6 million returns that included a payment for the individual mandate.  The reported number is 10% higher than the administration had initially estimated.  The average amount reported was around $190.  In addition to this data the IRS discovered that 300,000 taxpayers had overpaid this penalty on their returns to the tune of $110 per return.  At this time the IRS has not made a decision as to how, or if, these overpayments would be refunded to the affected taxpayers.  The IRS remains cautious with this data as it is still preliminary and could be subject to change.