Possible penalties expected on Tax Day

47 ABC went to the H & R Block on Monday for Tax Day. We asked clients why they waited until the last day to file.

Quanita Graham says, “Procrastination.”

Robert McEwan says, “I was traveling for work. I’ve been gone the last two weeks.”

Emily Spicer, the manager of H & R Block says, “A lot of them owe money so they wait until the last minute, other ones just forget.”

Spicer says she’s seen people panic as they rush in to file their taxes last minute. The 18th is Tax Day, rather than the traditional 15th because Friday was Emancipation Day. That’s a federal holiday. For New England states celebrating Patriots Day, the deadline isn’t until the 19th.

Aside from the standard questions this year, folks still needing to file will see some changes. The biggest, according to Spicer, is the tax penalties associated with the Affordable Care Act. It’s tacked on to those who can afford health insurance and choose not to buy it.

Spicer says, “A lot of people are not expecting it. They get forms in the mail that need to be filed with their tax return and they don’t realize it.”

Spicer says the form is either a 1095 A, B, or C. She continues, “Unless you have an exemption, they’re going to get you.”

The fee is calculated two different ways. You’ll pay whichever is higher. That’s either 2.5 percent of household income, or $695 per adult.

Spicer goes on, “There’s a lot of times we can find an exemption for them to wipe out that penalty.”

The same can be done online. However, it can’t be done without the forms. Regardless, Spicer says that’s no reason to not file at all or at least get an extension. The consequences of doing nothing will be pricey.

The deadline to file or get an extension is midnight.