Did you pay Net Investment Income Tax or Medicare Tax in 2016?
The U.S. Supreme Court recently agreed to hear the Affordable Care Act (Act) appeal that could cause doubt of the legality of the entire Act. One of the provisions is the 3.8% net investment income tax and another is the additional Medicare tax.
If the Act is overturned, any net investment income tax and additional Medicare tax paid can be refunded. The Supreme Court is expected to hear arguments in the fall and make a decision in 2021. However, the statute of limitations expires on July 15, 2020 for any 2016 tax return filed by the original due date of April 14, 2017.
If you review your 2016 tax return and paid these taxes (Forms 8959 and 8960 will be in your 2016 tax return) and wish to file a protective claim, you may use the Protective Claim for Refund form that we have posted on our web site. The Protective Claim for Refund has to be filed with the IRS using the address for filing amended returns. The address list is also posted on our web site and you can reach the documents [here].
Questions? Please contact us at 401-831-0200.