EHR Incentive Payments Are Taxable Income

Incentives paid under the Medicare electronic health record (EHR) incentive program are taxable, the Internal Revenue Service ruled in February.

Physicians should have received an IRS Form 1099 from the Centers for Medicare & Medicaid Services for the incentive payments. The forms had to be postmarked by Jan. 31 and were mailed to  addresses on file with Novitas Solutions, the Texas Medicare claims processor.  

If you did not receive your Form 1099, you may request a duplicate copy by calling (888) 734-6433, which will take you through a series of prompts (1-1-1-1-2). You will be asked for your National Provider Identifier.  

Physicians in the Medicaid EHR incentive program should have received a Form 1099 from the Texas Medicaid & Healthcare Partnership. You can get a duplicate copy by calling (800) 925-9126. 

The Internal Revenue Service issued guidance on the EHR incentive payments that may help in tax preparation, especially if payments were assigned to your group or hospital.  

TMA recognizes the complexities of compliance with the federal EHR incentive program and encourages physicians to contact their local regional extension center (REC), which the government established to help with program compliance. The RECs can help all physicians, but they may be able to discount services for primary care physicians. Details about the REC program are available on TMA's Regional Extension Center Resource Center.

For more information, call the TMA Health Information Technology Department at (800) 880-5720 or email HIT.


Action, March 18, 2013


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