We’re busy here at Peoples Tax getting ready for the 2015 season. Do you know what to expect this coming tax season?
The Affordable Care is in full swing, and there are a lot of other new changes the have happened recently. Here are just some of the things you need to know about for 2015.
It’s still up in the air whether or not the government will extend the 50+ tax provisions that expired in 2013. These include things like:
- State and local sales tax
- Tuition deduction
- Teacher’s expenses
- Research and energy credits
- Mass transit communters
- Charitable contributions
There has also been no announcement of the e-file start date. Expect late legislation will cause delays in forms etc. at IRS.
Is Your Tax Preparer on the IRS National Database?
The IRS released a new program this year to reduce the amount of unqualified tax preparers and improperly prepared returns. The program is called the Annual Filing Season Program. It is not mandatory for tax preparers but if a preparer goes through the program, they will receive a record of completion and will be placed on the IRS National Database.
This National Database will include all credentialed tax preparers and can be accessed by any taxpayer looking for preparers who have professional credentials. The program is a refresher course and exam to test the knowledge of the tax preparer.
The Affordable Care Act
There will be some changes made to your tax preparation process this coming season due to the Affordable Care Act. If you acquired insurance through the exchanges, there will be a new form you will have to bring from your insurance exchange before you can file your tax return. The form is called 1095-A and it lists everyone in the household who has coverage and what the government paid for each person in subsidies.
In addition to this form, your standard 1040 is going to have a few changes to it. If you are having your taxes prepared professionally, these will be filled out by your tax preparer. However, you should know that the following information will be needed.
- You will need to report the excess of any Premium Tax Credit received throughout the year.
- You will need to report whether you have essential coverage or owe a penalty.
- You will need to report the amount of the Premium Tax Credit you received.
If you qualify for an exemption from the insurance requirements, you will also have to fill our Form 8965 – which is the Health Coverage Exemption Form.
If you have questions about the upcoming season, or would like to discuss ways to reduce your tax bill through year-end tax planning, give us a call!