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Affordable Care Act Resources You Should Know About

By Chuck McCabe | January 29, 2015
Posted in: Uncategorized
WE HAVE THE RIGHT PEOPLE
BRING US YOUR AFFORDABLE CARE ACT QUESTIONS

Everyone has questions about the Affordable Care Act (ACA) and how it’s going to affect their tax return this year. If you’ve got questions, know that it’s not just you! IRS Commissioner John Koskinen declared this tax season “one of the most complicated ever”, partly because of the Affordable Care Act. That’s why we’ve been prepping, holding information sessions, and posting on our social media channels as much information as we can.

Here are some resources to check out that might help answer any questions you have.

Publication 5187 (Health Care Law: What’s New for Individuals & Families) is a great place to start. It covers the provisions of the health care law that you will see for the first time on your tax return this year.

For a walk-through of all of the ACA Tax Provisions and other important information, review the Affordable Care Act (ACA) Tax Provisions section of irs.gov.

You should also know the penalties for not having insurance this year. Many people might think the penalty is only $95, however the fee is calculated two ways and you will be responsible for paying the greater of the two:

  • 1% of your yearly household income. (Only the amount of income above the tax filing threshold, $10,150 for an individual under 65, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.
  • $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

If you received a Premium Tax Credit this year to cover the costs of insurance or are expecting one on your return, you should check out the Premium Tax Credits section of IRS.gov. Please note that if you received a credit earlier in the year, you may owe money when you reconcile your income versus the credit.

 

Forms

There are some new forms you’ll need to know about as well as changes to existing forms.

If you purchased insurance through the exchanges, you will need to bring form 1095-A to your tax preparer. This form lists everyone in the household who has coverage and what the government paid in subsidies for each person.

Form 8962 is the Premium Tax Credit Form for claiming or reconciling subsidies and will also need to be filled out and brought to your tax preparer.

Form 8965, Health Coverage Exemptions is to report a coverage exemption granted by the Marketplace, or to claim a coverage exemption on your tax return.

 

We’re here for you!

As your tax professionals, we’ve been studying up on the ACA and are prepared to answer any questions you may have. Give us a call or make an appointment online today!

 

More resources to check out:

Affordable Care Act Tax Provisions for Individuals and Families

Affordable Care Act Tax Provisions for Employers

Health Care Tax Tips

ACA Questions and Answers

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