The biggest issue that taxpayers and tax professionals will have to work with this year is the ACA or the Affordable Care Act and the ability for the government to establish a tax for people who do not have health insurance that meet their set standards.
If you have gotten insurance through a Marketplace, you will get a form 1095-A from that particular Marketplace. We MUST have that form in order to complete your taxes.
If you have private insurance or insurance through your employer, you may get a form 1095-B or 1095-C. These forms are optional for this tax year; however, if you have received one of these forms please bring it along.
If you are covered under a private insurance policy or a policy through your employer and did not receive one of the above mentioned forms, please make sure to bring the insurance cards of all family members with you to your appointment. If you are dropping your taxes off, we will make copies of the cards for our records.
If you are exempted from the minimum essential coverage, please make sure to apply for your exemption number at least a month before your return is to be prepared. You can find the application at https://www.healthcare.gov/, under apply for an exemption and we will have copies of the applications in our office. We will do our best to help answer questions along the way and minimize costs on all sides.
You need to know also that more firms/companies that reimburse workers for health insurance can owe a stiff tax, according to the new IRS guidance. Many small companies have set up plans to reimburse premiums paid by employees for individual policies or for coverage bought on an exchange. Earlier this year, the IRS said that if these arrangements are done on a pretax basis, they violate the health reform law and likely trigger a $100-a-day tax per worker. See us for some solutions on structuring accounting and pay to be compliant!
With updates coming out of the ACA more frequently as the system gets closer to going active, we at Sterling Financials will keep you in the loop!