Posted on 12/30/2014 2:07:45 AM PST by Libloather
The Affordable Care Act (ACA) and its Possible Effects on You and Your Tax Return
We wanted inform you how the Affordable Care Act (ACA), sometimes also referred to as Obamacare, may impact all of us this tax season. The ACA created the new Premium Tax Credit and the Individual Responsibility Payment that may affect your tax return this season.
More Complex Tax Returns
The entire filing process will be more complicated this year, with every tax return to now include new provisions related to health insurance. This year, many taxpayer returns will contain additional forms related to health care coverage. Tax returns will be more complicated and will take more time and expertise to complete.
Possible Reduced Refunds
The new Individual Responsibility Payment will be assessed by the IRS against taxpayers who do not indicate on their return that they either had health care coverage throughout 2014, and do not qualify for an exemption from the health care coverage requirement. This new payment amount is collected by the IRS as part of the new ACA law starting with 2014 returns. As a result, if the IRS subjects you to this payment amount, your refund may be less than you expected, or less than you received in past years.
Additionally, the IRS may adjust your refund (either up or down) if you currently receive health insurance through the Marketplace (sometimes also referred to as Obamacare) but the IRS determines that the information on file at the Marketplace is incorrect.
Who is Affected?
All taxpayers across the country are subject to the requirements of new ACA law. The federal government urges all consumers receiving coverage through the their federal or state Marketplace to report "life changes" that can affect their coverage as soon as the changes take place (such as changes in marital status, income, number of dependents, where you live, or disability status). The government urges you to report these changes so that insurance adjustments can be made immediately and tax refunds not affected as much.
Watch for New Tax Documents.
You are accustomed to receiving various forms that are necessary to prepare your return. Some of these are Form (s) W2, Form(s) 1099-INT, Form(s) 1099-B, Form(s) 1098, and Form(s) SSA-1099. Many of these are due to be received by January 31st, but can be as late as February 15th.
For 2014 filing, you should also receive a Form 1099-A (or possibly a Form 1099-B or 1099-C) that provides information about your insurance coverage. These important tax documents will be sent to you by your health insurance provider. Include these forms in your tax information that you submit to your tax professional for your tax preparation. They are necessary to accurately prepare your 2014 tax return.
Information about Members of Your Household.
To complete the ACA filing requirements on your 2014 tax return, information about all members of your household and their income, whether or not you claim them as a dependent, will be required. The requirement for this information goes far beyond any thing we have seen in the past. Your tax professional may need to see (or prepare) the tax returns for all members of your household who have 2014 income. So, make sure your children (including college students) with earnings, parents, and other members of the household who have income can provide the information to accurately prepare your (and their) tax return.
I’m just gonna lie wherever I have to. Anybody here honestly think this government who can’t even run a website and do the financials will track all of this? Not yet.
Will VA notify the IRS of health care coverage provided to each Veteran and eligible beneficiary?
Yes. Beginning in 2015, VA will send Veterans and eligible beneficiaries a letter and IRS form 1095B which will provide the details of the health care coverage provided by VA for the previous year. As required by law, VA also will notify the IRS.
If I’m enrolled in a VA health care program, do I meet the requirement for health care coverage?
Yes. If you are enrolled in any of VA’s programs below, you have coverage under the standards of the health care law:
•Veteran’s health care program
•Civilian Health and Medical program (CHAMPVA)
•Spina bifida health care program
What are the benefits of enrollment in VA health care?
Enrollment in VA health care means you have:
•Medical care rated among the best in the U.S.
•Immediate benefits of health care coverage. Veterans may apply for VA health care enrollment at any time.
•No enrollment fee, monthly premiums, or deductibles. Most Veterans have no out-of-pocket costs. Some Veterans may have to pay small copayments for health care or prescription drugs.
•More than 1,700 places available to get your care. This means your coverage can go with you if you travel or move.
•Met the new requirement to have health care coverage that meets the minimum standard.
How do I enroll for VA health care coverage?
You may apply in one of three convenient ways: visit www.va.gov/healthbenefits/enroll, call 1-877-222-VETS (8387) or visit your local VA health care facility.
http://www.va.gov/health/aca/FAQ.asp
And what happens if no one files a return? Are we all going to jail? Where they will feed us, clothe us and house us?
BTW, that part about collecting data on family members is BS. More information that is only going to be used against the people.
RESIST!
Let the real anger begin on or about April 15 when the rank and file idiot “Obama is hip” voter gets smacked in the face with this heinous intrusion on their lives. This is the absolute worst piece of legislation ever foisted on the American people and the careers of all the Democrats that supported it should burn in hell.
Leave it to the feds to take an already overly complicated tax system and make it worse. This is going to be a mess.
If you have other adults in your home (spouse, elderly parent, adult children, etc.), I'd suggest having them pay you a nominal rent payment every month. If you're ever asked, you can always tell the IRS that they're you're tenants, not household members.
Just convert to Satanislam. We’ll pay you!
I am presuming that you are letting off (perfectly understandable) steam, but lest someone take your statements seriously, allow me to be some cold water here. My bona fides here are that I am a 10+ year seasonal tax preparer and SINCERELY am doing this work for the clients & coworkers and not for the money. As an Enrolled Agent, I spend mucho hours prepping for the tax season and always breath a big sigh of relief on April 20th or so.
First and most important thing about the IRS - You are legally assumed to be guilty until you PROVE your innocence! The IRS will run you through the wringer if they notice you so the object is not to be noticed!
Second: As creaking and as bad as the IRS technology is, their ability to match paperwork is constantly improving. Failure to account for any and all of the tax forms received will start the IRS on noticing you! The more money that is involved in the missing info increases the interest.
Third: Remember that the IRS has the right to query tax returns up to 3 years back (open years) AND LONGER if fraud (willful tax cheating) is possible (in their eyes!) The IRS runs on the FUD (fear, uncertainty and doubt) concept and WILL MAKE YOUR LIFE MISERABLE if you get crosswise with them. Penalties are not just financial, look up Wesley Snipes and see what his prison sentence was.
I HATE OUR MONSTER TAX SYSTEM, it is a disgrace and an all too powerful tool in the hands of our enemy, the bigger government crowd. Every government bureaucrat should be REQUIRED to do their own return without any assistance, computer or advice. The common argument that “Ignorance is no excuse” FAILS in the light of the legal liabilities foisted upon the common citizen facing an ever increasing tax code and regulations!
Income tax is unconstitutional. Theft of income should be dealt with by deadly force.
so folks looking for advantage should declare they are muslim (set up a prayer room)
and file our taxes in spanish, right?
imagine if 100 million did so
this heinous intrusion on their lives.
They don’t care.
They already give their info willingly to Facebook and anyone else who asks for it. They have conditioned themselves to just regurgitate it automaticly.
If you aren’t insured, don’t worry. People who are Federally Uninsured will simply file Form 1040-FU and it will calculate how much money you must send to the government that you never had to pay before.
My point was that the IRS would have a difficult time verifying the existence and status of "household members" in cases where everyone is meeting the letter of the law entirely.
Since you're an Enrolled Agent, I'll post this question to you:
Suppose I'm the owner of a home where four people live (myself and three others), and that all four of us file our tax returns separately. For the sake of this discussion, I'll call these two unmarried working adults (I'm one of these), one retired parent, and one adult child. Under the U.S. tax code, would I be legally permitted to sign lease agreements with the three other adults in the house and have the four of us list ourselves as unattached members of different "households?" I would document their nominal rent payments and report them as income on my tax return, of course.
Great idea, then you will be subject to zoning laws about renting out your space, inspections from housing authorities to make sure you are in compliance with all codes and other regulations. Rent control records will have to be kept. You will have to apportion your mortgage deduction to reflect the % of your dwelling that is rented and you will have to calculate depreciation on the dwelling that will need to be recaptured when you sell. We are screwed especially if we are not in lock step with those who run things.
Zoning laws may or may not apply, depending on where you live. I would venture to guess that most zoning laws do not cover family members anyway, and this is likely one of those cases where there is a complete disconnect between legal definitions at the Federal and municipal level (i.e., a person may be considered a family member for zoning purposes even if they're not a family member for Federal tax purposes).
Rent control records (if applicable) would not be a problem because this would be the lowest rent anyone ever paid for living space.
As far as the other financial/tax aspects of your post, I say: "Bring it on."
1. I'll calculate the depreciation based on floor area -- to the one-hundredth of a square foot. Sure, I'll recapture and report that as a capital gain when I sell the home ... but I'll be deducting the depreciation on my tax returns in the meantime.
2. While I'm at it, I'll deduct all of the costs of keeping that living space in good working order -- including furniture and a pro-rated share of the utility costs that matches the pro-rated share of the living space that I calculated above for depreciation purposes.
3. And while I'm at it, I'll deduct the cost of groceries for these folks, too -- because that's supposed to be covered by the rent, too.
By the time all is said and done I could be showing quite a sizeable loss on my income tax return, largely by deducting legitimate expenses that would otherwise not be deductible except for the fact that my "family members" are now tenants. You can be sure I'd keep meticulous records of all these things.
My family won't be going on vacation next year. Instead, we'll be holding our lease renewal negotiations over the course of a 10-day trip to Hawaii.
That would make my portion of the cost of the trip (hotel, air fare, etc.) tax deductible, wouldn't it?
So if slavery is defined economically as an effective tax rate of 100%, isn’t any lesser percentage merely a matter of degree?
You are correct. The will to enforce is there but the ability is missing
There is an implied assumption that the IRS knows what it is doing. By the time it actually learns, Obamacare will be gone
I’m not sure what you’re getting at. A nation — or any of its subsidiary levels of government — couldn’t exist without taxation.
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