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Professional Tax Software News & Advice

Health Coverage Exemptions: What Are They, How to Obtain Them, and How to Claim Them

The Internal Revenue Service reminds taxpayers that they will see some new things on their 2014 tax return involving the new health care law, also known as the Affordable Care Act or ACA. Under the ACA individual shared responsibility provision, taxpayers are required to have qualifying health care coverage if they can afford it in each month or make a payment, called an individual shared responsibility payment, when they file their tax returns. Some taxpayers qualify for an exemption from this requirement for a variety of reasons. [More]

IRS Offers Guidance on Tax on ‘Cadillac’ Health Plans

The Internal Revenue Service has issued guidance on the potential approaches it may take in the future on proposed regulations for the excise tax on high-cost employer-sponsored health coverage in the Affordable Care Act. The excise tax on so-called “Cadillac” health plans is scheduled to take effect in 2018 and would impose a 40 percent tax on employers who pay for overly generous and expensive health coverage in an effort to encourage them to offer more cost-effective health plans in which employees and executives share more of the costs. [More]

IRS Will Not Penalize Those Who Received Wrong Tax Info from Health Insurance Marketplaces

The Internal Revenue Service will not try to collect additional taxes from those taxpayers who have already filed their taxes after receiving incorrect information from the federal health insurance marketplace, Healthcare.gov. Last week, the Centers for Medicare and Medicaid Services announced that approximately 800,000 taxpayers who received coverage via Healthcare.gov and qualified for premium tax credits had received the wrong information on a Form 1095-A, “Health Insurance Marketplace Statement,” sent to them in the mail. They were asked to wait to file their taxes until March when a corrected form will be sent to them. [More]

3 Tips About Marketplace Coverage & Your Clients’ Taxes

Your clients’ health coverage through the Health Insurance Marketplace may affect their taxes:
• If anyone in your household enrolled in a health plan through the Marketplace in 2014, you’ll need some new information when you file your federal income taxes.
• If you didn’t have health coverage for 3 or more months in 2014, you can apply for an exemption or you might have to pay a fee. [More]