In filing our 2014 tax returns, we will all have to answer a new question (line 61 on the 2014 Form 1040) – did you and everyone in your family (spouses and dependents on the return) have health coverage for every month of 2014. If anyone was lacking coverage for any month, they must next determine if they meet an exemption. If they do not, they owe the Individual Shared Responsibility Payment (penalty). One of the exemptions that many people might qualify for is that the health insurance available to them was unaffordable. If the employer offered coverage, you look at the cost of that coverage (cost less what employer contributes to that cost). If the employer did not offer coverage, you look at what the cost of coverage would have been in the Marketplace (Exchange). If you would have been eligible for a Premium Tax Credit (Section 36B), you must reduce that cost of Marketplace coverage Read more
Tag Archive for ACA
Since 1999 I’ve been provided tax revision courses for all the main accountancy qualifications including ACA, ACCA and CPA through my business Tax Grinds here in Dublin city centre.
In 2013 the published pass rates were as follows:
• CPA 43% (Advanced Tax)
• ACCA 41% (P6 – Advanced Tax) dropping to 39% in 2014
• ACA 63% (Overall)
Students fail their professional exams for a variety of reasons but the main one is the wrong study technique. Read more
My friend, confidant, mentor and expert in the procedural ramifications of ObamaCare, Debbie Nash of D. Nash & Associates, got to talking with me about some of the nuances of this legislation and our discussion quickly digressed into what the definition is of a ‘Full Time Equivalent’ (FTE) employee for IRS tax purposes. One of many reasons I appreciate time together with Debbie is our electrifying and challenging conversations. She keeps me on my toes continually pushing me to be a more astute student of the Internal Revenue Code.
After deliberate debate and further review it quickly became apparent to me that part of this precedent setting legislative action is to simply create long term jobs for the legal industry simply because there are so many unanswered questions. One on the menu today is how Read more
The IRS addressed in its Health Care Tax Tip 2014-04 the question of whether a taxpayer owes an “Individual Shared Responsibility Payment” to be paid with the 2014 tax return filed by April 15, 2015.
Do I owe it? And if so, how much do I owe?
The short answer is that for any month in 2014 that a taxpayer or any of a taxpayer’s dependents do not maintain health care coverage and do not qualify for an exemption from having health care coverage, then the taxpayer will owe an “individual shared responsibility payment” with your 2014 tax return filed in 2015.
What is the “less than three-month gap” exemption/exception?
The Affordable Health Care Act (ACA) (“Obama Care”) may lead to stiff excise taxes for larger and midsize employers that misclassify employees as independent contractors (see §4980H Shared responsibility for employers regarding health coverage). The term “applicable large employer” means, with respect to a calendar year, an employer who employed an average of at least 50 full-time employees on business days during the preceding calendar year. The term “full-time employee” means, with respect to any month, an employee who is employed on average at least 30 hours of service per week. However, employers with less than a 100 employees have a transition period until 2016 for the application of §4980H.
Employers that misclassify employees as independent contractors already face potential tax Read more
The IRS has declared filing three years back taxes is adequate for most US expat tax filers who are delinquent and there shall be no penalties for late FBARs (Foreign Bank Account Reports) from those who were unaware of the requirement to file.
This brings a clarity and welcome relief to many American expats who in the past may have been reluctant to file US income taxes because there was no assurance that they would not be further harassed (or assessed exorbitant penalties and fees) because they simply didn’t know – or they didn’t trust the potential outcome if they did attempt to come forward and become compliant with US tax laws…