Whatever the result of the Presidential Election 2016, it is apparent that we all love the United States. For the record, many of my closest friends represent all parties in this year’s election and I respect all the views. The question is what direction will this country take on taxes with either candidate?
Tag Archive for Affordable Care Act
A ruling by the Internal Revenue Service (IRS) creates a significant obstacle to a new type of health care network that the Obama administration has promoted as a way to provide better care at lower cost, at least according industry lawyers and providers. Health care markets are rapidly changing as independent doctors and hospitals race to form networks, otherwise known as accountable care organizations, in which they coordinate care for patients. The doctors and hospitals have financial incentives to keep patients healthy and to control costs, and they can share in the savings if they meet performance goals. The new entities, which now cover more than 28 million people, according to Leavitt Partners, help manage care for Medicare beneficiaries, people with employer-sponsored insurance, and consumers who buy coverage through online marketplaces under the Affordable Care Act.
I think it is correct to say that all taxpayers are affected by the Affordable Care Act in some way. Certainly individuals living in the US. All must answer a question on the 1040 as to whether everyone in the “shared responsibility family” (basically those listed on the return), had health coverage for all months of the year. If there are any uncovered months, the next step is to see if an exemption applies for that month. If no exemption for any month, a penalty is computed and reported on the 1040. Read more
The Affordable Care Act requires you, your spouse and your dependents to have qualifying health care coverage for each month of the year, qualify for a health coverage exemption, or make an Individual Shared Responsibility Payment when filing your federal income tax return. If you had coverage for all of 2015, you will simply check a box on your tax return to report that coverage.
However, if you don’t have qualifying health care coverage and you meet certain criteria, you might be eligible for an exemption from coverage. Most exemptions are can be claimed when you file your tax return, but some must be claimed through the Marketplace. Read more
To be eligible for the Premium Tax Credit under the Affordable Care Act, all of the following must apply:
• Your income must be between 100% and 400% of Federal Poverty Line (see below) for a given family size.
• You cannot be claimed as a dependent.
• If married, you must file a joint return (although some exceptions may apply).
• You must be enrolled in a qualified health plan through Marketplace.
• Cannot be eligible for other minimum essential coverage.
• Premiums must be paid.
Under the Affordable Care Act, the IRS will be implementing a number of new forms. One such form is the 1095-C form, which will be completed by employers, and which will become mandatory for tax year 2015.
Employers with 50 or more full-time employees are required to file Form 1095-C, both with the employee and with the IRS.
This form includes information about whether the employer offered qualifying health coverage to the employee, spouse and dependents, for some or all months during the year.
Form 1095-C provides the following information:
• Employee’s name, SSN, address. Read more
The Premium Tax Credit, under the Affordable Care Act, is a refundable tax credit that helps eligible people with moderate incomes afford health insurance purchased through the Health Insurance Marketplace.
If you are eligible for the credit, you can choose to:
• Get it now: Have some or all of the estimated credit paid in advance on your behalf directly to your insurance company, to lower what you pay out-of-pocket for your monthly premiums during 2015. These payments are called advance payments of the premium tax credit.
• Get it later: Wait to get the credit when you file your 2015 tax return in 2016. This means, then, that no Read more
Under the Affordable Care Act, the law requires you and each member of your family to have qualifying health insurance, called minimum essential coverage, otherwise you will be subject to a penalty when you file your federal income tax return.
It is important to note that you may be exempt from the requirement to maintain minimum essential coverage, if certain conditions are met, and thus will NOT have to make a shared responsibility payment (penalty) when you file your federal income tax return.
You can obtain some exemptions only from the marketplace, others only from the IRS, and yet others from either the Marketplace or the IRS.
You can obtain Affordable Care Act exemptions under the ACA if any of the following apply to you for 2015 tax year: Read more
Republican presidential candidates Senators Ted Cruz and Mike Huckabee would like to abolish the IRS. They are not saying they want to abolish taxes, just the agency that collects them. Even if either is able to simplify taxes to the point that no taxpayers have questions or need guidance, we still need a tax collector, as well as an auditor to ensure compliance.
A call to abolish the IRS is a distraction. That’s too bad because there are significant improvements needed to our federal tax system – a system that includes not only the income tax, but also employment, excise and estate and gift taxes. Tax reform must be the focal point, not termination of the entity that collects revenues to fund schools and roads, provide national defense, and much more.
The IRS is an easy scapegoat for complaints about our tax laws. But those laws come from Congress. Yes, the Read more
A tweet from an Indiana resident by the name of Benjamin Miller, including a picture of the IRS notice he received advising him that he owes $2,344 as a penalty for not having health insurance, has gone viral and ignited a firestorm.
Mr. Miller stated in his post that he didn’t buy health insurance because his premiums jumped by over $1,000 to $1,400 per month. Of course the increase in Mr. Miller’s insurance premiums were most likely due to the mandatory provisions included in the health plan that were needed to meet the minimum essential coverage requirements of the Affordable Care Act (ACA).
Presidential candidate Clinton has called for repeal one of the numerous parts of the Affordable Care Act (aka Obamacare). Reuters reports that on September 29, 2015, she called for repeal of the “Cadillac tax” provision that goes into effect starting in 2018 (“Clinton calls for repeal of ‘Cadillac tax’ on healthcare plans,” by John Whitesides, Reuters, 9/29/15).
A few observations on this:
• What happens when one piece of the complete healthcare reform plan is removed? The Cadillac tax raises revenue by imposing an excise tax on certain expensive plans offered to employees (see IRC Section 4980I). Likely it also is an incentive not to offer these Read more
It’s a good time to get planning for this year’s tax challenges. For tax year 2015, there are annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts. Keep in mind that the AFA (Affordable Care Act) will increase many taxes on capital gains, income, and other areas including reducing tax deductions for high income earners and families.
• Income Tax Rates: The tax rate of 39.6 percent affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively. The other marginal rates – 10, 15, 25, 28, 33 and 35 percent – and the related income tax thresholds are described in the revenue procedure.