Taxes and Healthcare - How Personal Tax Returns Relate to Health Care


    In this continuing series, we have examined how the landscape of taxes and accounting has changed from one year to the next.  Small businesses have the ability to claim a greater tax credit and expense related to employee insurance premiums. The qualifications are clear, and the rewards are tangible.  However, as of 2014, everyone needs to have their own health insurance.  For those who must provide their own coverage, their most recent tax return is absolutely necessary.

    One must file a tax return in order to qualify for mandatory health care coverage.  Some people received an extension for their 2014 Tax Return and can legally file by October 15.  In these cases, the 2013 Tax Return was used as the basis to determine health care payments and possible credits.  Those in this situation must file their 2014 Tax Return ASAP.  This is true if income remains the same, or has changed.  Marketplaces will determine eligibility for cost reductions and assistance in paying premiums for 2016, before this year is over.  Filing now will lower the chance of having some sort of interruption in receiving help with insurance payments.

    If there is no 2014 Return filed in time, all assistance with health care payments will stop and the full cost for premiums and covered services will be paid by the individual.  In addition, the IRS may determine that one now must pay back the health care credit and payment assistance they had received before.  This is also true if the income being reported is much higher from year 2013 to 2014.  It would seem to be wise to file your 2014 Tax Return as soon as possible, so that such an important matter as health care coverage can be taken care of.  What do you think?

Comments

Post a Comment

Popular posts from this blog

What is Fair in the Tax System?

                 Everyone wants to be treated fairly. That is an essential quality that all people have. But what is fairness? Trying to answer that question can prove to be difficult for some. While fairness is impartial and just treatment without favoritism or discrimination, applying this principle is a challenge. Each person has their own idea of what is fair. That is certainly true when it comes to the current tax system.           The Internal Revenue Service ( IRS ) is aware of that sentiment. After a year of review following the passing of the 2022 Inflation Reduction Act funding, they are determined to make a change. These changes will focus attention on the wealthy, partnerships, and other high-income earners who in recent years have had a sharp reduction in audits. The IRS is planning to use Artificial Intelligence to detect patterns in tax avoidance and new threats. They will also make sure that audit rates do not increase for modest earners. This is just one area that i
Read more

What is the Educator Expense Deduction for 2023?

            With the start of the new school year upon us, educators will want their students to have a complete classroom available to them. That might mean having some out-of-pocket expenses that are not reimbursed. If that’s the case, any principal, counselor, aide, or teacher who works at a K-12 school for at least 900 hours in a year can claim the Educator Expense Deduction . The current limit is $300, but that can be adjusted in the future based on inflation.           The qualifying costs can be related to books, supplies, and other materials used in the classroom. Equipment, including computer equipment and software can qualify. COVID-19 protective items used in the classroom would also apply. This can be claimed even if you use the standard deduction on your tax return. As a reminder, it is always best practice, especially when claiming a deduction, to keep good records which would include receipts. Your qualified tax professional can advise you further.
Read more

Beware of Employee Retention Credit Scams

          The Employee Retention Credit ( ERC ) is a tax credit for employers who kept paying employees while closed by government order or had a great decrease in income due to COVID-19. This is a credit that can only be claimed by certain businesses and organizations that had employees during specific time periods. With this set of criteria, the ERC is continuing to be the subject of a growing advertising campaign. Wild claims are being made about who can qualify for it.           The eligibility requirements should be considered closely. One sign of a scam is stating that the application process is easy, or that someone can find out if they are eligible for it in minutes. The ERC is noted for being a very complex credit. Scammers are trying to use this situation to steal personal information or run away with large upfront fees for work that will never take place. Dishonest promoters try to lure in victims by offering to work for a fee based on a percentage of the credit or sayin
Read more