Just Some Practical Details Concerning The Affordable Care Act

Published: 05th December 2016
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In the event that you are among the many people that purchased health care using a health insurance exchange, then filing your return could possibly entail a bit more on your part this year. Taxpayers are expected to document their health care status on income tax returns. This is simply the year which might possibly require that you get help from a tax professional if you want to ensure you understand all of the changes. Let's take a moment to look at a few popular concerns as well as the advantages of having a professional help you.

Who Is Excluded?

Those who are unable to find policies which costs 8 percent or less of their household's gross income are not actually mandated to be insured. Additionally those who have had a gap in coverage which lasted no more than three months, those who have religious objections and Native American tribe members. Talking to a professional can help you figure out if you are in a category that makes you qualified for exemption.

Just How Should I Secure Exemption?

The majority of exemptions require a paper application along with supporting reports. Such exemptions can take up to two weeks to process. On the other hand, there are certain exemptions, that can only be taken on your income tax return. Sometimes, you can maybe even obtain retroactive exemptions. If your request is not granted, then you are actually permitted to appeal. Professionals have a comprehensive knowledge of what exemption tools are available to you as well as the procedure of filing an appeal.

Are There New Income Tax Forms?

People who purchased insurance through state or federal insurance marketplaces are going to be given a 1095A form in the mail by January 31. This particular form, referred to as the Health Insurance Marketplace Statement, lists which members of the household are actually covered as well as for which time period. An income tax specialist can serve to help you to figure out what your premium costs will be. They can furthermore educate you of what income tax credits you will be given.

Can I Be Penalized For Not Actually Having Coverage?

If you are not actually exempt then you are expected to pay back penalties. It is computed on a month-by-month basis, which means you are obligated to pay one-twelfth of the annual payment for every single month you or household members did not have coverage or exemption. You are allowed to go three months consecutively without any coverage before penalties begin to kick in. An income tax professional can help you with the penalty computations given that they might be rather tedious.

What Can Develop Assuming That I Refuse To Pay My Penalty?

The I.R.S. will not use collection methods, such as wage garnishments, placing liens in order to collect fines nor will they prosecute you criminally. Nevertheless, the agency will withhold penalties from refunds owed. And if you are not owed refunds, the penalty rolls over and will accrue interest for 10 years.

In the 2015 income tax year, the I.R.S. will start to implement more robust checks and balances, which notifies the agency about people that had health coverage and those that did not because employers in addition to insurance providers are going to be mandated to send data to this agency. If you are interested in discovering more about the effects of noncompliance, then it is recommended to talk with a qualified income tax professional.

Be prepared so your return is processed in a timely manner.

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