Health Reform Law May Make Tax Filing More Complicated
The
A major change this year: for the first time, filers will be asked about their health insurance status. This change, which is part of the Affordable Care Act, will have the biggest effect on filers who either purchased insurance through the
"These are all new rules for everyone," Harris said.
Since the requirements are new, Harris said, even the
"It's really very murky at this point," she said.
"It's new, and nobody really understands it," said Newman, who works in both
Newman said,
The changes, in a nutshell:
Filers who were covered by employer-provided insurance all year get off easy: they need only check a box on their return to indicate their status.
Filers who obtained coverage through the
Marketplace consumers who qualified for income-based premium reductions will be required to reconcile their actual 2014 income with the estimated income level they provided when they signed up for insurance. "If your income was more than you estimated, then you will have to pay that money back on your tax return," Harris said.
Filers who could afford insurance coverage but did not purchase it should expect to pay a penalty, unless they meet one of the specific criteria to qualify for an exemption.
This year, the penalty is
"I think that is definitely going to be a shock to people who did not have coverage," Harris said.
Newman said she's already filed a return for a client who owed a penalty of
"They knew they were going to have to pay something, but they weren't expecting that (
But here's a bit of a bright spot.
The new rules only affect federal returns, not
"The Affordable Care Act is federal," said
"It doesn't have an effect on the state filing at all."
Need help understanding the Affordable Care Act's tax provisions? Here are some places to start:
--
--
--A fact sheet from the
___
(c)2015 the Evansville Courier & Press (Evansville, Ind.)
Visit the Evansville Courier & Press (Evansville, Ind.) at www.courierpress.com
Distributed by Tribune Content Agency, LLC
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News