Tag Archives: Medical

Tax Reform and Your Taxes

Well, the Tax Cuts and Jobs Act (H.R. 1) has passed, mainly starting in 2018. Are you confused by tax reform and your taxes, and how this new law will impact you? You’re not alone. As has become the norm for Congress, it played brinksmanship and waited to almost the end of the year, in the midst of the holidays, to pass this very extensive tax bill, providing little time for anyone to plan for 2018.

So that you have an idea about how these changes might affect individual taxpayers like yourself, we have put together some of the key points of the new law. As a suggestion, pull out your 2016 federal return and follow along to get a better understanding of these changes. Continue reading

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Gambling With Healthcare Premiums?

Everyone likes to gamble, play the lottery or Bingo every once in a while. Even a recreational gambler, will come across that quirk in the tax law. What quirk you wonder? That glitch that can actually cause you to pay more for your health insurance if you have gambling winnings. Yes, even if the overall result from gambling for the year is actually a loss. How on earth can this be, you wonder?  Continue reading

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Employer Relief: Affordable Care Act Reporting

Employer Relief, Affordable Care ActEmployer relief has been issued for ACA reporting. Starting the 2015 tax year, Applicable Large Employers (ALEs) were required to file Forms 1095-C and 1094-C with the IRS. They were also required to provide a copy of the 1095-C to each of their employees. An ALE is generally an employer with 50 or more equivalent full time employees (EFTEs) in the prior year. Even though ALE’s with 99 or fewer EFTEs are not subject to the insurance mandate for 2015, they are subject to the 1094-C and 1095-C filing requirements for 2015.

Employer Relief and Due Date Requirement

This is the first year for this requirement. The IRS has decided to provide first year (2015) filing relief for Forms 1095-B and 1095-C. The due dates for furnishing these forms are extended as follows:

  • The due date for providing the 2015 Form 1095-B and the 2015 Form 1095-C to the insured and employees is extended from February 1, 2016, to March 31, 2016.
  • The due date for health coverage providers and employers to furnish the 2015 Form 1094-B and the 2015 Form 1094-C to the IRS is extended from February 29, 2016, to May 31, 2016 if not filing electronically.
  • The due date for health coverage providers and employers electronically filing the 2015 Form 1094-B and the 2015 Form 1094-C with the IRS is extended from March 31, 2016, to June 30, 2016.

Those Who Cannot Meet the Original Deadline

The IRS is prepared to accept information reporting. For returns beginning in January 2016, employer relief is available for those who cannot meet the original deadlines are encouraged to furnish statements and file the information returns as soon as they are ready. This is true for other coverage providers, as well.

The information provided to individuals on their copy of Form 1095-B or 1095-C is generally used to confirm that the individual had minimum essential coverage. This allows them to avoid the penalty that applies when not covered for the full year. However, with the extension of the filing dates for these forms, individuals may not have the forms in hand before filing their 2015 returns. For 2015 only, individuals who rely on other information received from their coverage providers about their coverage for purposes of filing their returns do not need to amend their returns once they receive Form 1095-B or Form 1095-C or any corrections, according to the IRS.

Likewise, individuals who, when filing their 2015 income tax returns, rely upon other information received from employers about their offers of coverage for purposes of determining eligibility for the premium tax credit need not amend their returns once they receive their Forms 1095-C or any corrected Forms 1095-C.

Are you ready to file, but you don’t have your 1095-B or 1095-C Forms yet?

Alex Franch, BS EA is more than a tax advisor. Alex is a tax expert who can give you the tax advise you need. Worthtax provides ultra-convenient service and guaranteed pricing. We have locations in Quincy, Weymouth and Dedham. He can be reached at 781.849.7200 to answer your tax questions.

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Learn more information about 1095 forms here.

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