by Renee Lawson | Jan 8, 2015 | Tax Preparation
The Affordable Care Act (ACA) and its Possible Effects on You and Your Tax Return
We know you have a choice when choosing a tax professional, and we want to thank you for your business! We wanted inform you how the Affordable Care Act (ACA), sometimes also referred to as Obamacare, may impact all of us this tax season.
The ACA created the new Premium Tax Credit and the Individual Responsibility Payment that may affect your tax return this season.
More Complex Tax Returns
The entire filing process will be more complicated this year, with every tax return to now include new provisions related to health insurance. This year, many taxpayer returns will contain additional forms related to health care coverage. Tax returns will be more complicated and will take more time and expertise to complete.
Possible Reduced Refunds
The new Individual Responsibility Payment will be assessed by the IRS against taxpayers who do not indicate on their return that they either had health care coverage throughout 2014, and do not qualify for an exemption from the health care coverage requirement Learn More. This new payment amount is collected by the IRS as part of the new ACA law starting with 2014 returns. As a result, if the IRS subjects you to this payment amount, your refund may be less than you expected, or less than you received in past years.
Additionally, the IRS may adjust your refund (either up or down) if you currently receive health insurance through the Marketplace (sometimes also referred to as Obamacare) but the IRS determines that the information on file at the Marketplace is incorrect.
Who is Affected?
All taxpayers across the country are subject to the requirements of new ACA law. The federal government urges all consumers receiving coverage through the their federal or state Marketplace to report “life changes” that can affect their coverage as soon as the changes take place (such as changes in marital status, income, number of dependents, where you live, or disability status). The government urges you to report these changes so that insurance adjustments can be made immediately and tax refunds not affected as much.
Your Tax Professional’s Assistance
Now, more than ever, it benefits you to have the assistance of a tax professional familiar with the changes, laws, and tax forms associated with ACA. Your Tax Professional is here at Liberty Accounting Plus to assist you with the proper tax forms and with questions and problems that may arise.
You can find additional information on ACA online at IRS.gov.
If you didn’t get health coverage last year open enrollment is available until February 15, 2015. Check out www.healthcare.gov to enroll today. You can avoid penalties next filing season.
Please give us a call if you have any questions regarding the Affordable Care Act at 937-268-9004.
Your Tax and Accounting Coach,
Paulette Marshall
by Renee Lawson | Jan 8, 2015 | Tax Preparation
This year there will be some changes to the number of direct deposits one account can accept from the IRS.
Source IRS – Direct Deposit Limits
“In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.”
This is an effort from the Internal Revenue Service to combat fraud from criminals from receiving mulitple refunds into one bank account or pre-paid debt card.
The second feature is to combat taxpreparers from spliting the taxpayers refund for fees using Form 8888.
“The new limitation also will protect taxpayers from preparers who obtain payment for their tax preparation services by depositing part or all of their clients’ refunds into the preparers’ own bank accounts. The new
direct deposit limits will help eliminate this type of abuse.”
Tax preparer fees cannot be deducted from a taxpayer in this manner.
Nor can the tax preparer open a joint account with the taxpayer to receive payment for tax preparation.
Any tax preparer who is trying to collect tax preparation fees using Form 8888 is subject to penalty.
You should avoid a taxpreparer who is trying to split your refund using Form8888.
We look forward to helping you file your taxes.
Your Tax and Financial Coach,
Paulette Marshall
by Renee Lawson | Jan 4, 2015 | Tax Preparation
The 2015 tax season date will be January 20, 2015.
“WASHINGTON — Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.”
Source IRS – Tax Season Opens As Planned Following Extenders Legislation
The fastest way to receive your refund is through e-file.
The IRS also reminds taxpayers that electronic filing is the most accurate way to file your return. There is no
advantage in filing a paper return early. All returns will start being processed on the 2015 tax season date of
January 20. 2015.
With the 2015 tax season date announced we look forward to preparing your taxes in this new filing season.
Your Tax and Accounting Coach,
Paulette Marshall
by Renee Lawson | Oct 23, 2013 | Tax Preparation
2014 Tax Season
With the governement shut the IRS was 90% closed for the entire 16 days.
Source IRS – 2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume
The orginal start date for tax season for 2014 tax season was January 21st.
With the goverment shut down the delay could be a week or two.
The latest possible start date is February 4, for the 2014 tax season.
However, the last day of filing for 2014 tax season is April 15th.
“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers. We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”
We wanted our clients to know about the possibility 2014 tax filing season delay.
We will update you again in December when the IRS plans to announce the actual start date.
As always refunds are issued you faster when you e-file with direct deposit.
You should still be preparing your documents and keeping receipts with 2014 tax season.
