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Better keep an eye on your mailbox, form 1095-A

Mailer

Veteran Expediter
Owner/Operator
If you got Obamacare, pls read on. Fkatz, anything else we need to know? Thanks.

http://finance.yahoo.com/news/got-help-paying-health-care-164924669.

Gov't sending out new tax forms for consumers who got health law subsidies last year
Associated Press By Ricardo Alonso-Zaldivar, Associated Press 1 hour ago


WASHINGTON (AP) -- If you're among the millions of consumers who got financial help for health insurance last year under President Barack Obama's law, better keep an eye on your mailbox.

The administration said Monday it has started sending out tax reporting forms that you'll need to fill out your 2014 return. Like W-2s for health care, they're for people who got health insurance tax credits provided under the law.

Because this is the first time Americans will experience the complex connections between the health care law and taxes, there's concern that some people may not realize the new forms are important, and that they do need to open that envelope. Some consumers may not know what to do with the paperwork.

Called 1095-A, the forms come filled out with information from HealthCare.gov or your state's insurance exchange. They list who in each household got subsidized coverage, and how much the government paid each month to help with premiums.

You don't actually file the form with your tax return, but you can't complete your return without the information it contains.

Taxpayers, or their tax preparers, will use the financial details to fill out yet another form — 8962. That one is used to determine whether people received the right amount of assistance that they were legally entitled to.

The amount of the tax credit is based on a formula that takes into account income, household size, and health insurance costs in your community.

Those who got too much of a subsidy will get their tax refunds reduced by the IRS. For example, you can get dinged if your income went up during the year, and you didn't realize you had to report that to HealthCare.gov or your state insurance exchange.

If you received less of a subsidy than you were entitled to, the IRS will owe you instead.

The Health and Human Services department said it has started sending out forms to consumers in states where the federal government is running the insurance markets. The first batches should start arriving by midweek. The forms can also be downloaded from your HealthCare.gov account.

States running their own insurance exchanges — including California and New York — will send out the forms separately. But they still must meet a Feb. 2 postmark deadline.

Insurers say the feds have told them that they expect to mail about 4.5 million forms and they're tackling the massive job state by state.

Tax preparation companies are seeing a whole new line of business in the health care law. But insurers are worried that perplexed consumers will pepper them with tax questions they're not qualified to answer. The health care law will mean lots more work for the IRS, and Commissioner John Koskinen is warning Congress that budget cuts could hamper taxpayer services this filing season.

The Obama administration has been trying to offer reassurance.

"In the coming weeks, HHS will work with other agencies, tax preparers and community organizations to arm ... consumers with the information they need to know as they prepare to file their taxes," Secretary Sylvia M. Burwell said in a statement.

The health care law provides subsidized private health insurance for people who don't have access to coverage on the job. Funneling the subsidies through the tax system allowed the White House to claim that the law was "the largest tax cut for health care in American history." But the downside is it adds more complexity to a tax system that's already impenetrable for many people.

Here are some pointers for consumers:

— You may get more than one 1095-A. That could happen for any number of reasons, from having a baby to switching plans during the year. You'll need to keep all of them for filing your taxes.



— Contact HealthCare.gov or your state insurance exchange if you believe there is a mistake on your 1095-A. Minor issues such as misspellings should not cause big problems, but it may take some effort to resolve financial inaccuracies.

— If you got employer coverage part way through last year and were only in the insurance exchange for a few months, you will still need your 1095-A to account for the subsidies that you got.

— If you're used to filing Form 1040EZ, you can't do that any longer if you got subsidized health care. You'll have to file one of the longer forms instead.

___

Associated Press Writer Alan Fram contributed to this report.

___
 

Fkatz

Veteran Expediter
Charter Member
Afternoon All,

This post by Mailer is what Obamacare is about, and all taxpayers are subject it.

#1 If you do not have Health Insurance Coverage of any sort, you will have the Shared Responsibility of paying a Penalty with a minimun of $95.00 per person, or 1% of your ADJUSTED GROSS INCOME, that shows on line 38, Federal Form 1040.

#2 If you also do notapply for health insurance by tomorrow January 15, coveage will be effective February 1, 2015, or you have until February 15, 2015 with an effective Date March 1, 2015

#3 If you don't apply you are going to have to go through any Insurance company but the premiuns will be more expensive

If you need health isurance you can go on our website, www.frankstaxbusiness.com, click on health insurance tab, scroll down to the middle of the page ad click on the link for under 65 or over 65 and it will take you to the insurance website fill out the first part, and it will give you a list of insurance carriers

Make sure you know what your Adjusted Gross Income wasfor 2013, then Pick out your selection\.

Once selected you will fill out the rest of the applicaton and submit it will take about 5-10 minutes to find out if your accepted.

You make your first payment setting up automatic monhly withdrawals or waiting for a statment for you payment. An now you have insurance.

Have a good day
thank you


Frank’s Tax and Business Service
Franklin Katz, ATP, PA, PB,
315 E. King St.
KingsMountain, NC28086-3151
(704) 739-4039

Fax:(704) 739-3934 (ignore the face, it was ment togo first in body)
e-mail:
frankstaxservice@bellsouth.net
Web Site: Http://www.frankstaxbusiness.com


Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have
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*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov
 
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