The Affordable Care Act And Your Income Taxes
Which category of individual tax return filer do you fall into and how do you avoid the “Individual Responsibility Payment” (i.e. tax)? Are you covered under a “qualifying health insurance plan” (e.g. employer or medicare coverage), which offers “minimum essential coverage”, and are therefore exempt from the payment? Are you in an exempt category, due to your income level, or other qualifications, which allows you to avoid the payment? Or did you buy your health insurance on either the Federal or State of WA health care exchange and are therefore receiving an “Advance Premium Credit”, which means when your tax return is prepared you’ll either receive an additional premium tax credit, or else you’ll pay the individual responsibility payment? Since this is the first year of required reporting of the ACA on your annual individual income tax return, along with its related taxes and credits, there is a new degree of complexity in preparing even the simplest of tax returns, so please contact us if you have any questions or need our assistance in preparing your 2014 income tax return. We also want to take a minute to welcome Chrissy Hammond to our staff – please tell her hello when you call or come by our office.
Posted Feb. 20, 2015/wittenbergcpa.com