Read below for do it yourself bookkeeping tips, announcements and tax news
Important Tax Reminders
• First quarter individual estimated tax payments are due April 15.
• The deadline for filing a Form 1040 or an extension and paying any tax due is April 15.
Facts about Health Care Coverage
This is the first year that taxpayers are experiencing the effects of the Affordable Care Act (ACA). The IRS requires taxpayers to report on their 2014 tax return whether or not their household maintained minimum essential health coverage for each calendar month of 2014. Those who failed to comply with this individual mandate may face a penalty called the “shared responsibility payment.”
It’s estimated that as many as 80% of taxpayers have met the minimum essential health coverage and need to only check a box on their tax return. Minimum essential health coverage includes most employer-sponsored coverage and retiree plans, Medicare, Medicaid and the Children’s Health Insurance Program. The remaining taxpayers have either purchased coverage through the Health Insurance Marketplace (Exchange) or are uninsured. Taxpayers who purchased through the Exchange face a lot of paperwork and possible subsidy reimbursements or repayments. The uninsured could face penalties ranging from $95–$2,448 for an individual and up to $12,240 for a family of five or more. If they’re not covered in 2015, the penalty will increase to as much as 2% of their income. If you were uninsured in 2014 or might be in 2015, there may be an exemption you can claim to avoid the penalties. Certain exemptions can be claimed on your tax return, while others must be applied for through the Exchange. Contact us to discuss your situation and we can assist you in applying for these exemptions, if applicable.
These extended provisions will be taken into consideration when we prepare your 2014 tax return. It’s important to know that the above provisions have already expired, as they were only approved retroactively for 2014, leaving their status for 2015 and beyond in limbo. We can help you to plan around these provisions for the upcoming year during our appointment.
Did You Know?
“It was one of those March days when the sun shines hot and the wind blows cold: when it is summer in the light, and winter in the shade.” ~Charles Dickens