This document provides an overview of how the Affordable Care Act impacts tax filing. It discusses reporting health coverage status, the premium tax credit for marketplace coverage, and exemptions from the individual mandate penalty. It explains the new Form 1095-A for marketplace enrollees and Form 8962 for reconciling advance premium tax credits. The document also reviews options for free tax preparation assistance and additional online resources for questions about ACA tax provisions.
Overview of the Cadillac Tax
The “Cadillac Tax” was created as part of the Patient Protection and Affordable Care Act of 2010 (PPACA). The Cadillac Tax is an excise tax that was designed to generate revenue to help in paying the Federal Government’s cost of the Affordable Care Act. It was also to serve as a deterrent against the purchase of high-cost plans. When you have a plan where members have larger personal out of pocket, those enrolled would tend to become better consumers and in turn help hold down the growing cost of healthcare.
Review our research and analysis on the Cadillac Tax to gain more insight into details. Contact McGohan-Brabender to explore options.
https://www.mcgohanbrabender.com/
What Is Life After Coronavirus? State and Local Tax: First Wave Response & Se...Rea & Associates
This free, high-level coronavirus overview is designed to help employers make sense of the state and local tax decisions to consider as the COVID-19 (coronavirus) crisis continues to unfold. Presented by Joe Popp, JD, LLM, a principal with Rea & Associates and the firm's director of state and local tax services, the hour-long presentation will cover the first wave of state and local tax department responses and will then move on to guidance for businesses and individuals who are preparing for the second wave of crisis response.
Specifically, this webinar will cover:
- Insight about the first wave of state and local tax responses and how tax departments are answering individuals and businesses during the COVID-19 crisis.
- Guidance on how to prepare for the next wave of decisions made by your state and local tax departments.
- Predictions on what states will do in the future as a result of the COVID-19 crisis.
Overview of the Cadillac Tax
The “Cadillac Tax” was created as part of the Patient Protection and Affordable Care Act of 2010 (PPACA). The Cadillac Tax is an excise tax that was designed to generate revenue to help in paying the Federal Government’s cost of the Affordable Care Act. It was also to serve as a deterrent against the purchase of high-cost plans. When you have a plan where members have larger personal out of pocket, those enrolled would tend to become better consumers and in turn help hold down the growing cost of healthcare.
Review our research and analysis on the Cadillac Tax to gain more insight into details. Contact McGohan-Brabender to explore options.
https://www.mcgohanbrabender.com/
What Is Life After Coronavirus? State and Local Tax: First Wave Response & Se...Rea & Associates
This free, high-level coronavirus overview is designed to help employers make sense of the state and local tax decisions to consider as the COVID-19 (coronavirus) crisis continues to unfold. Presented by Joe Popp, JD, LLM, a principal with Rea & Associates and the firm's director of state and local tax services, the hour-long presentation will cover the first wave of state and local tax department responses and will then move on to guidance for businesses and individuals who are preparing for the second wave of crisis response.
Specifically, this webinar will cover:
- Insight about the first wave of state and local tax responses and how tax departments are answering individuals and businesses during the COVID-19 crisis.
- Guidance on how to prepare for the next wave of decisions made by your state and local tax departments.
- Predictions on what states will do in the future as a result of the COVID-19 crisis.
Asia Counsel Insights gives readers a concise insight into legal and business developments in Vietnam. This edition has news on internet regulations and social network sites; multi-level marketing and micro-finance institutions.
Form 990 is one of the few tax filings the government makes publicly available. It provides a chance to tell your story to donors, potential donors and the general public -- and it's part of the evolving means by which not-for-profit organizations are evaluated. Learn to identify risk areas and best practices to leverage the form's content to most effectively present your not-for-profit organization to your constituencies.
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This bulletin details the release of a number of forms and compliance tools to assist employers subject to the Affordable Care Act’s (ACA) Shared Responsibility Requirements to comply with the law. Of particular note, the finalized version of the forms used to satisfy the IRC Section 6056 and 6055 reporting requirements, together with the related instructions, have been issued. While the forms released last week were for the 2014 calendar year reporting (the voluntary reporting year for all employers), it is presumed the mandatory forms to be released for 2015 reporting later this year will be quite similar to those just issued.
Puerto Rico: Value Added Tax - Impact to Educational services & Non-profit or...Alex Baulf
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March3 1, 2016.
This guidance issued by Kevane Grant Thornton LLP specifically relates to educational services and non-profit organizations.
Successfully Navigating the Tax Filing MomentEnroll America
Slides from an Enroll America webinar on January 26, 2015. Join hosts Enroll America and Intuit TurboTax to hear about how taxes and health coverage are now more connected now than ever. With health coverage status affecting taxes for the first time this year and the close of the second open enrollment period (OE2) overlapping with the start of the tax filing season, enrollment stakeholders should seize the tax filing moment as another great venue to help consumers get covered and stay covered. Come learn about ways to leverage partnerships with tax-focused groups and get answers to your questions about the ways health coverage relates to tax filing. This webinar is appropriate for enrollment stakeholders working on outreach and enrollment.
Working With the Criminal Justice Population Enroll America
Simply having health coverage can significantly reduce the odds that an individual involved in the criminal justice system will be arrested or incarcerated in the future. Yet enrollment during release and probation can be difficult. Interested in learning how the enrollment community and probation organizations can work together to help meet the promise of access for this special population? Check out the slides of this webinar from August 4, 2015, on how to navigate new partnerships with the criminal justice system, promising practices for consumer engagement, and post-enrollment support.
Increasing Retention and Reducing Churn Through Innovative Renewal StrategiesEnroll America
While the enrollment community has already made significant progress in connecting the uninsured to coverage over the last two open enrollment periods, action must be taken to address a crucial element in helping consumers maintain coverage —annual renewal. Come learn directly from Michigan Primary Care Association staff that have been actively involved in developing and implementing innovative strategies, materials, and partnerships to increase health coverage retention rates.
Asia Counsel Insights gives readers a concise insight into legal and business developments in Vietnam. This edition has news on internet regulations and social network sites; multi-level marketing and micro-finance institutions.
Form 990 is one of the few tax filings the government makes publicly available. It provides a chance to tell your story to donors, potential donors and the general public -- and it's part of the evolving means by which not-for-profit organizations are evaluated. Learn to identify risk areas and best practices to leverage the form's content to most effectively present your not-for-profit organization to your constituencies.
Health Reform Bulletin: Finalized ACA Reporting Forms & Employer Appeals to M...CBIZ, Inc.
This bulletin details the release of a number of forms and compliance tools to assist employers subject to the Affordable Care Act’s (ACA) Shared Responsibility Requirements to comply with the law. Of particular note, the finalized version of the forms used to satisfy the IRC Section 6056 and 6055 reporting requirements, together with the related instructions, have been issued. While the forms released last week were for the 2014 calendar year reporting (the voluntary reporting year for all employers), it is presumed the mandatory forms to be released for 2015 reporting later this year will be quite similar to those just issued.
Puerto Rico: Value Added Tax - Impact to Educational services & Non-profit or...Alex Baulf
Act 72 which amends the Internal Revenue Code for a New Puerto Rico introduces a value added tax system in Puerto Rico that will replace the Sales and Use tax system (“SUT”) effective April 1, 2016, for state tax purposes. The SUT will continue to be in place for municipal tax purposes after
March3 1, 2016.
This guidance issued by Kevane Grant Thornton LLP specifically relates to educational services and non-profit organizations.
Successfully Navigating the Tax Filing MomentEnroll America
Slides from an Enroll America webinar on January 26, 2015. Join hosts Enroll America and Intuit TurboTax to hear about how taxes and health coverage are now more connected now than ever. With health coverage status affecting taxes for the first time this year and the close of the second open enrollment period (OE2) overlapping with the start of the tax filing season, enrollment stakeholders should seize the tax filing moment as another great venue to help consumers get covered and stay covered. Come learn about ways to leverage partnerships with tax-focused groups and get answers to your questions about the ways health coverage relates to tax filing. This webinar is appropriate for enrollment stakeholders working on outreach and enrollment.
Working With the Criminal Justice Population Enroll America
Simply having health coverage can significantly reduce the odds that an individual involved in the criminal justice system will be arrested or incarcerated in the future. Yet enrollment during release and probation can be difficult. Interested in learning how the enrollment community and probation organizations can work together to help meet the promise of access for this special population? Check out the slides of this webinar from August 4, 2015, on how to navigate new partnerships with the criminal justice system, promising practices for consumer engagement, and post-enrollment support.
Increasing Retention and Reducing Churn Through Innovative Renewal StrategiesEnroll America
While the enrollment community has already made significant progress in connecting the uninsured to coverage over the last two open enrollment periods, action must be taken to address a crucial element in helping consumers maintain coverage —annual renewal. Come learn directly from Michigan Primary Care Association staff that have been actively involved in developing and implementing innovative strategies, materials, and partnerships to increase health coverage retention rates.
This article on your 2016 tax return and tax planning tips for nonqualified deferred compensation plans is reprinted with permission of myNQDC.com, a respected source of information, content, and tools on nonqualified deferred compensation.
IRS Tax Fourth Stimulus Checks What You Need to Know.pdfshazia Lkhair
In the ever-evolving landscape of government relief programs, many Americans are wondering about the possibility of a fourth stimulus check. With the ongoing economic challenges resulting from the COVID-19 pandemic, discussions about additional financial support from the government have been circulating. However, it's important to understand the potential implications that come with such assistance, especially when it comes to taxes. In this blog, we'll explore the concept of IRS tax fourth stimulus checks and what you need to know.
The Status of a Fourth Stimulus Check:
As of my last knowledge update in September 2021, there was no definitive confirmation of a fourth stimulus check. Various proposals had been put forward, but their status remained uncertain. To get the most current information, it's crucial to check the latest news sources or the official IRS website for updates on any developments regarding a fourth stimulus check.
Maximizing Your Tax Refund: Strategies to Boost Your ReturnsThe Kalculators
When tax season approaches, many individuals eagerly anticipate receiving a tax refund. A tax refund is the amount of money returned to you by the government when you've paid more in taxes than your actual tax liability. However, to make the most of this opportunity, it's crucial to understand effective strategies for maximizing your tax refund. In this blog post, we will explore several actionable tips that can help you boost your tax refund and put more money back in your pocket.
Below is a list of consumer reporting companies updated for 2019.1 Consumer reporting companies collect information and provide reports to other companies about you. These companies use these reports to inform decisions about providing you with credit, employment, residential rental housing, insurance, and in other decision making situations. The list below includes the three nationwide consumer reporting companies and several other reporting companies that focus on certain market areas and consumer segments. The list gives you tips so you can determine which of these companies may be important to you. It also makes it easier for you to take advantage of your legal rights to (1) obtain the information in your consumer reports, and (2) dispute suspected inaccuracies in your reports with companies as needed.
Cleaning Up Your Tax with Voluntary Disclosure AgreementsCBIZ, Inc.
While paying taxes might not be our favorite pastime, the overwhelming majority of taxpayers strive to file and pay all of their tax obligations. However, sometimes taxpayers' best efforts to comply with their tax obligations are not enough, especially in the state and local tax world. Although it may be an innocent mistake, such non-compliance may be very costly if it is first discovered by the state or local taxing jurisdiction, because the taxpayer will not only be subject to tax and interest but also harsh penalties (up to 25 percent or more).
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Kenneth Kruk's story of transforming challenges into opportunities by leading successful medical record transitions and bridging scientific knowledge gaps during COVID-19.
Rate Controlled Drug Delivery Systems, Activation Modulated Drug Delivery Systems, Mechanically activated, pH activated, Enzyme activated, Osmotic activated Drug Delivery Systems, Feedback regulated Drug Delivery Systems systems are discussed here.
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In order to protect visitors' safety and wellbeing, Travel Clinic Leicester offers a wide range of travel-related health treatments, including individualized counseling and vaccines. Our team of medical experts specializes in getting people ready for international travel, with a particular emphasis on vaccines and health consultations to prevent travel-related illnesses. We provide a range of travel-related services, such as health concerns unique to a trip, prevention of malaria, and travel-related medical supplies. Our clinic is dedicated to providing top-notch care, keeping abreast of the most recent recommendations for vaccinations and travel health precautions. The goal of Travel Clinic Leicester is to keep you safe and well-rested no matter what kind of travel you choose—business, pleasure, or adventure.
Empowering ACOs: Leveraging Quality Management Tools for MIPS and BeyondHealth Catalyst
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In this session, we will explore how a robust quality management solution can empower your organization to meet regulatory requirements and improve processes for MIPS reporting and internal quality programs. Learn how our MeasureAble application enables compliance and fosters continuous improvement.
Stem Cell Solutions: Dr. David Greene's Path to Non-Surgical Cardiac CareDr. David Greene Arizona
Explore the groundbreaking work of Dr. David Greene, a pioneer in regenerative medicine, who is revolutionizing the field of cardiology through stem cell therapy in Arizona. This ppt delves into how Dr. Greene's innovative approach is providing non-surgical, effective treatments for heart disease, using the body's own cells to repair heart damage and improve patient outcomes. Learn about the science behind stem cell therapy, its benefits over traditional cardiac surgeries, and the promising future it holds for modern medicine. Join us as we uncover how Dr. Greene's commitment to stem cell research and therapy is setting new standards in healthcare and offering new hope to cardiac patients.
Navigating Challenges: Mental Health, Legislation, and the Prison System in B...Guillermo Rivera
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TEST BANK For Accounting Information Systems, 3rd Edition by Vernon Richardson, Verified Chapters 1 - 18, Complete Newest Version
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DECODING THE RISKS - ALCOHOL, TOBACCO & DRUGS.pdfDr Rachana Gujar
Introduction: Substance use education is crucial due to its prevalence and societal impact.
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Tobacco Use: Immediate effects include increased heart rate, while long-term risks encompass cancer and heart disease.
Drug Use: Risks vary depending on the drug type, including health and psychological implications.
Prevention Strategies: Education, healthy coping mechanisms, community support, and policies are vital in preventing substance use.
Harm Reduction Strategies: Safe use practices, medication-assisted treatment, and naloxone availability aim to reduce harm.
Seeking Help for Addiction: Recognizing signs, available treatments, support systems, and resources are essential for recovery.
Personal Stories: Real stories of recovery emphasize hope and resilience.
Interactive Q&A: Engage the audience and encourage discussion.
Conclusion: Recap key points and emphasize the importance of awareness, prevention, and seeking help.
Resources: Provide contact information and links for further support.
PET CT beginners Guide covers some of the underrepresented topics in PET CTMiadAlsulami
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LGBTQ+ Adults: Unique Opportunities and Inclusive Approaches to CareVITASAuthor
This webinar helps clinicians understand the unique healthcare needs of the LGBTQ+ community, primarily in relation to end-of-life care. Topics include social and cultural background and challenges, healthcare disparities, advanced care planning, and strategies for reaching the community and improving quality of care.
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About this webinar: This talk will introduce what cancer rehabilitation is, where it fits into the cancer trajectory, and who can benefit from it. In addition, the current landscape of cancer rehabilitation in Canada will be discussed and the need for advocacy to increase access to this essential component of cancer care.
This document is designed as an introductory to medical students,nursing students,midwives or other healthcare trainees to improve their understanding about how health system in Sri Lanka cares children health.
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Understanding the Connection Between Tax Filing and Health Coverage
1. These slides seek to provide a basic understanding of the connection between tax filing and
health coverage, where people can go for tax assistance, and additional resources to
answer tax-related questions. They are not intended to provide comprehensive policy
guidance for every specific situation.
1
2. Here’s a quick overview of what these slides cover:
First, they start with the basics in terms of what’s new on people’s taxes this year.
Then as they go through the intersections between enrollment issues and taxes, they’ll
walk through the actual tax forms involved in this process to help people get a better
understanding of what the changes to the tax filing process will look like. But the intent is
not to turn everyone into tax experts, and the reality is that most consumers will
experience this process without ever directly interacting with some of these forms.
After reviewing these news forms, you may wonder how regular people going to actually
navigate these new changes. It’s crucial to remember that there are a ton of tax assistance
options and resources to help people complete their taxes, and the slides close by
reviewing the range of help available.
2
4. The Affordable Care Act is made up of many provisions, but some of its most significant
ones related to financial help involved making new changes to the tax code. That’s why
starting this year, consumers will see some changes to their tax returns.
The main areas related to enrollment work that involve new tax-related changes are the
new coverage reporting requirement, the premium tax credit for marketplace coverage,
and claiming exemptions/implementing the fine for those without coverage.
4
6. So what does the federal government really want to know in terms of reporting your health
insurance status?
The requirement to maintain health insurance specifies that you need to have the right
kind of coverage, (“minimum essential coverage” also known as MEC). Now the good news
is that nearly every type of coverage is minimum essential coverage (any type of
employer coverage, Medicare, a plan someone buys through the individual market
(whether on the marketplace or not), and Medicaid.
Everybody on your tax return must have that coverage (such as your spouse or child), and
you need to be covered for each month of the year. If you don’t have minimum essential
coverage each month, and don’t have an exemption, you will have to pay a fine on the tax
return.
6
7. Reporting health coverage is a very easy process for most consumers.
Here’s the deal, over 3 quarters of people just get to check a box on their tax return to
report their health coverage status (including people with Medicaid, employer-based
coverage, and Medicare), and then they’re done with any ACA-related requirements. You
can see up top on the slide that “full-year coverage box”.
Marketplace enrollees receiving financial help will need to do more however than just
checking the box.
7
8. Marketplace coverage is different because the federal government is helping make private
coverage more affordable for millions of Americans. As part of this, the federal government
needs to confirm that it’s paying the right amount.
It’s important to remember that when people say premium subsidies, they’re really
referring to premium tax credits.
We know that most enrollees received advance payments of these tax credits during the
year, with the amount being paid of their behalf to their health insurance plan directly tied
to their household income (among other factors).
8
9. So how do marketplace enrollees figure out what they need to do on their taxes?
Every marketplace enrollee (whether or not they received financial help during the year)
gets a new tax form (form 1095-A) sent by the marketplace itself through the mail. In
federally-facilitated marketplaces (FFMs), the 1095-A is also available online through their
HealthCare.gov account. Some state-based marketplaces (SBMs) make the form available
online also.
If they received advance payments of the premium tax credit during the year, that will be
listed below in Part III of the form (the amount for each month is listed). Consumers must
then transpose this information onto Form 8962 (which we’ll review in a few slides).
This form isn’t too different than a W-2 that you’d receive from a job. There’s a bunch of
information in the boxes on the form, and then consumers must take that information and
enter it onto the tax return.
9
10. Form 8962 is the new form where marketplace enrollees will actually claim the premium
tax credit.
On the first part of the form, consumers need to input the basic info about their household
income, family size, and federal poverty level (this will be calculated by tax preparation
software that they are using) just like the Get Covered Calculator and the marketplace uses
when consumers are applying for coverage when they enroll.
10
11. The second part of the form is where the where the actual “reconciliation” of premium tax
credits occurs.
Just like taxpayers reconcile their taxes withheld with their actual tax liability through
other tax forms and get refunds or make additional payments when they file, starting
this year, individuals getting financial assistance for Marketplace coverage will follow the
same process.
So it may seem complicated, but this is just figuring out the monthly amounts people paid
in premiums, and how much financial help they could qualify for each month, which is then
added together.
As we continue, we’ll cover the important role that tax preparation assistance can play, but
for most consumers they’ll basically never even see these forms. They’ll input the
information and tax preparation software will handle the rest.
11
12. So let’s walk through an example about how the reconciliation process works.
Remember that we’re comparing the financial help someone received in 2014 through the
marketplace with what they were actually eligible to receive based on the information on
their tax return to figure out what they owe the IRS or what additional money the IRS owes
them as a result.
12
13. Let’s say that someone received $5000 in financial help during last year to help pay for
their marketplace coverage. Remember that money went to their insurance plan for their
monthly premiums, not the consumer themselves, so some consumers may not recognize
that they were receiving financial help.
13
14. But ultimately, their actual income was a bit higher than anticipated for the year, so they
were actually eligible for less financial help (only $4,800 for the year).
14
15. Thus, as a result of this comparison during the reconciliation process on the tax return, the
consumer is entitled to a lower amount of financial help. The consumer will owe $200 back
to the IRS, and if getting a refund, this would just come off the top.
The Department of Treasury does not expect that the amount of settling up through
reconciliation will exceed the refund for many taxpayers.
15
16. It’s important to remember that there are protections for lower income taxpayers in
terms of how much they owe back as a result of reconciliation. These repayment limits
are designed to prevent unnecessary surprises at tax time for individuals.
16
17. And there are some particularly helpful protections for people right around the federal
poverty level.
There are special protections for marketplace enrollees whose income falls into the
Medicaid threshold by the end of the year. So if someone in Texas had income at 110% of
the FPL when they signed up, but their income dropped to 98% FPL at the end of the year,
they won’t owe money and could actually qualify for an additional credit on their tax
return.
And if Medicaid enrollees experience a sudden increase in income towards the end of the
year (such as through a December bonus), they would not have to owe any money back
either, as there is no reconciliation process related to Medicaid. When reporting that
change through the marketplace, they would then be able to transition to a marketplace
plan with tax credits.
17
18. Exemptions and the fine are another new and important process handled through the tax
return. As you can see, the fine amount increases significantly from 2014 to 2015. The
amounts are pro-rated on a monthly basis for people with partial year coverage, which will
be shown in more detail later.
A very small fraction of taxpayers will pay the fine if they made a choice to not obtain
coverage they could afford. Many consumers can qualify for an exemption to avoid the
fine.
18
19. There are many exemptions available to consumers, so it’s important that uninsured
consumers learn about which exemptions might be applicable to them.
Some of these exemptions are available on the tax return, others through the marketplace,
and some are even automatic. At this stage, it makes the most sense for consumers to
claim an exemption on their tax return because that avoids any extra paperwork. If needed,
they can apply separately through the marketplace.
In addition to these exemptions listed, undocumented consumers can also claim an
exemption on their tax return.
19
20. On the new tax form for exemptions (form 8965), consumers first have the opportunity to
input exemptions they were granted from the marketplace. When the marketplace grants
consumers an exemption, it will provide them an “exemption certificate number” code that
they need when filing their taxes.
20
21. The rest of the form allows consumers to claim an exemption on the tax return itself.
If you’re claiming a full year exemption based on income below the filing threshold, you can
just check a box. Below, you can also include the code for the type of exemption and check
a box if exempt for a full year. In cases where you are only eligible for an exemption for
certain months, you will need to denote which ones.
21
22. Let’s walk through a practice problem to see how the fine for partial year coverage would
work. In this situation, assume Gary is the only member of his tax household. To figure out
how much Gary owes, we need to figure out whether the flat dollar amount or percentage
of household income is greater.
The filing threshold for a single person for 2014 is $10,150.
He owes the greater of (7/12) * (95), which is $55 OR (7/12) * (.01) * (23,000-10,150),
which is $75.
Since $75 is the greater amount, that is what he is fined. As a result, if Gary would
otherwise have been receiving a $2,000 federal refund, he will get $1,925 instead.
22
24. Consumers aren’t alone when it comes to filing their taxes and navigating these new
intersections with the ACA.
Last year, 91 percent of taxpayers relied on some form of tax preparation services to do
their taxes. Studies confirm that low-income taxpayers file with the aid of tax preparers,
including nearly two-thirds of people who claim the earned income tax credit (EITC).
All the major tax preparation companies are equipped to help them navigate these new
ACA requirements when they file their returns. And for those looking for entirely free
options, the Volunteer Income Tax Assistance (VITA) program offers in-person free tax
preparation services to people that meet certain income thresholds. You can find a VITA
site at http://irs.treasury.gov/freetaxprep/. The Free File program also provides free online
software options to consumers with incomes below $60,000.
You should make sure to help protect consumers from those individuals, whether they be
disreputable tax preparers or payday lenders, that unfortunately use tax filing season to
pray on unsuspecting consumers. Please make sure that you are only referring people to
places that operate legitimate tax operations.
24
25. If looking for further information, you can see specific resources related to exemptions on
Enroll America’s website as well as the recording and slides from a joint webinar we
recently held with Intuit TurboTax. The Center on Budget and Policy Priorities also has put
together numerous helpful and in-depth policy resources related to taxes on their website
through their Beyond the Basics series (some of which were used in preparing these slides).
These resources and more can be found at
http://www.enrollamerica.org/resources/webinars/successfully-navigating-the-tax-filing-
moment/?utm_source=EA_homepage&utm_medium=sidebar_1&utm_campaign=EA_hom
epage.
25