Posted on 12/26/2014 8:39:15 AM PST by Theoria
If you decided to skip health insurance this year, consider this: Unless you can prove you have a valid excuse, you will be liable for a penalty during the coming tax season — and the time to start making your case is now.
That’s not all. People who bought subsidized insurance through one of the marketplaces may have new tax forms to complete, while paying the penalty itself may demand some serious number-crunching.
The Internal Revenue Service is gearing up to answer questions, but it warns that only half of the callers may get through — and those who succeed may have to wait a half-hour or more.
“There are quite a number of moving parts that taxpayers have not had to deal with,” said Kristin Esposito, technical tax manager for the American Institute of Certified Public Accountants.
The Obama administration’s Affordable Care Act — including its penalty provision — is in effect for the first time this year and will be reconciled through a person’s tax return. Continue reading the main story
For most taxpayers, this will simply mean checking a box on a tax return indicating they had insurance for the full year. But millions of others will have to grapple with new tax forms and calculations that may generate unexpected results.
For instance, most of the 6.7 million people who bought insurance through the exchanges received subsidies, which reduced their monthly premiums. But those subsidies were based on previous years’ income — so people whose incomes have changed will inevitably have to pay some of that money back, while others may receive fatter refunds.
(Excerpt) Read more at nytimes.com ...
Yup. More taxes.
Thanks Boner and McConman - for fully funding Obamacare through 2015.
For most taxpayers, this will simply mean checking a box on a tax return indicating they had insurance for the full year. But millions of others will have to grapple with new tax forms and calculations that may generate unexpected results.
And what is to stop people from just checking the box whether they had insurance or not? Fear?
If there were no income tax, how would 0bamacare be put forth?
Do you think the same lefties who push 0bamacare are the same bunch who try to make sure we keep the income tax in place?
Santa will know.
Actually, its those cowardly Republicans who make sure to keep them in place.
They’re so petrified over a government shutdown that they obligingly give Obama everything he wants anyway.
Why bother voting for them when they can’t stop Obama’s policies?
I’m happy I stayed home in November.
#1. I want it to collapse.
#2. Absolutely. It no longer is about funding government operations. It’s about political intimidation and income redistribution. It has to go and it’s destruction should be a #1 priority.
You could be one of the millions contacting their rep to tell them to change leadership.
It might work, it might not. The only certainty is that not trying to change will ensure no change.
Occasionally I hear someone say that they “like” Obamacare, always because either they or someone important to them has insurance that they could not have gotten for some reason before Obamacare. They ignore the fact of all the people who are much worse off because of Obamacare.
True.
But I’m not counting on the GOP to reverse it.
Yeah it never really was - not even in 1913. It is a socialist dream come true. Undoing it will be difficult and effort will have to be made. You can find work to do here.
Repeal the 16th amendment. Fund the government through excise taxes [as the founders wanted] on retail consumption.
The closest thing is the "Fair Tax".
If you get insurance from the marketplace, expect to receive a form 1095-A. You cannot file without it. And it disqualifies you from filing the 1040EZ. Next, you would need to file form 8962 to true up your subsidy based on estimated income with your actual income. Yes, you are responsible to pay the difference. Or you could actually get additional credits if you overestimated income.
Uninsured? And that includes ANYONE you claim as a dependent. You have a penalty calculation to do and yet another form, 8965, to file to claim an exception. And, oh, by the way, the penalty is the GREATER of $95 or 1% of your MAGI, PER PERSON. Half that for children. Yes, there are caps on all that but only if you are below 400% of the Federal Poverty Level.
Think you can avoid the bill by adjusting withholding to have a zero refund? Think again. All the IRS is prevented from with respect to the ACA is using their Liens and Levy toolkit. All other collection methods are in play. You still owe the amount and interest will accrue. Sooner or later there will be an offset from any other gubermint money coming your way.
This year, only the penalty of perjury and the risk that you'd have to furnish proof during an audit.
Next year, you will receive a 1095-A, -B, or -C from your insurer as the only means to prove coverage. Or you'd need an exemption, most of which are only available from the marketplace and all would require form 8965.
As soon as anyone is actually dinged for the tax, then he has standing to appeal that it is an unconstitutional tax (the Roberts court did not treat that aspect of it, it only said it was a tax).
So it’s possible that King Barack may tell the IRS not to ding anybody.
The FairTax is the best option of everything I have looked at over the years.
If I could just swallow that “prebate” pill I would be on-board.
So far, though, it is stuck in my throat and won’t go down.
This will have absolutely no effect. Congressmen do not even bother to count those letters or phone calls.
What they do count is campaign donations. A six-figure donation will get their attention. A seven-figure donation will get favorable action, especially if it is backed by an organization with 50k+ members that can take to the streets for some "peaceful protests".
We are long past the time we can fix anything by voting a ballot.
The prebate raises the rate too... iirc it adds like almost 3% to the rate. That’s why I’m not pleased with it. I’d prefer a lower rate without any tax refunds.
Which is usually for a pre-existing condition. That is no longer insurance.
The Obamacare mandate is going up in flames. Not only is it unenforceable, but there will be too many scofflaws (bless their hearts), tens of millions.
Of course King Barack could declare an amnesty on this, too. As lame duck all he has is Machiavellian mode now.
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