If you are among the numerous people who acquired health care via a health insurance exchange, then filing your return might entail more on your part this year. Taxpayers are expected to document their health care status on income tax returns. This is simply the year which could require that you obtain aid from a tax specialist if you want to make sure you understand all of the changes. Let’s take a minute to review a handful of typical concerns along with the advantages of having a professional assist you.
Who Exactly Is Exempt?
Those who are unable to find policies which costs 8 percent or less of their household’s gross income are not required to be insured. Also those who have had a gap in policy coverage which lasted no more than three months, those who have religious oppositions and Native American tribe members. Talking with a professional can easily help you establish if you are in a category that makes you a candidate for exemption.
How Can I Secure Exemption?
Most exemptions require a paper application along with supporting reports. These kinds of exemptions can require up to two full weeks to process. However, there are certain exemptions, that can only be claimed on your tax return. In some cases, you can even apply for retroactive exemptions. If your application is not granted, then you are actually allowed to appeal. Professionals have a comprehensive understanding of what exemption tools are available to you as well as the procedure of filing an appeal.
Are There New Income Tax Forms?
People that obtained insurance plans by means of state or federal insurance marketplaces are going to be given a 1095A form in the mail by January 31. This form, referred to as the Health Insurance Marketplace Statement, lists which members of the household are actually covered as well as for which time period. An income tax professional can help you to understand just what your premium costs would be. They can also inform you of exactly what tax credits you will be given.
Will I Be Punished Because Of Not Having Insurance Coverage?
In the event that you are not exempt then you are expected to pay back penalties. It is calculated on a month-by-month basis, meanings that you owe one-twelfth of the annual payment for every single month you or household members did not have insurance coverage or exemption. You are permitted to go three months consecutively without any insurance coverage before penalties start to kick in. A tax professional can help you with the penalty computations because they can be fairly tedious.
Exactly What Will Materialize If I Refuse To Pay My Penalty?
The I.R.S. will not use collection techniques, such as wage garnishments, placing liens in order to collect penalties nor will they prosecute you criminally. Nevertheless, the agency will withhold penalties from refunds owed. And if you are not owed refunds, the penalty rolls over and will accrue interest for 10 years.
In the 2015 income tax year, the I.R.S. will start to enforce more robust checks and balances, which notifies the agency about those that had health insurance coverage and those that did not because employers in addition to insurance providers are going to be required to send information to this agency. If you have an interest in discovering more about the effects of noncompliance, then it is recommended to speak with a competent tax professional.
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