What does this mean for you?
All persons must have Minimum Essential Coverage (MEC), which is comprehensive health insurance coverage, in order to comply with the requirements set forth in the ACA. This will require you to provide proof to your tax preparer, and will require the tax preparer to complete additional forms for your tax filing.
What does the taxpayer need to provide?
If you have health insurance:
You must show proof to your tax preparer by providing a Form 1095A, B or C. If you do not have this form, you must provide a copy of your Health Insurance Card, assurance that the plan meets the Minimum Essential Coverage, the number of months covered for 2014, and who is covered under the health insurance plan.
If you have coverage through the Marketplace at Healthcare.gov:
You will be provided with Form 1095A. This must be presented to your Tax Preparer prior to the completion of your taxes.
If you were without health insurance with a gap of insurance during the year:
There are some possible exemptions that will keep you from paying any penalties. It is important to contact your tax preparer now to ensure that the proper exemption forms are requested and received prior to the completion of your tax return.
What does this mean for Tax Preparers Requirement?
Due to the additional calculations for possible penalties, the additional Forms to be filed, and the due diligence to ensure the proper completion of your return, all tax preparers will require additional time to complete your return for the 2014 tax filing season.
What about Penalties?
All individuals who are not approved as exempt from coverage are subject to penalties for any month in which they did not have MEC. For 2014, these penalties are a minimum of $95 per adult plus $47.50 per child under age 18 for those who did not have coverage for the full year, and can max out at 1% of household income in excess of the filing threshold that applies to the taxpayer.
please schedule a time to discuss this with our Tax Professionals.