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Breaking Down The Affordable Care Act’s Tax Changes

The Affordable Care Act has forever changed the healthcare system in the United States. It’s also forever changed the tax codes.

The ACA was passed on March 23, 2010 and went into effect on Oct. 1, 2013. Changes that came with the ACA included improving the quality of healthcare and lowering healthcare costs, increasing access to healthcare and the addition of new protections for consumers. Starting in 2014, as a part of the ACA, all citizens are required to carry health insurance or pay a fine when they file their taxes in 2015.

This is where the individual share responsibility tax penalty comes into play. The penalty only applies to those who do not carry adequate health insurance or are exempt from doing so. Thus, the IRS has issued forms 1095-A, 8962 and 8965 that all relate to these new required reportings.

For most, avoiding this penalty will simply mean continuing current coverage. However, those who don’t have coverage or who are exempt from carrying coverage will have more questions for their personal accountants as April 1 quickly approaches.

If you’re wondering how the details of all this will change things for you, Surgent will host a webinar with Mike Tucker on Nov. 4 from 10 a.m. to 12 p.m. EST, where he will discuss reporting issues related to the Affordable Care Act.

The webinar is designed to break down how to prepare and process the new tax forms relating to the Affordable Care Act and the premium tax credit that applies for 2014. Titled, “Critical 1040 Reporting Issues Related to the New Affordable Care Act – Penalties and Premium Tax Credits (ACT2),” the webinar will cover:

– How to determine the amount of the individual shared responsibility penalty
– Statutory exemptions from mandated health insurance coverage
– How to obtain and calculate the amount of the premium tax credit
– Reconciling the amount of the individual’s premium tax credit awarded with the amount to which the individual is entitled
– Forms 1095-A, 8962 and 8965
– Problems with using Form 1040-EZ in 2014
– Complete case study with filled-in forms
The only prerequisite is knowledge of basic individual income tax and no advanced preparation is required. The webinar is IRS-qualified, worth two credits and costs $79.00.

Discover how the Affordable Care Act will change the way we report on taxes, and what you can do about it.

Breaking Down The Affordable Care Act’s Tax Changes was last modified: March 1st, 2017 by Surgent CPE
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