We’re in the thick of tax season, and this year is more challenging than previous years. Two significant parts of the Affordable Care Act are affecting individual returns this year: the premium tax credit and the individual shared-responsibility payment.
As the AICPA’s newsletter, Tax Insider, discussed in the March edition, the complexity is coming from the numerous definitions, exceptions, transition rules, yearly indexing affecting calculations, and challenges that IRS has had in finalizing what’s needed to implement the law.
At the same time, we’re advising applicable large employers on actions to take to avoid the employer mandate penalty (Sec. 4980H) and handle reporting required on new Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
All of these changes mean more time spent with each client, and on each client’s return. We’re committed to keeping our clients ahead of the curve on all the changes, and we recommend planning to have your information to us a little earlier this year, to make sure you’re aware of what parts of the law will affect you, and to give us time to advise you.