Under the Affordable Care Act, eligibility for income-based Medicaid and subsidized health insurance, such as Covered California, through the marketplaces is calculated using the modified adjusted gross income (MAGI) of your household. Let's take a look at how this MAGI is different then the Adjusted Gross Income found on your tax return.
Starting in 2019, the penalty imposed on people who don't have qualified health insurance will go away. This penalty is still in effect through 2018, however.
Alert. 800,000 Form 1095-A's have Errors
Last week the Centers for Medicaid and Medicare Services announced that approximately 800,000 Form 1095-A’s were issued with errors on them. The error could cause you to file an incorrect tax return that claims a higher Premium Tax Credit than you have a right to collect.
New for tax year 2014 is the requirement to have health insurance. If you do not have qualified health insurance coverage AND you do not fit into one of the limited exemptions you will need to pay a fine, tax, or as the government calls it, an “individual shared responsibility” payment. So how do you prove you have the required health insurance? It is not a simple thing.
A reminder to employers: Effective January 1 of this year, you may no longer
In this issue:
The Month of May:
School bells are ringing once again as summer draws to a close. This month's newsletter covers an array of topics from the recent warning of increased telephone scams by the IRS to helping identify when it is time to help parents with their financial management. Also included are circumstances when you need to make changes to your Healthcare Marketplace account and how to use the creation of lists to save money.
As always, should you know of someone who may benefit from this information please feel free to forward this newsletter to them.
Premium Tax Credit: Upcoming Tax Surprise?
Here is a quick quiz to see if you are at risk
Based upon a recent report given to the Federal government evaluating data inconsistencies with the new health insurance market exchanges, over a million taxpayers could owe the government money at tax time. Here is a quick quiz to see if this risk applies to you.
Rules just issued by the Treasury Department give a one-year extension to the health insurance mandate for mid-sized businesses. Companies with 50 to 99 employees will now have until January 1, 2016, to provide health insurance for employees or face penalties. Employers must certify that they have not cut workers in order to come under the 100 employee threshold. Companies with 100 or more employees must still meet the January 1, 2015, deadline for providing health insurance coverage.
Health insurance tax credits are good medicine for small businesses
Small businesses may be missing out on an important new tax perk related to health insurance. And the stakes are even higher in 2014.