Thursday, October 2, 2014

IRS Tax Tips: Affordable Care Act - Individuals

Find out if you qualify for a Health Coverage Exemption in  Publication 5172, Health Coverage Exemptions.

The Affordable Care Act calls for each individual to have qualifying health insurance coverage for each month of the year, have an exemption, or make an individual shared responsibility payment when filing his or her federal income tax return.

You may be exempt if you:
  • Have no affordable coverage options because the minimum amount you must pay for the annual premiums is more than eight percent of your household income,
  • Have a gap in coverage for less than three consecutive months, or
  • Qualify for an exemption for one of several other reasons, including having a hardship that prevents you from obtaining coverage or belonging to a group explicitly exempt from the requirement.
On, you can find a comprehensive list of the coverage exemptions.

Tax Deadline October 15

It's now less than two weeks to file individual income tax returns for 2013 for those who are on extension. Here is a list of often overlooked credits and deductions:
  • Benefits for low-and moderate-income workers and families, especially the Earned Income Tax Credit. The special EITC Assistant can help taxpayers see if they’re eligible.
  • Savers credit, claimed on Form 8880, for low-and moderate-income workers who contributed to a retirement plan, such as an IRA or 401(k).
  • American Opportunity Tax Credit, claimed on Form 8863, and other education tax benefits for parents and college students.
  • Same-sex couples, legally married in jurisdictions that recognize their marriages, are now treated as married, regardless of where they live. This means that they generally must file their returns using either the married filing jointly or married filing separately filing status. Further details are on
Need help to determine if you qualify, see my Contact Page.

The IRS encourages all taxpayers to e-file their returns, which is generally more convenient and faster. The IRS also now offers an online payment method, Direct Pay. The IRS also makes it easy to sign up for an online payment agreement, Online Payment Agreement, where taxpayers can setup a monthly payment agreement if they cannot pay the entire bill in full (for those who owe $50,000 or less including penalties and interest).

Interested in learning more, contact me for more information!