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IRS 2014 Forms Related to Subsidies & Penalties Released.
- Thread starter AllenChicago
- Start date
- Thread starter
- #32
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I didn't miss it Somarco. It was in the 7/24/2014 batch of forms that I referenced to start this thread.
Anyway..here's something that will make some people think twice about purchasing, or renewing their plan on-exchange for 2015. They may want to buy off-exchange.
Today (9-18-2014) the IRS released the instructions for completing 8962, the Premium Tax Credit form that all subsidy recipients will have to trudge through.
Accountants were wondering why it was taking so long for the IRS come out with instructions for completing PTC Form 8962. Now the reason is clear...The instructions are 15 pages long!
PremTaxCredit Form 8962 Instructions: http://www.irs.gov/pub/irs-dft/i8962--dft.pdf
--AND--
The Instructions for either claiming an exemption from the requirement to have health insurance (IRS Form 8965), or calculating your penalty tax if you can't think of an exemption, was released today too. This is 13 pages long.
IRS Form 8965 Instructions for Exempting, or Paying the Penalty: http://www.irs.gov/pub/irs-dft/i8965--dft.pdf
ac
Anyway..here's something that will make some people think twice about purchasing, or renewing their plan on-exchange for 2015. They may want to buy off-exchange.
Today (9-18-2014) the IRS released the instructions for completing 8962, the Premium Tax Credit form that all subsidy recipients will have to trudge through.
Accountants were wondering why it was taking so long for the IRS come out with instructions for completing PTC Form 8962. Now the reason is clear...The instructions are 15 pages long!
PremTaxCredit Form 8962 Instructions: http://www.irs.gov/pub/irs-dft/i8962--dft.pdf
--AND--
The Instructions for either claiming an exemption from the requirement to have health insurance (IRS Form 8965), or calculating your penalty tax if you can't think of an exemption, was released today too. This is 13 pages long.
IRS Form 8965 Instructions for Exempting, or Paying the Penalty: http://www.irs.gov/pub/irs-dft/i8965--dft.pdf
ac
- Thread starter
- #33
- 8,448
9-25-2014
Excerpts from: Implementing Health Reform: Complicated ACA Tax Forms Could Cause Problems – Health Affairs Blog
"On September 15, 2014 the Internal Revenue Service released draft instructions for form 8965. On September 17, 2014, the IRS released draft instructions for form 8962. It is difficult to overstate how complicated these instructions are. The tax credit and individual responsibility provisions of the ACA were complicated to begin with, but have become ever more complex as new exceptions and special rules have been created as implementation of the legislation has proceeded. Many of the mostly low income Americans who will be completing these forms are marginally literate, at least in English, and have been accustomed to filing very simple tax forms like the 1040-EZ (which cannot be used by an individual claiming a tax credit) or perhaps not to filing taxes at all. They are likely to be confused, frustrated, even angry, and certainly bewildered, completing these forms"
"These instructions are so far only in draft form. They need serious rethinking, however, or we may be heading into a disaster in the spring of 2015 as bad as that we experienced in the fall of 2013. Of course, the problems presented by these forms are inherent in any health care reform that uses the tax system to finance insurance coverage. Republican proposals would present the same complexities. But health care reform does not need this distraction. Some way must be found to simplify this process."
ac
Excerpts from: Implementing Health Reform: Complicated ACA Tax Forms Could Cause Problems – Health Affairs Blog
"On September 15, 2014 the Internal Revenue Service released draft instructions for form 8965. On September 17, 2014, the IRS released draft instructions for form 8962. It is difficult to overstate how complicated these instructions are. The tax credit and individual responsibility provisions of the ACA were complicated to begin with, but have become ever more complex as new exceptions and special rules have been created as implementation of the legislation has proceeded. Many of the mostly low income Americans who will be completing these forms are marginally literate, at least in English, and have been accustomed to filing very simple tax forms like the 1040-EZ (which cannot be used by an individual claiming a tax credit) or perhaps not to filing taxes at all. They are likely to be confused, frustrated, even angry, and certainly bewildered, completing these forms"
"These instructions are so far only in draft form. They need serious rethinking, however, or we may be heading into a disaster in the spring of 2015 as bad as that we experienced in the fall of 2013. Of course, the problems presented by these forms are inherent in any health care reform that uses the tax system to finance insurance coverage. Republican proposals would present the same complexities. But health care reform does not need this distraction. Some way must be found to simplify this process."
ac
It's things like this that make me wonder exactly how far ahead of the game you are if you get a subsidy, and then have to pay an accountant to file the brand new and more complex form.
I'm sure there's a break-even point where the accountant costs more than the subsidy.
Anyone have an idea of what clients can expect for an accountant to decipher and file these new forms?
I'm sure there's a break-even point where the accountant costs more than the subsidy.
Anyone have an idea of what clients can expect for an accountant to decipher and file these new forms?
Seems like one of the tax prep firms like Liberty threw out a $40 figure but then said it was merely an estimate.
It's not just the $40, it's the reconciliation process as well. If your credit was too big you pay it back, if too small somehow the govt is supposed to refund the difference.
It should be obvious the folks that designed this system had no idea what they were doing.
- Thread starter
- #37
- 8,448
December 21, 2014
Here we are on the eve of the most important filing season since ObamaCare was enacted, and the I.R.S. is warning that it's almost "crippled".
Ref: IRS officials warn: We're nearly crippled | TheHill
I can imagine a lot of clients cheering when they read this!
ac
Here we are on the eve of the most important filing season since ObamaCare was enacted, and the I.R.S. is warning that it's almost "crippled".
Ref: IRS officials warn: We're nearly crippled | TheHill
I can imagine a lot of clients cheering when they read this!
ac
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