Very few people can consistently win on short term stock picks. If she is doing this successfully, she needs to be doing it full time and selling her picks to subscribers.
ObamaCare ACA Tax Penalty for 2015 & 2016
- Thread starter AllenChicago
- Start date
Very few people can consistently win on short term stock picks. If she is doing this successfully, she needs to be doing it full time and selling her picks to subscribers.
- 4,132
Agreed there are ways around it, for now.... but let's say the person is 30 years old and decides not to pay. That creates the possibility of the next 35 years of never having a refund. That could be pretty significant.
Look at how many people are excited when they get 5-10k in their refund checks? They think they've hit the lottery. "Look the government gave me back my money!"
I shoot for $500 either way in my planning for taxes. I don't want to use the federal government as a bank that pays no interest.
But again this isn't about us, it's about joe average person who doesn't really understand finance. Do we encourage people to not pay the penalty when they have such short memories when it comes to financial things?
Do we as professionals encourage someone not to pay the penalty and then ten years later when they are expecting a big return, find out the money was taken away to settle an old penalty? I don't trust people's memories all that much to ever advise someone not to pay. Even though there are ways around it and the IRS won't come get you till there's a return to be had. I don't want to be that trusted advisor who told somebody not to worry about it. But hey, that's just me.
edit: and I am not sure it stops at medicare age, does the tax lien go on until you stop filing? Does it effect estate taxes?
- Thread starter
- #33
- 8,448
I suggest that you don't encourage people to circumvent the law, LGilmore. So..the answer to your 2 questions is "no", in my opinion.
-allen
- 1,432
I was told by a client that they paid the 2014 tax penalty for all the family members even though only one went without coverage.
Does that sound right?
It seems illogical, but so much of the ACA rules are illogical.
The penalty is applied on a pro rata basis if a person is insured for 1 to 9 months, but is applied in full if only one of four members is uninsured?
Does that sound right?
It seems illogical, but so much of the ACA rules are illogical.
The penalty is applied on a pro rata basis if a person is insured for 1 to 9 months, but is applied in full if only one of four members is uninsured?
The tax penalty is not subject to normal collection tactics, such as filing a tax lien. However, it is still a debt and other entities can inquire about your tax debts and get verification from the IRS. It can be found when you are applying for a mortgage, escrow, getting a state tax refund, bankruptcy, or at time of estate, as well as a Federal tax refund. It will also come out of tax credits, such as unearned income credit, solar energy tax credits, adoption credits, or things like the new-homeowner tax credits that were popular a few years ago. Someone might get surprised in the future when they get a subsidized deal, and find they have their IRS debt taken out of it. Lots of people think it is not collectible. That is not true. It is assessable and collectible. The IRS is just limited in collection tactics, and it is not subject to criminal prosecution.
- Thread starter
- #37
- 8,448
FYI... If someone hasn't had 2016 health insurance, purchases a Short Term Health Insurance plan that goes into effect prior to April 1st, they avoid the penalty-tax because (according to IRS guidelines) they've purchased Minimum Essential Coverage before the start of the 4th of month of 2016.
See Q&A #5 and #20 at: https://www.irs.gov/Affordable-Care...he-Individual-Shared-Responsibility-Provision
FYI... If someone hasn't had 2016 health insurance, purchases a Short Term Health Insurance plan that goes into effect prior to April 1st, they avoid the penalty-tax because (according to IRS guidelines) they've purchased Minimum Essential Coverage before the start of the 4th of month of 2016.
See Q&A #5 and #20 at: https://www.irs.gov/Affordable-Care...he-Individual-Shared-Responsibility-Provision
I read this and can not find what you are finding. Those STH plans are not MEC plans.
- 514
I haven't been watching TV much lately too busy but I wonder if this stupid negative "FEE" news is getting publicity.
What a crock of s%$#&*
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My kid just had surgery for broken nose from a baseball. I'm out of pocket nearly $3,500 on my $10000 deductible bcbs granfathered plan for a 20 min surgery with anesthesia.
AND I have to pay my freaking $1060 premium and just 2 years ago I was paying $500 a month
HC reform is total BS BS BS
But I was able to get a surgery when he needed it
What a crock of s%$#&*
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My kid just had surgery for broken nose from a baseball. I'm out of pocket nearly $3,500 on my $10000 deductible bcbs granfathered plan for a 20 min surgery with anesthesia.
AND I have to pay my freaking $1060 premium and just 2 years ago I was paying $500 a month
HC reform is total BS BS BS
But I was able to get a surgery when he needed it
- 1,304
FYI... If someone hasn't had 2016 health insurance, purchases a Short Term Health Insurance plan that goes into effect prior to April 1st, they avoid the penalty-tax because (according to IRS guidelines) they've purchased Minimum Essential Coverage before the start of the 4th of month of 2016.
See Q&A #5 and #20 at: https://www.irs.gov/Affordable-Care...he-Individual-Shared-Responsibility-Provision
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AllenChicago
You're generally a good source of data. Was your account hacked?
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