Notes from IRS webinar on Affordable Care Act implementation tax issues

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Webinar , September 17, 2014, 2 PM eastern time.

The presentation handout is at http://www.visualwebcaster.com/files/100208/SBSE%20ACA%20Webinar%20PPT%20Final_pdf_version_blk_wht.pdf

Small businesses

I had not heard previously that the small business credit for nonprofits was limited to the amount of their wage tax, which for a small company may be less than 35% of their health insurance costs.

Q&A was led by Richard G. Furlong

See 1040 draft form for the new lines related to health insurance

Furlong emphasized that the federal and state exchanges as opposed to private exchanges, seemingly to imply that this does not apply to insurance purchased on private insurance exchanges. That’s not right, is it? Why would IRS be making this distinction? What about the millions who private exchanges?

Line 61 “healthcare individual responsibility”. There is a full year coverage check box. If they qualify for an exemption, Form 8965 is required.

  • Form 8962 is calculation of premium tax credit instructions are not yet published.
  • Form 8965 exemption instructions are not yet out but will be out very soon.
  • 1095A – from health insurance plan

Furlong said “smaller population that qualify for premium tax credits”? why is this smaller?

I understand 4 million (10% of 40 million) will be subject to the individual premium penalty whereas more than 4 million are receiving a premium tax credit.

about 8 million actually enrolled through individual exchanges and should receive a Form 1065A

– tax preparers should make inquiries if this is not provided by the client.

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