Income tax changes due to the Affordable Care Act

Income tax changes due to the Affordable Care Act
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Tony Novak, MBA, MT, Certified Public Accountant
(610) 572-1724  @tonynovak

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January 12, 2014
Contact: Tony Novak (610) 572-1724

Income tax changes for the Affordable Care Act

Federal income tax return forms and software were redesigned this year in response to the implementation of many of the Affordable Care Act’s provisions that took effect in 2014. Most of us will experience the impact of ACA changes for the first time when we file our 2014 income tax returns.

Since most of us (whether we file our own tax returns or hire a tax preparer) use tax preparation software to handle the task, this article summarizes what’s new in most 2014 tax preparation software packages about Affordable Care Act:

1) a new health care tab to the data entry menu with additional drop down menus, screens or tabs to help complete the other required IRS forms

2) a Health Care screen for general health coverage information

3) screen for Form 8962 for taxpayers who qualify for the Premium Tax Credit (PTC)

4) screen for Form 1095A for recording information from the Health Insurance Marketplace Statement

5) screen Form 8965 for reporting exemptions, noting lack of coverage, and calculating insurance affordability.

6) A Health Care Coverage Questionnaire typically serves as an organizer for gathering required information. (A copy is provided to all my clients prior to filing as isavailable online to those who file their own returns).

For income tax preparers, it is important to know what questions to ask to avoid problems and potential penalties in addition to knowing what forms to fill out. There has been a topic of significant professional interest lately and, in fact, we do not know what to expect this tax season.I am responding to the changes with increased service hours this month to answer customer questions about the impact of the Affordable Care Act on taxed either online or via telephone.

For those who plan to prepare their own tax return this year, I recommend‘s state-of-the-art features to keep in complinance with the ACA. There is no software to buy or install and the complete cost of filing online ranges from free to under $40 complete for e-filing of federal, state and localtax returns.

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Have an unresolved tax question or financial concern?
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This Web site is independently owned and operated by Tony Novak operating under the trademarks “Freedom Benefits”, “OnlineAdviser” and “OnlineNavigator”. Opinions expressed are the sole responsibility of the author and do not represent the opinion of any other person, company or entity mentioned. Tony Novak is not a representative, agent, broker, producer or navigator for any securities broker dealer firm, federal or state health insurance marketplace or qualified health plan carrier. Novak is compensated as an accountant, adviser, writer, consultant, marketer, reviewer, endorser, producer, lead generator or referrer to the commercial companies listed on this site or non-governmental commercial insurance exchanges. Information is from sources believed to be reliable but cannot be guaranteed. Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues or a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Novak would be pleased to perform the requisite research and provide you with a detailed, written analysis at your request. Such an engagement would be subject to an engagement letter that would define the scope and limits of the desired consultation services.

Tony Novak  |  P.O. Box 333, Newport NJ 08345  |  141 Jones Street, Bala Cynwyd PA 19004


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