The only constant especially in the tax code is change. The IRS “new years resolution” is to mix it up as usual and the small details are the things that turn a simple job into a time consuming mess. Missed small details often eat up time and kills not just profitability but also makes the “Tax Office Owner” look unprepared or uninformed which won’t help convert tax clients to financial planning clients.
The ACA tax rules that where passed in 2010 to phase in things over time so the rules are a “time released” set of small changes that are easy to “not know.”
In 2016 any tax payer has the possibility they will receive one of three different forms from the ACA rules, 1095-A, 1095-B or 1095-C.
1095-A will be issued by January 31st of 2016 to everyone whom purchased Insurance from the “Marketplace” including everyone whom received tax credits against premiums.
1095-B will or appropriate substitute can come from the individuals health insurance company and report premiums paid, and months they are covered. (this is new this year!)
1095-C would be from the tax payers employer if health insurance was provided if the employer has over 50 employees.
To further “Tax” the Tax preparer, any child of a tax payer that receives these forms needs to provide a copy of that (their) child’s return for their parent to give to you as that income needs to be included in the “Total Household Income” and can change the tax due for the parent.
Tax Office Owners..it’s the second information requests that kill time and profitability!
Ask about 1095-A, B and C forms, understand based on the tax intake answers what form the client should potentially have and if they have kids that already did their own returns on, often on a free site or Turbo Tax and get all the details to help your prepares calculate ACA credits all in one go and not a slow stream of details dribbled in over a long period of time!
You`ll thank yourself for a better bottom line in May of 2016!
You`re Welcome,
The Tax “What-if” Dr;-)