Affordable Care Act Tax Provisions for Individuals & Families

IRS.gov - The Affordable Care Act, or health care law, contains health insurance coverage and financial assistance options for individuals and families. The IRS administers the tax provisions included in the law. Visit HealthCare.gov for more information on coverage options and financial assistance.

What do I need to know about the health care law?

The Individual Shared Responsibility Provision requires you and each member of your family to have qualifying health insurance (called minimum essential coverage), have an exemption, or make a shared responsibility payment when you file your federal income tax return. If you get your insurance coverage through the Health Insurance Marketplace, you may be eligible for a Premium Tax Credit. Filing electronically is the easiest way to file a complete and accurate tax return. 

Coverage  Credits Payments ·        If you are like most people, you probably already have qualifying health care coverage and don’t need to do anything more than continue your insurance. ·        If you don’t have or maintain coverage, you will have to get an exemption or make a payment with your federal income tax return. ·        If you don’t have coverage, you may be able to get it through the Health Insurance Marketplace. For more information about the marketplace, visit      HealthCare.gov    ·        If you get coverage through the health insurance marketplace you may be eligible for the Premium Tax Credit (PTC). ·        The premium tax credit can be paid in advance to your insurance company or to you when you file your federal income tax return. Find out more about the option to get it now or get it later. For more information, see Publication 5120. ·        If you receive advance credit payments, you need to report changes in circumstances that will affect the credit to the Marketplace as they happen. For more information, see Publication 5152.  ·        If you don’t have coverage or qualify for an exemption you may have to make anIndividual Shared Responsibility payment when you file your income tax return. ·        For 2014, generally, the payment amount is the greater of 1% of your household income above your filing threshold or $95 per adult ($47.50 per child) limited to a family maximum of $285.   ·        You will report your coverage, exemption or payment on your federal income tax return. For more information, see questions #25 and #26.

Tax Scams/Consumer Alerts - IRS Impersonation Telephone Scam

IRS.gov - An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling. 

Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.

Or, victims may be told they have a refund due to try to trick them into sharing private information. 

If the phone isn't answered, the scammers often leave an “urgent” callback request.

Note that the IRS will never: 1) call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill; 2) demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe; 3) require you to use a specific payment method for your taxes, such as a prepaid debit card; 4) ask for credit or debit card numbers over the phone; or 5) threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

For more details on this ongoing scam see:

Six IRS Tips for Year-End Gifts to Charity

 Many people give to charity each year during the holiday season. Remember, if you want to claim a tax deduction for your gifts, you must itemize your deductions. There are several tax rules that you should know about before you give. Here are six tips from the IRS that you should keep in mind:

1. Qualified charities. You can only deduct gifts you give to qualified charities. Use the IRS Select Check tool to see if the group you give to is qualified. Remember that you can deduct donations you give to churches, synagogues, temples, mosques and government agencies. This is true even if Select Check does not list them in its database.

In 2015, Various Tax Benefits Increase Due to Inflation Adjustments

WASHINGTON — For tax year 2015, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments.
The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts -

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Are you looking for a fun, optimistic work environment? Flexible Hours? Extra Cash? Do you want to learn how to prepare income tax returns? If you answered YES to these questions we have a great opportunity for you! We are excited to announce that our office is now seeking career- minded candidates for Tax Preparers. With multiple locations in the Metro-Detroit area, we have several openings to fill. Experience is not necessary, we will train. Become a member of our dynamic team of professionals.

Job Title: Income Tax Preparer

Location: Multiple locations within Metro Detroit MI

Benefits: No

Education: High School

Shift: Monday – Sunday

Hours/Week: 20-40

Contractual: 01/02/2015-04/17/2015

Work Hours: Work to be scheduled Monday through Sundays with specific hours to be determined by office needs. Availability must include working evenings, weekends and multiple locations.

Scope: Responsible of providing quality services and preparing tax returns at assigned tax sites for eligible taxpayers and uphold the highest of ethical standards.

Preferred Skills:

• High School Diploma or equivalent AND/OR 1 year experience in tax preparation and working with the public.
• Obtain the IRS Tax Preparer Certification.
• Complete all REQUIRED training through the IRS & in office course
• Ability to use database and spreadsheet software (Excel) in a Windows and Goggle environment.
• Ability to use office equipment including a computer, printer, scanner copy machine, and fax machine.
• Ability to empathize and communicate with those persons facing economic, social, health, age, and educational barriers in a diverse community.
• Ability to use sound judgment and initiative to analyze and resolve problems; and work independently with minimum of supervision.
• Ability to collect data as directed by supervisor.
• Ability to carry equipment and material to various tax sites.
• Ability to organize a variety of simultaneous activities with attention to detail and timeliness.
• Ability to carry out oral and written instructions and work with a minimum of supervision.
• Ability to communicate effectively both orally and in written form.
• Ability to empathize and communicate with those persons facing barriers.
• Good interpersonal and professional skills including but not limited to professional appearance, tact, punctuality, communication, and dependability.

Filing Season 2014 Begins with More Returns Filed

IR-2014-15, Feb. 14, 2014

WASHINGTON — The IRS today announced that tax filings in 2014 have outpaced filings for the same time last year. As of Feb. 7, the IRS received 27.3 million returns, up 2.5 percent compared to the same time last year. Electronically filed returns account for almost 96 percent of those filed so far this year.

Taxpayers, either through tax preparers or from their home computers, have e-filed more than 26 million returns so far this year, up almost 4 percent compared to the same time last year. As of Feb. 7, taxpayers have filed more than 13 million returns from home computers, an increase of 14.7 percent compared to the same period last year.

Refunds are up for 2014, with almost 19.5 million issued this year, an increase of more than 18 percent compared to the same time last year. The average refund as of Feb. 7 is $3,317, up 4.6 percent compared to the same time last year. (Refund averages generally have higher dollar values early in the filing season than later in the year.)

Most refunds are directly deposited into taxpayer accounts; just over 87 percent of all refunds issued were directly deposited as of Feb. 7. 2014.

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Watch Out for Tax Scams as Filing Season Opening Nears

 IR-2014-5, Jan. 23, 2014

WASHINGTON — With the start of the 2014 tax season approaching on Jan. 31, the Internal Revenue Service urged taxpayers to be aware that tax-related scams using the IRS name proliferate during this time of year.

Tax scams can take many forms, with perpetrators posing as the IRS in everything from e-mail refund schemes to phone impersonators. The IRS warned taxpayers to be vigilant of any unexpected communication that is purportedly from the IRS at the start of tax season.

The IRS encourages taxpayers to be on the lookout for phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for personal identification numbers (PINs), passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, forward the e-mail tophishing@irs.gov.

Refund Offsets for Unpaid Child Support, Certain Federal and State Debts & Unemployment Compensation Debts

Source: IRS.gov 

Page Last Reviewed or Updated: December 31, 2013

The Department of Treasury's Bureau of Fiscal Service (BFS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program (TOP). Through this program, your refund or overpayment may be reduced by BFS and offset to pay:

• Past-due child support;
• Federal agency non-tax debts;
• State income tax obligations; or
• Certain unemployment compensation debts owed to a state. (Generally, these are debts for (1) compensation that was paid due to fraud, or (2) for contributions owing to a state fund that were not paid due to fraud).

You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset. You may call BFS' TOP call center at the number below for an agency address and phone number. If your debt was submitted for offset, BFS will take as much of your refund as is needed to pay off the debt and send it to the agency you owe. Any portion of your refund remaining after offset will be issued in a check to you or direct deposited for you.

BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund.