The following blog post provides critical insights into the changes made to 1040 Individual Tax Forms due to the Affordable Care Act from SC&H Group’s Personal Income Tax services.
As we approach the 2014 tax filing season, there are a few changes to the Form 1040, as well as new forms that will need to be completed and attached. These changes are a result of the individual tax mandate of the Affordable Care Act (ACA).
2014 is the first year in which individuals must specify whether or not they have health care coverage, qualify for an exemption, or must make a shared responsibility payment as outlined in the ACA.
A majority of taxpayers have what is deemed to be “qualifying health care coverage” under the Act and will only need to check a box on their return indicating so. Others may have a bit more to consider.
For Individual Responsibility, there are changes to qualifying coverage, Exemption from Requirement, and Shared Responsibility Payment.
In addition there will be a premium tax credit, which is an advanceable, refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace (Exchange) beginning in 2014.
To find out more details on the 1040 Independent Tax Form and the Affordable Care Act changes mentioned above, please read this exclusive white paper from SC&H Group here.
In addition, you can listen to the following podcast, where Jim Wilhelm, a Director at SC&H Group, shares insights into the Tax Increase Prevention Act of 2014 (HR 5771), which extends the “tax extenders” retroactively for one year.