easytax

I disagree --- according to Pub 17 page 20 he IS married as there are no exceptions other than stated, except possibly for HOH as stated and he (if I understood) does not meet HOH for himself. Unmarried persons. You are considered un-married for the whole year if, on the last day of your tax year, you are unmarried or legally sep-arated from your spouse under a divorce or separate maintenance decree. State law gov-erns whether you are married or legally separa-ted under a divorce or separate maintenance decree.

Yardley, Yes MFS would be his only option since she is not filing with him. Janitor, under the STRICK rule as Yardley stated above, she may be HOH --- my question is (and this is the only non-HOH point I can "guess at") - reside and/or lived in separate residence --- and there is no way I can put this delicately ------ WHERE were the nuptials???, how long did they spend together, etc., etc. and would/could the IRS deem that time, etc. as residing or "living" together? Inquiring minds and so on --- Please share the end result.

The ending comment brings up a question --- KAREN LEE -- you mentioned a 1095-A would be received; is this from the client or just a possibility? As stated below, Medicaid MAY NOT be issuing 1095-A's for 2014, thus no 8962 may be needed to reconcile AND daughter and child were covered (Medicaid) so box 61 will be checked as you stated. If this is the case and (I misunderstood the question, thus my answer before) and your question is strictly about daughter and her child's insurance, they will need to contact Medicaid and ask about "requirements" for household income (whether parents money enters in or just daughter and her child's income counts) to determine if Medicaid will cover. Most states will allow child coverage even with high dollar households but I do not know for sure in your state and know nothing on "daughters" Medicaid requirement. I have had some families NOT take otherwise "allowed" relatives for tax purposes, because when doing so, the full family income was factored into the state benefit allowances and a lot was lost (to the determent of the relative), so the family gave up the "tax" benefit in favor of the relative having better program availability and thus better overall cared for. Following are two answers from "other board" and how I stated question: ==== Taxpayer and Spouse had all year coverage through Taxpayer employer. Spouse's daughter and granddaughter live with taxpayer and spouse. Daughter and granddaughter had full year coverage through the exchange at zero dollars (medicaid). Daughter and granddaughter lived with them all year. Tax family all had coverage all year. Check box 61. Use daughter and granddaughter as dependents. No more to be done however a 1095-A will be issued for daughter and granddaughter. Daughter has no filing requirement. EIC not an issue. Will taxpayer's income affect healthcare benefits for daughter later on? Would you not have to reconcile using the 8692 form whether they receive PTC or not (as income may be looked at in the Market Place)? If they are dependents of taxpayer, would not the household income come into play for the Market Place? I do not know your Medicaid rules as to who qualifies and such and what incomes can/should be used for the Medicaid benefit. Any thoughts or input would be appreciated. ==== I thought on this one for a while. You will not get an easy answer here as Medicaid is state specific, and you would need to know how they calculated for medicaid and what the income limitations for that state. I would start with last years return and see if the were dependents on the return for 2013 or 2012, and then go from there. If the parents claimed them and they still received medicaid then the parents income was not a factor in determining benefits. I hoped that this helped. BTW, medicaid usually has a 3-5 yr look back when determining benefits. === My understanding is that the 1095-A will only be issued if coverage is purchased through the Marketplace. I don't believe Medicaid recipients will receive any 1095 this year. Next year I believe they will receive 1095-B. ==

You BOTH have it RIGHT or at least half/right in one case. Just shows that a person can be so good and right AND still be wrong -- sometime Green Bay first // Steelers next and Cow---something -- NEVER. I am far from the "perfect" fan but never understood those Dallas folks (and some grandkids are ones too). But then, only one perfect "fan" exists and he has not come back (yet) -- still here helping all (when they ask) but not "officially back" till it is time.

Additionally --- if the IRS was allowed to do things in a sensible way --- receive data from employers, etc. up to end of January or February --- with the employees receiving there data by say mid-March or April with tax filings from "we the people" April/May through June or July so everything could be matched --- there would be a LOT LESS SCAMING from all and thusly, less money lost. Of course also have Congress mandated to have all changes for tax issues done and TOTALLY decided by the previous June --OR nothing takes effect until the following June (which means the following tax year too). Of course, common sense as mentioned by you with the PTIN system and the above seems to be NOT AVAILABLE to our elected leaders (NOT Political, as both parties seem to be at fault). By the way --- from my law enforcement days (applies to POLITICIANS too) -- there is profit in confusion!

Kirstin at ATX does GREAT and quick work. As Maxwell Smart (of "Control") friend to "99" says --- missed my editing time window on previous post by ====this=== much. Anyway, she reminded me that updates and form "enhancements" are two separate things. The 8965 is being "enhanced" to add the worksheets - but with no release date --- (my comment) -- could be today might be next week???

HV Ken, Just double checked and NO the worksheets are NOT in current ATX 14.4v. I went over to the ATX board and have asked as if memory serves (and that is big IF sometime) they had discussed providing the worksheets in the 14.4 update that happened this past Thursday. If they answer, I will share. Right now the only worksheets outside the HHS site I can find are in the instructions of the 8965 form (pages 10 & 11).

If a dependent then the return for them is silent for ACA (no check box and no other form). If the person was filing as themselves but only because of requesting refund, then you would file the 8965 marking the probably the two boxes about filing because of under threshold and hardship, etc.

And you thought the government did NOT care about us ---- without them, where would we be????? Sorry, almost forgot the /s

Was Medicaid through the exchange or do they just qualify for Medicaid? If 1095-A, would you not have to reconcile using the 8692 form whether they receive PTC or not (as income may be looked at in the Market Place)? If they are dependents of taxpayer, would not the household income come into play for the Market Place? I do not know your Medicaid rules as to who qualifies and such and what incomes can/should be used for the Medicaid benefit. This is an excellent question as ACA and Medicaid rules for use might be different. Hope there is much more input from forum members and if any government regulations, etc. are known.

For those type clients you are correct for 2014. For later years, there will be (think IRS/government thought patterns) requirements to prove health insurance. Therefore these type clients need educated that additional forms will be required and proof for those that do not receive those forms (think - less than 100 or 50 employee businesses) will be needed for some sort of proof (to be announced - probably at last minute too). ACA for many, is not big deal if you have a handle on what is/is not required and which forms do what for 2014 ---- as long as your clients fall into that segment. However if the client does not have full year health insurance or receives it from the Market Place, then it becomes much more interesting AND MUCH of the HYPE is called for. The two sizeable groups you mention are good for 2014 but can be cumbersome and will shrink going forward to 2015 and beyond. BUT --- remember --- we are STRONG --- that is why we are ---- PRACTITIONERS ! We can handle anything (maybe even 3115's) that the government throws at us.

Thank you RitaB, I stole your pic --- it will help get some attention for some doc's I am waiting for.

How many kids? Who is taking dependency exemption? We are assuming your client worked, paid for cost of own place, and needed the daycare and that the child was under required age, etc.. Basically if they were married then the money was paid by both (jointly) regardless of who wrote check (as long as they agree here - which you say they do). If just one kid the most you can use anyway is $3,000 and your client paid that alone. Also remember to get the 8332 if your client is taking dependency and is not the custodial parent. Additionally most credits, exemptions can not be "split" -- usually all or none. Divorces can be agreeable now BUT always need to have "the paper work" in place in case someone gets upset later.

Jack, Just curious as to why you are "policing" the insurance as it is not required or even mentioned in the "Best Practices"? Even with the insurance cards does not mean they had it for all year and if you are going to "trust" them for an answer about all year coverage -- then why not trust them that they have/had coverage? Just curious as to if I am missing something, I use you as a source, so I am a bit confused here. This, especially since you believe and have stated that for 2014 no proof is possible (as far as government is concerned). Thanks. Also, the answer about active and retired, etc. is spot on --- as I have kids and grandkids that are both active and retired, etc. and have asked them these same questions.

No --- line 61 is for ALL on return --- if ALL did not have coverage for all of 2014, then DO NOT check, open 8965 and complete as described.

Is this what you are looking for? (page 31 Pub-17) Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Al-though the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). The exemption for the child. The child tax credit. Head of household filing status. The credit for child and dependent care expenses. The exclusion from income for dependent care benefits. The earned income credit. The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to divide these benefits between you. The other person cannot take any of these tax benefits for a child unless he or she has a different qualify-ing child. Tiebreaker rules. To determine

The yellow to red question was asked: Answer is basically that since IRS allows the submission (e-file) of the return without the check mark, ATX CANNOT enforce it to a red box as red means it cannot be e-filed --- as stated it goes to a "review" state but WILL accept through e-file --- ATX is prevented from enforcing something NOT there - it CAN BE e-filed. Supposedly the "affordability forms" will be added this week (I believe next update is Thursday). This will be along with adding several drop down boxes showing tax payers, etc. (if I understood properly) in the various sections of the two ACA forms. There is also some mention of them adding (automatically when required) the cost of the bronze plan and lowest silver plan where appropriate too.

THANKS Catherine, now I am hungry for one of those marshmallow fluff and peanut butter sandwiches --- originated in Maine.

Here is a reference that states basically --- if caregiver is not in business, and a family member, etc. then NO self-employment tax but still compensation must be reported: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Family-Caregivers-and-Self-Employment-Tax . If doing it as a business, it is a business and all taxes are due. The reference Tom makes is I believe to a Medicaid reimbursement for care givers and can be referenced here: http://www.irs.gov/irb/2014-4_IRB/ar06.html . Please note that the original post (I believe) references that the receipentent would NOT be doing the care but would just be managing, etc. so (not being an attorney - my disclosure) my personal opinion is that the "attorney" was "blowing smoke" and a 1099 would be the proper way to go.

Believe it or not, this is NOT (to me) a POLITICAL comment per say as it pertains to ALL parties -- it is issued (tongue in cheek ) and with the intent of correcting a misperceptions on our "poor" weatherpersons ... (alone) The picture is incorrect as it states only Meteorologist but in fact is true for "Politicians" too. (It does take some of the fun out, when one needs to "explain" rather than just make fun of) - but it is what happens when one is as "anal" as me.

1. 8965 2. 8965 and show exemption(s) with applicable code (maybe code "C") Just making sure you know ITIN is NOT the same as SS#'s (from your question #1). 3. Feb 15 (if I understand the question) is for 2015 insurance --- so even with 2015 insurance, 2014 is still open.

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Would this not be the same as running a business === money comes into your client for management duties; money goes out for payment of care to vendors, etc. Since your client is not a corp. (????) then your client should receive a 1099 and also issue proper forms as required to vendors. Am I missing something?

Just now tried it 1706 hr. 01/23/2015 and it worked. Maybe it is just a glitch for that zip.