kcjenkins Posted August 16, 2013 Report Share Posted August 16, 2013 http://www.gpo.gov/fdsys/pkg/FR-2013-08-14/html/2013-19728.htm The final regulations mostly adhere to the regulations proposed by the IRS last year, except that it added Social Security benefits to the list of items that can be disclosed to the Department of Health and Human Services in order to help enable the health insurance exchanges determine a taxpayer’s modified adjusted gross income. If the IRS provides HHS with the amount of Social Security benefits included in gross income under Section 86, an exchange or state agency will be generally able to determine the amount of Social Security benefits not included in gross income under Section 86, the IRS noted. This amount is one of the components of an individual’s MAGI. Eligibility for the premium tax credit, and advance payments of the credit, are based on the household income of the applicant, which is the sum of the MAGI of those individuals who comprise the household. As a result, providing the amount of Social Security benefits included in gross income, along with other items contained in the regulations, will help an exchange determine whether a taxpayer is eligible for the premium tax credit under Section 36B or cost-sharing reductions under Section 1402 of the Affordable Care Act, and the amount of the credit or reductions. The other major change from the regulations proposed last year is to delete the reference to adoption taxpayer information numbers, or ATINs, from the list of identification numbers to be verified, because the Social Security Administration cannot verify them. Subsequent to the publication of the proposed regulations, the IRS recognized that requests relating to ATINs would not be received because individuals’ identification numbers would first be verified against SSA records. But since the SSA has no records of ATINs, the numbers cannot be verified and HHS will not request return information for individuals using ATINs. While the income of an individual with an ATIN may be relevant for determining household income and, therefore, eligibility for a health insurance affordability program, a health insurance exchange or state agency will instead need to use alternate verification procedures. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 16, 2013 Report Share Posted August 16, 2013 What is a ATIN? Never heard of that before. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted August 16, 2013 Author Report Share Posted August 16, 2013 http://www.irs.gov/Individuals/Adoption-Taxpayer-Identification-Number Q.1. What is an ATIN? A.1. An ATIN is an Adoption Taxpayer Identification Number issued by the Internal Revenue Service as a temporary taxpayer identification number for the child in a domestic adoption where the adopting taxpayers do not have and/or are unable to obtain the child's Social Security Number (SSN). The ATIN is to be used by the adopting taxpayers on their Federal Income Tax return to identify the child while final domestic adoption is pending. Q.2. Who needs an ATIN? A.2. If you are in the process of adopting a child and are able to claim the child as your dependent or are able to claim a child care credit, you may need an ATIN for your adoptive child. Q.3. Why do I need an ATIN? A.3. Recent tax law changes require that when you list a person's name on your federal income tax return, you must provide a valid identifying number for that person. During the adoption process, you may not have been able to obtain an existing or a new Social Security Number (SSN) for the child who may already have been placed in your home. If you are eligible to claim the child as your dependent, and you don't have the child's SSN, then you will need to request an ATIN in order to claim the child as a dependent and ( if eligible) to claim the child care credit. Q.4. How do I know if I should apply for an ATIN? A.4. You should apply for an ATIN only if you are in the process of adopting a child and you meet all of the following qualifications: The child is legally placed in your home for legal adoption by an authorized placement agency. The adoption is a domestic adoption OR the adoption is a foreign adoption and the child/children have a Permanent Resident Alien Card or Certificate of Citizenship. You cannot obtain the child's existing SSN even though you have made a reasonable attempt to obtain it from the birth parents, the placement agency, and other persons. You cannot obtain an SSN for the child from the SSA for any reason. (For example, the adoption is not final). You are eligible to claim the child as a dependent on your tax return. Q.6. Can I get an ATIN if I am adopting a child from another country? A.6. You may apply for an ATIN for your prospective adoptive child only if you are in the process of adoption and meet all of the following qualifications: The child is legally placed in your home for adoption by an authorized placement agency. The adoption is a domestic adoption OR the adoption is a foreign adoption and the child/children have a permanent resident alien card or certification of citizenship. You cannot obtain the child's existing SSN even though you have made a reasonable attempt to obtain it from the birth parents, the placement agency, and other persons. You cannot obtain an SSN for the child from the SSA for any reason. (For example, the adoption is not final). You are eligible to claim the child as a dependent on your tax return. Q.7. I now know that I meet the requirements to apply for an ATIN. What form do I use to apply for an ATIN? A.7. The Form W-7A, Application for Taxpayer Identification Number for Pending Adoptions, is used by qualifying taxpayers to obtain an ATIN. You may also get a copy of Form W-7A at an IRS walk-in office or by calling 1-800-829-3676. Q.8. What do I need to complete the Form W-7A? A.8. In general you need to know the child's name, the birth information, and the placement agency. This information is typically found in the placement documentation. In addition, this placement documentation must be attached to and submitted with the W-7A. The Form W-7A has more specific and detailed instructions. You may send the Form W-7A and the necessary documentation to the address listed below or it can be dropped off at an IRS walk-in office site. The walk-in office will mail the information for you. Internal Revenue Service Austin Service Center ATIN Unit P.O. Box 934 Austin, TX 78767 It continues, but that covers most of the common questions. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted August 16, 2013 Report Share Posted August 16, 2013 Ok. I have done a dozen or so adoption credits over the years but never ran into this ATIN. Must not be a common occurance. 2011 did a couple that adopted 2 girls (sisters) from China and they had their SS# by the time it came to file the tax return. Quote Link to comment Share on other sites More sharing options...
jainen Posted August 16, 2013 Report Share Posted August 16, 2013 >>help an exchange determine whether a taxpayer is eligible for the premium tax credit<< All right--that's too much even for my communist brain. Why does my insurance company have to know what I claim on my tax return? Only thing I can think of is to figure out the max I can afford in co-pays. Now, if it was t'other way around it would make sense. The IRS could look at my medical records to see if my deductions were really necessary. 1 Quote Link to comment Share on other sites More sharing options...
TheFinanceWriter Posted August 19, 2013 Report Share Posted August 19, 2013 (edited) >>help an exchange determine whether a taxpayer is eligible for the premium tax credit<< All right--that's too much even for my communist brain. Why does my insurance company have to know what I claim on my tax return? Only thing I can think of is to figure out the max I can afford in co-pays. Now, if it was t'other way around it would make sense. The IRS could look at my medical records to see if my deductions were really necessary. The insurance exchanges can determine the amount of premium reduction when provided with the taxpayer modified adjusted gross income. Otherwise, the taxpayer may pay the full premium and claim the allowed reduction as a tax credit. I found a good course on this subject at Interestingly, MAGI for 2012 is used to determine the premium reduction for 2014. Edited August 22, 2013 by jklcpa deleted advertising link Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 19, 2013 Report Share Posted August 19, 2013 Brian (FinanceWriter), This forum is for tax preparers only, used to be for only those that used ATX but some of us have moved on to other software. Your profile interests says "For the tax professionals I train and advise..." and I've seen your site and blog. Also, your former and current siggie line contain an advertising link, and 3 of the 6 posts you've made include that same link to the educational materials site. Several of your posts almost seem canned as well. This is not the venue for you to use for free advertising, and we don't allow advertising on this forum. 2 Quote Link to comment Share on other sites More sharing options...
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