ACA

[Christian]

In looking over the draft Form 1040 for 2014 I note that for most of my clients the simple check box for full coverage will cover most of them (whew). For the others lacking coverage one of the specified exemptions will cover them. As for the one or two getting credit assistance through the federal exchange I expect the insurance carrier will forward documents which will enable me to complete their info. Maybe next tax season will not be the nightmare I was afraid might occur.   

[Jack from Ohio]

The only people that will receive anything from their insurance agencies are people that have insurance through one of the exchanges.

[Christian]

That was my reading of it as well Jack. I was only too happy to read your comment.

[Jack from Ohio]

I should have said...  "The only insurance companies REQUIRED to send documentation, are those with clients acquired through the exchanges.  Other insurance companies can, but are not required to until tax year 2015.  Tax year 2015 ALL insurance companies will be required to send documentation to all insurance customers.

[Randall]

I thought you were not eligible for the credit unless you did get the insurance thru the exchange. Not sure though.

[Jack from Ohio]

I thought you were not eligible for the credit unless you did get the insurance thru the exchange. Not sure though.

You are correct.  However, the other questions about "Did you have proper coverage for all of 20XX?" can only be documented with a  form from the Insurance Company.  1095-A

 

The only requirement for the insurance companies to issue 1095-A forms for 2014, are those that provide coverage to clients purchased through the exchanges.  Everyone else is expected to answer the question based on the honor system.

 

2015 ALL insurance companies will be required to issue 1095-A forms to all insured. 

 

In addition, 2015 all employers that provide insurance will be required to give all covered employees Form 1095-C.  This shows how much is paid for insurance coverage by the employer for the employee and how much is paid by the employee through withholding.

[GeneInAlabama]

Will people presently not required to file be required to file then?

[Jack from Ohio]

Will people presently not required to file be required to file then?

If a taxpayer receives a subsidy, they MUST file to reconcile the subsidy. This applies to tax year 2014 and forward,so the answer is yes.

[easytax]

You are correct.  However, the other questions about "Did you have proper coverage for all of 20XX?" can only be documented with a  form from the Insurance Company.  1095-A

 

The only requirement for the insurance companies to issue 1095-A forms for 2014, are those that provide coverage to clients purchased through the exchanges.  Everyone else is expected to answer the question based on the honor system.

 

2015 ALL insurance companies will be required to issue 1095-A forms to all insured. 

 

In addition, 2015 all employers that provide insurance will be required to give all covered employees Form 1095-C.  This shows how much is paid for insurance coverage by the employer for the employee and how much is paid by the employee through withholding.

 

Yes, call me anal ----

 

All are required starting 2015 ---- does that not mean that all tax filers must receive either a 1095-A or 1095-C to properly file their tax forms (filed in 2015 for 2014)? Therefore the employers who are exempt from the ERS until either 2015 or 2016 are only exempt from the penalties BUT STILL need to send the employee/insurance holder one of the 1095 forms, so the tax filers can comply with the requirement?     Therefore all employers (even though exempt from penalties) still need to supply employees with a 1095-C?

 

The tax filers need to know what is occurring in order to give us the proper information to complete their returns. This information (both to protect the filer and us, as practitioner) is required, just like W-2's are required, etc. for employees, etc.                 Am I mis-understanding something -- the IRS (as I know them) are not really big on the honor system when paper work is required and NOT there.

 

I ask this as I am working on my client letter sharing what the client needs to send/bring me so I may properly complete their tax filings. I was going to state that they need to have a 1095-A or 1095-C from their employer (still checking to see if other new forms might be required too) along with their W-2's, and other "normal" information, etc. as in previous years.

 

Thanks in advance.

[Jack from Ohio]

Tax year 2015.

[MAMalody]

Whatever is required would be good to make sure ATX knows so they can include that request on their Tax Organzier.

[BulldogTom]

I love that we have moved from the politics of this law to the mechanics of it.  No matter what our opinion, this is the kinda stuff we need to know for our clients good.

 

Thanks for the discussion.

 

Tom

Hollister, CA

[Jack from Ohio]

The only people that will receive anything from their insurance agencies are people that have insurance through one of the exchanges.

 

I should have said...  "The only insurance companies REQUIRED to send documentation, are those with clients acquired through the exchanges.  Other insurance companies can, but are not required to until tax year 2015.  Tax year 2015 ALL insurance companies will be required to send documentation to all insurance customers.

 

 

You are correct.  However, the other questions about "Did you have proper coverage for all of 20XX?" can only be documented with a  form from the Insurance Company, 1095-A. 

 

The only requirement for the insurance companies to issue 1095-A forms for tax year 2014, are those that provide coverage to clients purchased through the exchanges.  Everyone else is expected to answer the question based on the honor system.

 

Tax year 2015 ALL insurance companies will be required to issue 1095-A forms to all insured. 

 

In addition, in tax year 2015 all employers that provide insurance will be required to give all covered employees Form 1095-C.  This shows how much is paid for insurance coverage by the employer for the employee and how much is paid by the employee through withholding.

I added a few minor words to my posts, underlined and bolded the important dates. 

 

I asked Karen Hoskins in person, if we would be held accountable for clients answers to the question about having qualified coverage for tax year 2014, since this question will determine if the taxpayer owes any "shared responsibility" payments.  Due to the fact that there is no way to document or verify the answers from the taxpayer about this question (except those that received coverage through one of the exchanges), she said that there would be no verification process by the IRS, so there would be no liability on our part for verifying the answer.   

 

Now we all know that all our clients will answer that question truthfully and honestly.