DiSabatino CPA Blog

Mike DiSabatino CPA

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Healthcare Reform for Business Owners

Healthcare Reform for Business Owners

Healthcare Reform for Business Owners

As the fall leaves begin to turn, it seems an appropriate time to begin a discussion about the new reporting required by the Affordable Care Act.  We want you to understand what this legislation entails so that you save the appropriate documentation and are prepared for the questions that we will need to ask you.

 

As you are aware, effective January 1, 2014, every citizen and legal resident, unless exempt, is required to have health insurance that provides Minimum Essential Coverage.  Those without Minimum Essential Coverage will be subject to Shared Responsibility payment (a penalty).  Most taxpayers already have the required level of coverage from an employer plan.  If you are uncertain whether your coverage qualifies as Minimum Essential Coverage, or would like to know more about the Shared Responsibility payment, please visit the IRS website:
http://www.irs.gov/pub/irs-pdf/p5156.pdf

Most exemptions are granted by the Health Insurance Marketplace administered by the Department of Health and Human Services; however, a few are determined at tax time.  For information about these exemptions, please visit:
click -> ACA-Individual-Shared-Responsibility-Provision-Exemptions

If you were granted an exemption by the Health Insurance Marketplace, please keep your exemption certificate.  We will need information on this certificate to properly file your return.  

If you obtain your health insurance through the Health Insurance Marketplace or received an Advanced Premium Credit, you will receive a Form 1095-A from the Marketplace before January 31, 2015.  Please keep this document with your other tax records and bring it with you to your tax appointment.  For more information about the Premium Tax Credit, please visit the website:
click -> IRS PUB 

Additionally, we want to caution clients receiving the Advanced Premium Credit.  This credit is based on your estimated income at the time that the credit is issued by the Health Insurance Marketplace.  If you have experienced a major life event (marriage, birth, move, divorce, death, etc.) during the year or your income is greater than estimated, you may be required to repay a portion of this credit.  This may result in a higher 2014 tax bill.  Please contact the Health Insurance Marketplace as soon as possible and discuss the changes with them.  

Important!  2015 Open Enrollment for the Health Insurance Marketplace begins on November 15, 2014 and ends December 15, 2014.   Information on other deadlines that may affect you can be found at:
click -> dates-and-deadlines

Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here.  All rights reserved.

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