Avoid Tax Refund Remorse
Since tax season started last week, I have had a few clients who were unaware that form 1095-A “Health Insurance Marketplace Statement” itemizes taxpayer insurance coverage reported by healthcare providers for 2014. This form should be mailed to your address of record by the IRS before 1/31/2015.
One client in particular, let’s call him “Bob” (fictitious name), was on a fixed income of pension and social security. Bob completed his filing with me and stated that he had health insurance coverage for all of 2014. I was able to find deductions for Bob that he was not aware of when he completed his own return last year. Bob left my office elated with his scheduled tax refund. Two days later, Bob received Form 1095-A from the IRS. Turns out that Bob allowed his insurance coverage to lapse for two months in 2014. What would have been a $500 refund became a $250 tax bill.
So that no more refund balloons are deflated, I have copied a link to a useful tool:
The Individual Shared Responsibility Calculator
This Individual Shared Responsibility calculator provides information on how much you and your family maybe charged for failure to have an adequate health plan that meets the minimum essential coverage based on IRS standards. The Individual Shared Responsibility fee, or tax will increase gradually over the next three years. After 2016 the amount will be adjusted based on the cost of living. This calculator should be used as an educational tool. Please talk to your tax agent or financial advisors before making any decisions. Ihealthcareupdates.com holds no responsibility for decision made from using this educational tool. This calculator does not provide information with regards to subsidies. Please use our Health Insurance Subsidy Calculator to calculate what your potential subsidy can amount to, through the purchase of health plan on the exchange. How to use this tool Note: To avoid any issues with your calculations. Always hit the reset button before putting in new values. This ensures the old values are not stored in your system cache. The final value provided is for 12 months of no coverage. You will only be responsible for the months you did not have coverage. Divide the final value by 12 to give you the cost for each month you failed to be properly insured.
Copy and Paste The Link Below to Use the Calculator:
More Information Available on My Site: