Many file their taxes annually through the use of programs like TurboTax. However, taxpayers may find their returns complicated by the Affordable Care Act for 2014. This year, every taxpayer must report to the government whether he or she had health insurance. Those who did not have health insurance for 2014 will be penalized.
If you have not yet signed up for health insurance, it’s important to go ahead and do so. You may be eligible for a tax credit if you have limited income and choose your insurance plan through the Marketplace. This credit is based prospectively on the income that you expect to receive in the coming year. After you complete the required steps to enroll, the government will send you Form 1095 to file with your 2014 tax return. The government will use this information to apply your credit based on the income that you actually earned in 2014. If you earn more than you thought you would, your tax refund may be decreased, or you may owe additional tax.
While some low-income citizens normally abstain from filing a return, it’s important for everyone under 65 to file this year to show compliance and receive your credit.
Be sure to seek professional advice when filing your return this April. Otherwise, you may be leaving money behind or making errors on your return; this year will be different!
If you or your loved ones need assistance with tax planning, consider W.G. Alexander & Associates – while we do not prepare tax returns, we are experienced attorneys who offer a unique blend of asset protection, Elder Law and estate planning. You can also attend our free seminars, learn more through our website at www.wgalaw.com, or call us at (919) 256-7000.
Attorney Bill Alexander discusses these issues and more every Tuesday morning on W.G. Alexander & Associates’ radio program, “Asset Protection Today,” on TalkRadio 850 WPTK (AM). Be sure to listen from 9:00-10:00 AM.