Introduction to the Affordable Care Act

Hi, Dan Bosler here. I am an accountant in Fenton, Michigan, about ten miles south of Flint, Michigan. I am an Enrolled Agent, and Enrolled Agents are people licensed by the Department of Treasury to help people deal with the IRS tax problems. Our company name is Renie Kate Accounting, and we concentrate on bookkeeping, payroll, tax preparation, and solving people’s and business’ tax problems, mainly in Ann Arbor and Flint, Michigan.

In this session I want to introduce you to the tax consequences for you beginning in next spring for the 2014 tax returns you will file because of the Affordable Care Act, nicknamed Obamacare.

First of all, if you have insurance paid all or in part by the company you work for, the only effect on your tax return is a checked box. However, because your tax professional must examine the document proving you have health insurance, expect a little bump in the cost of your tax preparation. After all, it is extra work he or she has to do to comply with the new law.

Yeah, I know. Just what you wanted to hear. Don’t blame the tax professional. We did not pass the law. We just have to implement the reporting required on your tax return.

Secondly, if you had private insurance before the enactment of Obamacare, it is grandfathered in and you do not have to change insurance. You, too, will have to document your insurance coverage and have the box checked on your tax return.

Thirdly, if you have free government issued insurance (Medicare, Medicaid, VA, etc.), you have the same situation.

Fourthly, if you had no insurance for only part or for none of 2014, you will have to pay an additional tax under $8 per adult and $4 per child on your tax return for any month during which you had no insurance coverage of any kind. The maximum is $95/adult and $47.50/child. You may get a 3 month grace period for which you are not charged this additional tax. This additional tax will lower any refund due to you.

Fifthly, if you bought insurance but did not buy it through an Insurance Exchange, or if you are a member of a medical cost-sharing ministry or any other exempt service, you qualify for an exception to the Obamacare law, but it must be documented on your tax return what sort of exemption you qualify for. I anticipate this to take tax professionals longer to document for you, so the additional bump in tax preparation costs will be a little more than in the other circumstances we have discussed.

That is enough for this video bite. I will discuss what is involved for you if you bought insurance through an exchange in another video bite.

Call 1-734-358-6314 for assistance now.

Have you prepared your own tax return in the past, but it sounds too complicated for you now? No matter where you are in the country, because of internet communications, I can help you at rates that are half the national average. Feel free to visit my website: www.danbosler.com, to email me at dan@danbosler.com, or to call my cell (734) 358-6314. We at Renie Kate Accounting will be glad to help you file your tax return accurately and affordably.