Consumers are applying and enrolling in quality, affordable health coverage every day using HealthCare.gov and State-based Marketplaces around the country. More than 3 million have enrolled so far, and we hope millions more will do so by March 31, the end of open enrollment.
From Saturday February 15, 2014 at 3:00PM until Tuesday, February 18, 2014 at 5:00AM EST, the Social Security Administration will conduct required, regularly scheduled systems maintenance activities over the three day weekend. During this period, verification of Social Security Numbers and other related data via the Data Services Hub will be unavailable. All other services of the Hub will be functioning as normal.
What this means for you:
If you have already completed your application and know what you qualify for: This doesn’t affect you — you can continue shopping and pick a plan to finish your enrollment.
If you want coverage effective March 1, 2014: You generally need to sign up by February 15. But, because of the maintenance window, you won’t be able to find out what you qualify for if you apply after 3pm that day. If you aren’t able to complete your enrollment online by February 15, call us at 1-800-318-2596 starting on February 18 to request coverage beginning on March 1. We will work with you to get you covered.
If you want coverage with a later effective date: You can complete your application during this time but won’t be able to find out what you qualify for during the maintenance period. When you complete your application, you’ll need to save it and return to HealthCare.gov on or after February 18 to find out what you qualify for, pick a plan, and complete your enrollment.
Remember, you have until March 31 to sign up for new coverage during this year’s open enrollment period.
Back on December 31 our post on What You Need to Know about NFP 501(c)(4) organizations outlined the changes, including a new definition in 501(c)(4) social welfare organizations.
Beginning January 1, 2014 the Government Code relating to campaign activity was amended to add reporting requirements for “reporting nonprofit organizations” that engage in campaign activity.
Government Code Section 54964.6 was added to require reporting nonprofit organizations – that engage in political activity – of specific amounts to:
Want to know why it is a good idea to have an Enrolled Agent (EA) as your professional tax preparer? They are “America’s Tax Experts®!” An EA can explain, in easy-to-understand language, how the new tax code will affect you and your taxes today, and help you plan for the future, The IRS is the *enforcement arm* for the Affordable Care Act Tax collection, and the laws and reporting requirements are changing almost daily. You want someone who is looking out for you and your best interest (no pun intended). Continue reading
Whatever the name, taxes can be painful and the new tax is known by a few: the Affordable Care Act tax, the Obamacare tax, the Net Investment Income Tax (NIIT), or Medicare Tax. Most media (and even the President) is using the name “Obamacare Tax”, so we will use that name for this writing. For a full Q&A on the new tax, please see our Q&A on NIIT aka Obamacare Tax.
This is a tax on UNEARNED INCOME. Unearned income is defined as income derived from sources other than employment, such as interest and dividends from investments, or from rental property (source: investorwords.com). The types of income that will be affected by the new Obamacare tax are. Continue reading
The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2, Wage and Tax Statement, in Box 12, using Code DD. Many employers are eligible for transition relief for tax-year 2012 and beyond, until the IRS issues final guidance for this reporting requirement.
The amount reported does not affect tax liability, as the value of the employer excludable contribution to health coverage continues to be excludable from an employee’s income, and it is not taxable. This reporting is for informational purposes only, to show employees the value of their health care benefits.
More information about the reporting can be found on Form W-2 Reporting of Employer-Sponsored Health Coverage.
Image Credit: ClipArt
This credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers.
The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. On Aug. 23, 2013, the Department of Treasury and the IRS issued proposed regulations which include information on the transition of eligibility for the credit and requiring the purchase of insurance coverage through an Exchange. Additionally, IRS Notice 2014-06 provides transition relief for employers in certain counties in Washington and Wisconsin with no SHOP coverage available. Learn more by browsing our page on the Small Business Health Care Tax Credit for Small Employers.
The budget deal that Congress and President Obama struck at the beginning of the year to avoid the fiscal cliff resulted in seven tax increases. If you throw in the six tax hikes that are part of Obamacare, that means there are 13 new taxes that may have hit you in 2013.
1.) The biggest potential taxes for wage earners include: Continue reading
Recently, the IRS updated this ruling, and we feel even stronger now that for the vast majority of our child care provider clients this rule is not in their favor and we will not be using it. To read more, see original post Safe Harbor Rule Does Not Favor Child Care Providers.
IR-2013-96, Dec. 9, 2013
WASHINGTON ― The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2014. The rates will be:
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during Oct. 2013 to take effect Nov. 1, 2013, based on daily compounding.
Revenue Ruling 2013-25 announcing the quarterly rates will be published in Internal Revenue Bulletin 2013-52, dated Dec. 23, 2013.
If you had a loan modified, or lost a property in foreclosure or short sale in 2013, I will need to have all the details. You can’t put behind you until we deal with the tax issues.
For instance, you might have income from cancellation of part of the mortgage. Look for Forms 1099-A and/or 1099-C in the mail. I must see these.
What I also need from you are all the details surrounding what happened. I need the history of all the loans associated with the property. It will help to see mortgage statements. Many times these cases involve more than simply tax law, so please be as thorough as possible.
If you have any questions – don’t hesitate to call. The number is 619-589-8680.
In our last “tax move” post, we suggested taxpayers look at all the options they have for lowering their tax bill due in 2014. Here are some more possibilities:
January house payment - Prepaying your mortgage will give you 12 months of deductible interest. The same for a vacation home. Continue reading
If you paid someone to care for your child, spouse, or dependent last year, you may be able to claim the Child and Dependent Care Credit on your federal income tax return.
Below are 10 things the IRS wants you to know about claiming a credit for child and dependent care expenses. Continue reading
December 31 is approaching quickly – and there are some things you can do to lower your tax bill. We encourage our clients to come in for a review, especially if there are life-situation changes. Did they marry or divorce? Is there are new child? Is there unscheduled income, or benefits. We want to look at that before the close of the year.
As part of our updates on the laws that are changing, we are sharing valuable articles for your convenience.
Want renters you know, trust, like and just happen to be related? No problem. In fact, it is actually a pretty good idea.
According to the Bradford Tax Institute, renting is still a business agreement – even if your tenant is your college-age child or your retired in-laws. As with every business agreement, this rental requires a clear understanding of what is and isn’t permitted by law. So set down the ground rules, then you can relax.
Here’s a good tip to remember when renting to relatives (it will help you escape the rental triple whammy): Charge a well-documented and market-supported fair rent to your relatives.
That way, your rental property will not get misconstrued as a second home.
Here are a few ways to prove the rent you charge is fair:
Source: Tax Reduction Letter.
April 15 isn’t that far off, and if you haven’t taken the time to review your taxes, you may want to.
US News reports on several tax provisions that are scheduled to expire at the end of this year, and we want you to know about these tax breaks before they disappear.
From teacher’s expenses, to private mortgage insurance and remodeling your home for energy efficient appliances, this list gives you gives you something to think about.
1. When do changes to the itemized deduction for medical expenses take effect?
The rules are changing if you plan to itemize medical deductions on your 2013 federal tax return that you will file in 2014. The change will not affect income tax returns for the 2012 taxable year that will be filed in 2013. Continue reading