It's nearly tax time and as individuals prepare to tackle their 2014 tax forms, they are advised to become educated about tax changes that may impact their tax liability. When it comes to filing one's taxes, a couple of things are nearly always certain:
- At some point while attempting to sort out a tax matter, an individual will be thoroughly confused
- He or she will is also likely to end up owing something to Uncle Sam.
In a recent post, we discussed the increased challenges taxpayers who attempt to contact the IRS for help will face this year. While tax professionals should be aware of new tax code changes, for individuals who cannot afford to hire a tax professional or who simply prefer to do their own taxes, new tax changes often pose challenges. This year, there a few notable tax changes related to the Affordable Care Act that, if not followed, could result in an individual taking a financial hit.
The 2014 tax year signals tax changes for all Americans related to the Affordable Care Act. All taxpayers are required to fill out information detailing whether they have an employer-provided or self-purchased plan or purchased health insurance through the federal health care exchange. Taxpayers, who have health insurance through an employer or self-purchased plain who fail to complete this portion of the Form 1040, may face IRS fines of up to $285.
For the estimated six million people who purchased health insurance through the federal health care exchange and received a government subsidy to help defray the costs, additional tax forms must be completed. For example, failure to complete the 8962 Premium Tax Credit form could mean that an individual won't receive a portion of their remaining subsidies.
If you or your tax preparer are unsure about how to handle a serious tax problem and need to involve a tax attorney:
Source: WROC-TV, "3 mistakes to avoid on your 2014 tax return," Feb. 10, 2015
