The Importance of Reporting Life Changes in Regard to the (ACA) "#Obamacare"

e-News for Tax Professionals Issue 2014-22 by The IRS: e-News for Tax Professionals Issue 2014-22 05/31/2014


The Affordable Care Act (ACA), touted as ObamaCare, has made drastic changes to our Tax Law. If this were FoxTV, there would be a bunch of misinformation to follow. The only reason I am even speaking of it, is because of how many people they have caused to deny themselves HealthCare and Insurance. Healthcare includes Dental and Eyewear. 

Now many Americans are experiencing the Health, and peace of mind in having Insurance. For some, this is the first time people in the U.S. have had Health Insurance. Many Americans are not able to enjoy the relief of being able to use Preventative Care, be healthier, and lead more productive lives. That is sad. One of the notes of propaganda that was spread like Oleo through the Southern States of North America was that Insurance Rates would go through the roof. It led to direct mis-understanding about the AFFORDABLE part.

Enrolled members should know, this was not meant to be a noose of tax liability to the taxpayer, this ACT was created to make healthcare affordable for all. Mitt Romney worked on the same plan for his own State, and helped write the ACA, as well as many who seem to be trying to destroy it, and the people it represents now.(?)

There are changes that can affect the Premium Tax Credit, many Americans who Enrolled will receive, to help Pay their Premiums. If you get too much, you will owe money at the end of the year, if your circumstances have changed to where it would affect your "enrolled ability to pay, and need," by turning in a CHANGE REPORT (http://www.irs.gov/pub/irs-pdf/p5152.pdf) 

What Changes?

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Premium Tax Credit - Help Purchasing Insurance through the Market Place

For those who declined enrollment, because they heard inflated numbers of premiums they would be responsible to pay should be given relief. They were unable to seek understanding of the ACA (Obamacare), because they were led to believe by their State, Federal Representatives, and GOP entrenched media; untruths which continue today.

I love to play Words of Wonder(TMDisney), but the ad I must watch to play for free, is often a middle aged couple from Arkansas saying things about AHA, that is not true, period. That entrenching of misquotes, and outright lies,  have caused Americans to either refuse, or dread one of the best things that has happened to our country for decades.

Personally, I now have Blue Cross, Blue Shield. My premiums would be almost $200.00 if I had to pay the whole thing, but my portion is very low, and I can afford it. I really am not sure how to use it, I am pretty healthy, and don't intend to become a pharmaceutical lab rat in my last days, so I shouldn't cost the taxpayers much. Most of my working life has been uninsured, or insurance too expensive to use. 
Oh, I am a taxpayer, and my blogs have not hit the big time yet, so I eke by on under $9,000.00 per year. I am lucky to be working in a job I love, it just doesn't pay a living wage. Having insurance, is just that. A net, should we slip from the perilous heights of "highwire fiscal survival", that most of us tip-toe across daily. 

Now, hopefully you have stopped being mad about the Fox crack, it honestly is not about politics, but about taxes. Unfortunately, what is happening in the media, driven by industrialists, is affecting the Tax Law, and not in the favor of the middle class and below. It is my goal to show some true information, and hand the reader resources they can check out for themselves. 

**For real information about the Premium Tax Credit, in English, and Spanish, with YouTube Videos Here is the Link: http://www.irs.gov/uac/The-Premium-Tax-Credit

I think there should be a respite for the many who have been so misinformed. It is hard to believe that people are allowed to get on television, call themselves "representatives," news stations that aren't news at all, merely entertainment. Since this is being done by the very people who were elected to serve THEM, it is my opinion that type of deception should be considered criminal. If I lied, and schemed, to the point of throwing my arm over someone else's Jesus, to cause someone to deny something they were due, I think that it may be a crime. Really.

There is a little respite for those who have had a life changing event, called a "Qualifying Life Event," if they did not enroll during Open Enrollment, they may be eligible to enroll. Here is the link to that page. https://www.healthcare.gov/glossary/qualifying-life-event/

Getting Ready for Tax Time - Tips to Help You Optimize Your Legal Deductions

In less than a week, Congress and the Executive Branch will begin to put the 2008 Tax Year together.

One thing I cannot stress enough is, contact your Senators & Congresspeople regarding the Alternative Minimum Tax (AMT). Last year because so many tax pros got the word out to their clients, and those clients also contacted their Washington representatives, the AMT had a 'bandage' applied, but it wasn't fixed. This year so many other things have the attention of the American Public, this BIG PROBLEM is being ignored. It ain't over until the Fat Lady sings, and the Fat Lady in this case are the Citizens of the U.S. If the AMT is not done away with, it will crush the middle class ($36,000.00 - $195,000.00) We have lost on our Personal Deduction amount this year as well. When you consider all the losses by the middle class in the past 4 years, it is crushing.

Many taxpayers (workers) come to January - April, and want the process to be painless and quick. Sometimes by taking a little time and work, their tax burden can be reduced even by a few dollars.

If you use Jackson Hewitt, they can perform a tax optimization for you for free. They can prepare your taxes "short form" (a regular 1040A with no deductions), and then with your legal and documented deductions, can show you the difference. If you are better off taking itemization's you will pay a bit more for your Preparation Fees, but it may be worth it. It is always worth a look-see.

I. Medical Deductions: If you are insured through an employer, most Insurance is taken out pre-tax. This means instead of getting a tax deduction at the end of the year, your employer and you are given a benefit of a "deduction" off of your total taxed income. This causes many taxpayers to think they are all tapped out on Medical Deductions, and it isn't worth it to consider possible Medical Deductions. This is not always the case.

Remember: You get to count the total dollar amount paid on legitimate medical expenses, (you don't get another deduction on that pre-tax amount) toward your 7.5% required to receive a deduction for Medical Expenses paid.

States: Some States allow Itemization for tax payers who may not be eligible to Itemize on their Federal Return. If you do your own taxes, make sure to include all legal deductions in the body of your Federal Return, so possible legal State deductions will roll down. I use TaxSlayer through IRS Free File. As a tax pro, I highly recommend it.

Your W-2 Should show these amounts in the boxes on 12 or 13, sometimes they don't. If you are Self-Employed, unless you have set up a pre-tax account, you can deduct all unreimbursed, out-of-pocket paid, medical expenses. If you claimed the self-employed health insurance deduction on the 1040 line 29~be careful not to give yourself a double deduction - reduce the amount of premiums paid from the amount on line 29.

• Medical Mileage: for 2008 we lost 1 cent. It is now .19 per Medical Mile. Depending on where you live, those miles can add up. (Some Flex-Plans and Health Savings Accounts, also allow you to claim your mileage throughout the year as well, and if you have elected to do this, you probably won't have reason to file for a Medical Deduction). You can claim forms of Transportation to get Medical Care; Ambulance, Taxi, Plane, or a personal vehicle. Parking and Tolls are included. [Only deduct one time per tax return for the year].
• Prescription medicines or insulin. (if you have a Flex-Plan, or HSA, you have received the 'deduction' pre-tax, you will be counting it toward total medical expenses paid in.)
• X-rays, Labs, Doctor ordered treatments such as whirlpool baths
• Nursing Help - You can include the deduction for Employment taxes paid here. [Again, be careful not to double-dip].
• Hospital Care- Includes Meals, lodging [no pleasure expenses: limit of $50], clinic costs (If the care is critical, and a family member is paying for parking, etc) - Doctor Verified.
• A Portion of Qualified Long-Term Care Services [Pub 502]
• The Supplemental part of Medicare Part B & Premiums for Part D
• Smoking Cessation Program
• Weight Loss to treat Obesity diagnosed by a Dr.
• Medical Treatment for Drug & Alcohol addiction
• Aids - Glasses, Contacts, Hearing Aids, Braces, Crutches, Wheelchairs, Guide Dogs (Including the cost of taking care of the service Animal)
• Laser Eye Surgery or Radial Keratotomy
• Certain Med Expenses paid out of a deceased taxpayers Estate, can be claimed on the deceased taxpayer's final return.

Free Tax Tips: You must have receipts, your books, or other Documentation at the time you sit down with your Tax Pro. This year more than before, tax pros are under the gun to make sure their clients have legit deductions.
Q. What if I haven't kept a record of all Medical Mileage?

A. [Don't dump a load of receipts on your Tax Pro, unless you like paying big bucks. Don't think it is funny to dump a giant box of receipts during an IRS audit, you will not be smiling when it is all said and done].
1. Contact each Medical Provider you had throughout the Year. Ask them for a Print-out of all visits. Put in this request at the first of 2009, because the longer you wait, the more backed up Medical Provider's will get with these type of requests. Because of HIPPA, it is not as quick and easy as it used to be.

2. For each visit, go to Google Maps, Yahoo Maps, an atlas, or any other legit method of finding mileage to and from your home, to your provider. If it is the same one each month, it will be quite simple. If you have had a heartbreak year, it may take you a lot of time and work. From now on, you can keep a log as you go. You can use Excel, Access or several other software programs to keep track of all of your expenses through the year. Even a cheap notebook kept in your vehicle or home office will suffice. If you are Self-Employed, you are in violation if you are not keeping records and books on expenses and payments.

3. Use bank statements that are clearly marked as to the nature and payee of an expense. You can make these part of your records. Keep in mind, during an audit there can be questions about any and all expenditures and receivables included in those statements.

Using your personal vehicle -
A. You need to know the type of car, truck, suv - ie; 2008 Toyota Tundra.
B. You need to know the total price paid [sticker incl financing], or lease amount.
C. You need to know the first date you used this ride for medical purposes (this goes for other vehicle use expenses too)
D. You need to know ALL of the miles put on the vehicle for the Entire Tax Year. (If you are using actual expenses, you must have record of everything claimed.
E. You need to know Business Miles put on the car, truck, suv.
F. You need to know Charitable Miles put on the ride.
G. You need to know Commuting Miles (non-deductible)
H. You need to know the mileage for any other use - vacation, store, mother-in-law...
I. You need to have any amounts that were reimbursed.

Hoping this will help. Although it does put a glazed look in your eyes. :8 - >

My next post will be concerning Charitable Mileage,
Then, Business Mileage. Stay tuned little deer...