Open Enrollment Is Almost Over - Don't Let Misinformation Get You in Trouble

This blog post goes out to fellow citizens living under the U.S. Tax Code.

March 31st 2014 - Open Enrollment Ends

Something that I have always appreciated about taxes is that anyone can argue about Democrats and Republicans, greed, sexual orientation, minimum wage, Benghazi and the Keystone Pipeline, but it is tax law changes from year to year that tell the true story of what is going on in Washington D.C.

I love knowing tax law and code changes, because those are historic registers for what each Executive Branch, Judicial Branch and Legislative Branch allowed or made happen during their own tenures in office. There are not many people I know who have followed the tax laws for more than forty years, but all of us can attest to what has occurred and how over the last thirty years, the middle class has been overwhelmed with the burden of our fair and equitable system. 

Just like the Holy Roman Empire (I still hear the repeated phrase of my World History professor; 'It was not Holy, It was not Roman, and it was not an Empire.") America was only a fair and equitable system for a miniscule period of time. As soon as Europeans made landfall in America, there was a systematic program of genocide and the grabbing of all resources by a handful of people.

There have been years that have been good to the Middle Class tax-wise, but since the creation of the Alternative Minimum Tax (I have argued and fussed for its repeal for decades...), the Middle Class has been doomed. It was during that time that Presidents and Congress empowered the rights of Corporate Welfare over that of living breathing human beings. 

The Affordable Care Act termed by everyone as "ObamaCare" was a project/law in the making for quite a few years. Because of all the political wrangling it has turned into a Clown-Car Circus of confusion and misinformation. For the purpose of this blog post, my political opinion is Switzerland. Not political, but what the tax law changes and ACA have to do with U.S. Taxpayers, and the importance of getting good information and assistance before it is too late. 

The following are links to "The Affordable Care Act" - IRS website.http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home

If you follow the above link to the IRS Website, you can go to the Healthcare.gov link from there or I have copied the link here: HealthCare.gov

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FROM THE IRS WEBSITE

Considerations for 2014

• Open Enrollment for the Health Insurance Marketplace: The open enrollment period to purchase health care coverage through the Health Insurance Marketplace for 2014 began Oct. 1, 2013 and runs through March 31, 2014. When you get health insurance through the marketplace, you may be able to get advance payments of the premium tax credit that will immediately help lower your monthly premium. Learn more at HealthCare.gov.

• Premium Tax Credit: If you get insurance through the Marketplace, you may be eligible to claim the premium tax credit. You can elect to have advance payments of the tax credit sent directly to your insurer during 2014, or wait to claim the credit when you file your tax return in 2015. If you choose to have advance payments sent to your insurer, you will have to reconcile the payments on your 2014 tax return, which will be filed in 2015. If you’re already receiving advance payments of the credit, you need do nothing at this time unless you have a change in circumstance. Learn More.

• Change in Circumstances: If you're receiving advance payments of the premium tax credit to help pay for your insurance coverage, you should report life changes, such as income, marital status or family size changes, to your marketplace. Reporting changes will help to make sure you are getting the proper amount of advance payments.

• Individual Shared Responsibility Payment: Starting January 2014, you and your family must have health care coverage, have an exemption from coverage, or make a payment when you file your 2014 tax return in 2015. Most people already have qualifying health care coverage and will not need to do anything more than maintain that coverage throughout 2014. Learn More.

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Depending on where you live, you may be getting very bad, disjointed or terrible information regarding the Affordable Care Act. That information can cost you big at tax time and this is why I am joining with the IRS and Healthcare.gov to beg you to find out the facts about ACA before you make an expensive mistake based on the lies of politicians and actors.

State Health Departments across the U.S., where the State did accept the Medicaid Expansion have received funding and JOBS to help citizens get information, and all of the help they need to enroll.  

In case you are not sure how to get in touch with your State Health Departments, I have included a link to The American Public Health Association (APHA) http://www.apha.org/about/Public+Health+Links/LinksStateandLocalHealthDepartments.htm 






Please don't forget to #GetCovered

Two-Year Limit For Innocent Spouse Relief Removed in 2011

 Innocent Spouse Relief: Removing The 2 Year Limit.

by Lori J Latimer - earthenwarehaven@gmail all rights reserved.

There are some cases and circumstances where a 2 year limit may apply. To make sure, either contact a tax professional, or go to http://www.irs.gov/Individuals/New-Rule-for-Innocent-Spouse-Relief (Innocent Spouse Page of www.irs.gov link) 

The Internal Revenue Service recognizes the difficulty for some Innocent Spouses to claim this relief from the tax / legal / credit due to their marital circumstances. 

A hearty Thank You goes out to members of Congress, the Department of Justice, The Internal Revenue Service for changing the two-year limit. 

So often people and families face life-changing events that impact them emotionally. Unknown to the general public, domestic abuse, missing children, absent adults, death and murder can have be jarring for the taxpayer as well. 

Some spouses are unable to claim Innocence against a criminal or abuser, because to do so will have dire consequences. In the past, an Innocent Spouse who may be in hiding, missing or under the power of another only had a two-year window of time to claim the Innocent Spouse relief. That has changed to take these type of circumstances into consideration.

Publication 971 - Innocent Spouse Relief - IRS Pub . GOV Link

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What's up with Grizzly Bear Tax Care?

For many years, the majority of my winters and early springs were spent locked into a co-dependency between tax preparer, and tax payer. Each April I would leave "tax season" exhausted. 

Now I understand the Grizzly better. The need to rest is because whatever the Bear does, she does with energy purpose and exactitude. 

As she ages, the Grizzly realizes she must take care of herself too, and choosing the battles we help others fight become based on true urgency rather than stress and adrenaline of almost every tax payer.

This Grizzly Bear has been on a very long winters nap. My hibernation clock did not go off, and the cave was nice and warm. 

Hunger has finally awakened me. 

Nationwide Free Tax Preparation Site List

 Free Tax Preparation Site List (link) 

Announcing National Tax Preparation sites to prepare taxes for free. This is a public service announced by The National Women's Law Center. 


The link above, is to the IRS website. If you have trouble understanding how to follow the links, you can call 1-800-906-9887 for help in finding participating VITA providers.

"The IRS sponsors the VITA program, which offers free tax help for families earning around $49,000 or less, and, in partnership with AARP, the Tax Aide program, which assists elderly tax filers in communities around the country. In addition, the military coordinates VITA services. Many VITA or Tax Aide sites offer e-filing, which allows families to receive their refunds even faster. " By NWLC

It is important that all citizens understand the credits and deductions available to them. Especially the poorest among us...The Children, and/y los hijos. Please click on the links for information to help those who need it the most.

Returns are filed electronically, and it does not take long for the IRS to process refunds.

Wait a few more days to keep from paying for those quick loans. Save your money, make a garden for your family and community. In order to grow families, they must have access to un-modified food, grown locally.

 Just some suggestions...The very best to each and every family.

IRS offers new Interactive tax assistant, new free search for tax law questions

IRS offers new Interactive Tax Assistant, new free search for Tax Law questions, and offers a down-loadable copy of your research!

The Internal Revenue Website (IRS), has always had an excellent search box, located on the upper right hand corner of the IRS website, within their own site for individuals, tax professionals, and Tax Law practitioners  , The Interactive Tax Assistant is a Tax Law Resource tool that goes beyond a simple How To Search. This is geared more toward the Tax Professional, Tax Lawyer, CPA, Enrolled Agent, and possibly IRS staff could make use of this friendly tool. 

This new toy for the Tax People among us. Us nerds, who wait anxiously, during February to get our ink-stained, paper-cut fingers, on the new Publication 17. (It is easily accessible on the www. IRS.gov website, and down-loadable in PDF format today. The Pub 17 as it is loving called is still available in paper, and on disc too) 

When Congress completes creating Tax Law Changes for the prior and upcoming tax years, it is when Tax Professionals come to life. Like bats in a cave, sleeping during the day, it appears there is not even a heartbeat among them. April 15, hails the end of the tax season. There are the extension filers and trouble cases that go through a good part of the year, but then it settles down to a mere trickle. Then, the second week of February comes, and it is on.


Then, the sounding bell rings through Tax-dom, "Congress has recessed, Congress has recessed, we may begin filing!"


The madness begins, and with many new tax law changes during this historical 2010-2011 session, we are seeing many breaks for businesses who withhold and match FICA for employees. Employees themselves are getting big relief. It is a huge break across the board. 


This year Tax Professionals will be held responsible for collecting and verifying every legal deduction taken. In years past, a CPA, or Tax preparer could have relied on the, "assume they are telling the truth rule", but so many Tax Professionals helped their clients fudge, that new rules came into affect.

The Interactive Tax Assistant tool, from the IRS, offers an easy and reliable source of research, that can take the pressure off of the Tax Pro, while assisting the Taxpayer/Client in having their books, K-1's, LLC's, Estate Tax Changes, and more. There are many US Taxpayers who have been able to bully an accountant, or preparer into doing his will, more than what the Tax Code says. This takes the pressure off. 


Another benefit that can be seen with this tool, are for a client's benefit. While preparing the books of a Company, Partnership, LLC or any other entity, if there are deductions or credits that are "red flags" or often get audited, while the Tax Pro knows this a legitimate expense or claim, this would appear to be a very helpful tool. 

When pre-answering questions that may be asked in an Audit or a Letter from the IRS, requesting more information in a tax matter this could be a time and worry saver all the way around. 


This blog has always been at the basic level, and on a higher professional level there are probably many other ways this tool can be implemented. 


Review of Tool - 

• Search must be by legal language or positioning phrases of Tax code or law.

I had a legal question that I needed to know for a close friend. It was in regards to the taxability of   an insurance settlement of an Estate of a Deceased descendant. 

On my first try, I used the standard Search criteria used for Google searches. 

Q. Is income from an Estate settlement taxable?

A. Came up with the topic of Income types, statuses; the basics of Income definition as they are applied to status, etc.

My next step, was to search closer to the subject, using regular search methods.

Q. Taxable Income from an Estate settlement.

A. Again, I got types of income, and a few other partially related topics.

Then, I asked in the wording used in Tax Code.

Q. Estate, taxes, settlements

A. Estate information came up the first time, When I returned to redo my process for this blog post, only standard information for types of income came up, but it quickly linked me to the information I was seeking.

The IRS has advanced with technology, and is helping taxpayer, take more responsibility in their taxes, while offering more tools for a subject, that makes the standard non-tax-nerd, roll their eyes to the back of their head, and leave. Way to go y'all. Thanks for making it a little easier.

Taxpayers who itemize, can file on Valentines Day, sweet

Wondering if this will delay kisses and hugs sent on-line on this very romantic holiday?
<3  ~ * ~   <3
There is a one day reprieve. Those who fill out the "long form" or itemize their US Federal Tax return will be able to file one day earlier than previously announced. Perhaps all of those loving and romantic Congresspersons, and Senators, would like to make it home in time to pour out their love and compassion on their Significant Other's. The majority are so loving, and filled with compassion, it would not be a surprise to see a new National Holiday! Don't call it tax day any longer, call it Love Day. Make this a tradition, so this time of tax reckoning will become a giant love fest! Thank you Representatives and Senators for putting the American majority in mind. Thank you for always putting the majority of your constituents first. Wow, I feel like playing the Star Spangled Banner! 

Go to www.irs.gov for the most up to date announcements, or come back anytime.

Taxpayers who Itemize must wait until February 15, 2011 to file

There are many people in an uproar over this, here January 18, 2011. So many Americans are in the rut of over withholding all year long, they are desperate to get this big payoff, right in January. This is the same as it always is, except, before Taxpayers could rush in, with partial information, getting large loans on a projected income, that never comes, saying they will just do a 1040X. 


In order to itemize, when you prepare, or pay someone else to file your 2010 taxes, you will be required to produce that evidence to the preparer, or IRS. Tax preparers, will no longer take the risk that the taxpayer has all of the figures needed, and lets file those taxes. It has become a mad game of give and git. The American taxpayers are doing themselves a grave injustice with financing the US Treasury.


Many American Taxpayers do not realize they can be fined for over withholding as easily as under withholding. The IRS does not prefer taxpayers to use the US Treasury as a savings account. Why, would anyone loan out thousands of dollars per year interest free, while paying around 23% interest to use their own purchasing power or money?

For those who think they are benefiting their financial means at all, I must say, NO! You are robbing yourself of Double the money! 


I have heard, listened and given some understanding to the practice, but it is a very harmful financial practice. What has started taxpayers on the road to poverty, are these type of practices, without realizing how much they are shorting themselves. Most Americans live on credit, or they did until 2009.


Millions of Americans loan thousands of dollars per year to the US Treasury, interest free. The thing that is strange, is that these same individuals pay around 23% interest to use their own money, all year long.

Paying tax on income, means you do your best to break even, or be very close. A taxpayer who has worked in the same income for more than one tax year, knows what he/she was required to pay in taxes. Or what their taxable income was for the prior year. This means, that the next year, you must pay in at least 90% of the taxes you paid the previous year. No more, no less.


There are reasons why one year can change drastically from the next. By keeping up with how much income tax, social security and Medicare, is being paid in through the year, one may stay within dollars of what they will owe, or be refunded when it comes time to divvy up at the tax table.


The IRS website, located at www.irs.gov has all the tools a taxpayer, or prospective taxpayer would need to keep up with how to optimize their entire financial outlook. The one tool that is rarely used, is the IRS Withholding Calculator. When using the IRS Withholding Calculator, found under the Individual Tab, and about 5 paragraphs down, you will know how much you have paid in, and how much is required, depending on your projected income. Projected is important, because you may like to do the majority of your withholding from day one of the new tax year. Something can happen, where your income increases, or decreases greatly. When this happens, it is time to adjust withholding correctly. At the end of each session of the IRS Withholding Calculator, you are offered an opportunity or chance to print off and download a new W-4. 

It is important that the taxpayer keep up with their own withholding throughout the year. If an employer under withheld, or did not pay in the Social Security, and/or Medicare, the individual taxpayer will be held responsible.


I understand it is not prestigious to live within ones means. It seems an illusive image American taxpayers have created for themselves. Somehow it is more fab, more popular, more 'with it' to charge purchases, living on credit, until someone else pulls the plug.


The average refund of those getting money back is about $3,000.00 per year. That is about $57.00 per week, $250.00 per month extra each taxpayer could have throughout their year. The only thing is, it isn't flashy, or doesn't carry with it some kind of image Americans think they must fit. Double your money, stop over withholding, and cut up those credit cards. They are NOT for Emergencies.

Tax Tips For Small Business, Small Tax-Exempt, TAA and PBGC Recipients.

(link)Small Tax-Exempt Have until October 15th! One Time Offer If your tax-exempt or non-profit has not filed this simple informational form with the IRS, you stand a chance of losing your status. This is a One Time offer by the IRS, to help you get what is needed done for compliance.



(LINK) e-postcard - FORM 990 - Organizational - Don't lose your status.


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(link) Health Coverage Tax Credit Program - TAA or PBGC Recipients Eligible


(link) IRS - HCTC: Health Coverage Tax Credit - June 2010



(link) What the HCTC is... = Health Coverage Tax Credit


(link) HCTC: Eligibility & Benefits - Monthly & Annually - How it Works

        


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(link) IRS - YouTube - Sm Business Tax Credit 2010 - April 2010, As a Small Employer, or Tax-Exempt Group -  (less than 25 employees) that pays at least HALF of employees health Insurance premiums for your employees. For profit, will get up to a 35% credit. [Small Business General Tax Credit].


 For tax exempt employers, the IRS will give you more information on how to claim an up to 25% credit of premiums paid for your staff. 


(link) IRS - YouTube - Sign Language of Small Business Tax Credit



Small Business Tax Credit - More Explanation by the IRS - YouTube - Starting 2010 Through 2013

(link) Phasing In & Out of Employer Contribution to Employees Health Care Premiums
by Cook, Martin, Poulson

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(link) Health Care Choices You May Make in 2011 - HSA


This is a Hub I wrote regarding a lot of hype and untruth meant to scare individuals into not taking advantage of the changes in how Health Care Plans will be charged and managed. There are links to the new website


 (LINK) WWW. HEALTHCARE . GOV - find your State and General Information