Bill Hendricks

Eight Tips About The New ACA Information Statements (1095-B and 1095-C)

This information comes from IRS Issue Number HCTT 2015-84.  It pertains to the Affordable Care Act (ACA), also known as Obamacare.  

Many individuals will receive new ACA information statements for the first time in 2016:

  • Form 1095-B, Health Coverage
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

Here are eight tips about these new statements that can help you file your taxes.  

  1. While the forms may help you complete your tax return, they are not required to file. You can file your federal tax return even if you have not received one of these statements.
  2. Form 1095-B, Health Coverage, is used by providers to report information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage and therefore aren't liable for the individual shared responsibility payment.
  3. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage is used by companies with 50 or more full-time employees to report the information required about offers of health coverage and enrollment in health coverage for their employees. 
  4. Form 1095-C is also used by employers that offer employer-sponsored self-insured coverage to report information about individuals who have minimum essential coverage under the employer plan and therefore are not liable for the individual shared responsibility payment for the months that they are covered under the plan.
  5. Individuals who worked for multiple employers that are required to file Form 1095-C may receive a Form 1095-C from each employer.
  6. For your protection, form 1095-B and 1095-C may only include only the last four digits of your social security number or taxpayer identification number. 
  7. These forms will be mailed to you, unless you consent to  paperless (electronic) statements with your health insurance company. 
  8. Health insurance providers should furnish a copy of Form 1095-B, to you if you are identified as the “responsible individual.”

This sounds complicated, but it's not that bad.  That's the best thing about using software to do your taxes - we ask you simple questions, crunch the numbers, and put everything in it's place, just the way Uncle Sam likes it.  

File Your Taxes Now

IRS e-File Opens January 19, 2016

 

Following a review of the tax extenders legislation signed into law last week, the Internal Revenue Service announced today that the nation’s tax season will begin as scheduled on Tuesday, Jan. 19, 2016.  That’s one day earlier than last year’s start date (January 20, 2015).

You can file your taxes before January 19th with most tax software providers and they will be stockpiled until IRS is open. When e-file is ready, returns will be submitted to IRS in the order they were received.

As mentioned earlier, Tax Day is pushed out a bit this year. Tax Day is on Monday, April 18, 2016, rather than April 15, 2016.

“We look forward to opening the 2016 tax season on time,” IRS Commissioner John Koskinen said. “Our employees have been working hard throughout this year to make this happen. We also appreciate the help from the nation’s tax professionals and the software community, who are critical to helping taxpayers during the filing season.”

Koskinen noted the new legislation makes permanent many provisions and extends many others for several years. "This provides certainty for planning purposes, which will help taxpayers and the tax community as well as the IRS," he said.

Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS anticipates issuing more than 9 out of 10 refunds in less than 21 days.

File Your Taxes Now


When can I file my 2016 taxes?

 

Great question!  But what you really meant to ask is – when can I file my 2015 taxes?  It’s a bit confusing.  In 2016 you will be filing your 2015 taxes, settling up with Uncle Sam on the income you made in 2015.


The short answer is – now!  File your taxes today.  For more important tax dates and deadlines, read on.

 

November 2015

TaxAct opened its virtual doors and started preparing 2015 tax returns.

 

January 19, 2016

IRS e-file goes live and begins processing returns.  If you file your taxes before this date, TaxAct will transmit your return as soon as IRS is ready to process it.

 

February 1, 2016

Deadline for your employer to mail you your 2015 W-2.  Note this is a mailing deadline, not a receipt deadline, so if your company is slacking, it may take a few extra days to get it via snail mail.  Many employers offer electronic versions via the same website you can view your pay checks.

If you received unemployment income, this is also the deadline for the state(s) to provide you with a 1099-G.

Finally, this is deadline for banks to supply you with a 1099-INT reporting bank account interest you made.  Note that banks are only required to issue a 1099-INT if you made at least $10 of interest during the year, however you are still required to report it even if they don’t send you one.  If you made less than $10, use your bank statements or online banking to determine the amount of interest you made.

 

April 18, 2016

Tax Day. Yes, you read that right, it's April 18th in 2016 instead of April 15th

You can thank Washington, D.C., for the extra time. Washington will celebrate Emancipation Day on April 15. This is a federal holiday, so the IRS will be closed. Emancipation Day is typically celebrated on April 16. However April 16 falls on a Saturday in 2016, so Emancipation Day was celebrated on Friday April 15, and Tax Day was pushed back to Monday April 18.

Didn't file your 2015 taxes on time?  No worries, we'll let you in on an industry secret – if you're getting a refund, you can file for up to 3 years with no late fees or penalties! If you owe additional taxes, your penalties are racking up, so file your return as soon as possible. Either way, it's not too late to file your 2015 taxes.  File Now or Learn More.

 

October 15, 2016

If you filed an extension and owe additional taxes, this is your deadline to file your completed return and pay any remaining taxes owed.

 

FILE YOUR TAXES NOW