What am I missing --- ACA -- commercials saying they will help tax "clients" ... ACA - not a tax issue???

[easytax]

I posted this on the "other" ATX but since many people do not belong or go there I wanted to ask here too.

OK, WHAT am I missing --- a number of commercials for different "tax preparation" companies are saying they will help the "tax client" with what they need to know about the ACA (affordable care act) and what they can look for with their taxes.

Additionally, I have received two "survey's" from non-ATX tax software forums asking how I was going to handle ACA with my tax clients this filing year (was I charging more; what was I going to tell them; several other things and of course "had I or would I" take a course and how much did I/would I pay, etc.).

1/ ACA as far as many tax practitioners are concerned -- is not till next year filing.

2/ The insurance side is a NOT a "TAX" issue and NOT part of tax preparation.

3/ Maybe -- something for the "payroll" folks to discuss with business, etc. but not regular tax filers.

4/ Since not tax issue how would a tax practitioner consult on "insurance" and be safe to offer a qualified opinion?

5/ Why would the IRS let a blatant thing like this be advertised when we as "professional" tax preparers have the 230 to answer to?

I must be missing something here... ANY serious explanation would be appreciated.

Thanks.

[jklcpa]

We should be asking enough questions and helping our clients assess the potential penalty that they may be subject to and that would be due in 2014 based on the 2013 tax year. It will be part of our job as tax preparers because the penalties and any subsidies are based on what the clients are reporting on their returns.

My tax software has a screen that asks for the pertinent data, but I have not tested it out yet, and I've not opened those surveys either.

[Jack from Ohio]

Your post indicates to me that there are many parts of how the ACA will be implemented that you are not aware of. MAJOR portions!!

If you do not become knowledgeable, and give your clients a heads up about possible penalties in tax year 2014. Who do you think they are going to blame when you tell them that Uncle Sam is keeping from $95-$1,000 or more of their tax refund due to them not having adequate health insurance and they are not expecting it?

We have had this dumped into our lap by Congress and then we also become responsible for not giving our clients accurate information, or for not collecting and reporting accurate information on the 2014 return.

Waiting is a recipe for disaster!!

Fees will be increased accordingly and more time will be needed for each client. Thank you Congress and Obamacare!!!

[kcjenkins]

I'm really disgusted at this year's tax prep ads. Especially the "Did you get married last year? If you can answer that...."

[Mr. Pencil]

ACA as far as many tax practitioners are concerned -- is not till next year filing.

As Jack from Ohio points out, this complicated legislation has many important tax aspects this year . For one thing, any practitioner planning to send a letter to clients should review the new final regs on disclosure and use of tax return information.

Although the shared responsibility provision affects returns starting next year, the open enrollment period ends before April 15 so I see that as part of this year's interview rather than a separate planning engagement.

There are other important issues that affect the 2013 returns we are doing. The Schedule A threshold for medical bills is 10% now, which might lower AMT. Changes to FSA plans, such as contribution amounts and expenditures, have current tax implications. If a client receives a rebate for Medical Loss Ratio it might be taxable if premiums had been deducted on Form 1040 or Schedule A. But you can explain that a $250 donut hole payment is not taxable.

Your high income client may be subject to the additional Medicare tax or the net investment income tax. W-2s have a new entry for employer health plans. Adoption credit is changed. All sorts of things.

[easytax]

Appreciate the replies.

Basically they changed my perspective -- I have been looking at ACA as how much will the government subsidy be, how is it calculated, etc. --- which I don't have a clue on --- and how does that impact my clients and their taxes. Looking at it from the "tax" changes (3.8%, .9% increase, 10% up from 7.5% itemized, etc. that part I understand and is just part of helping clients with "tax" requirements.

Since I still have not seen ANY (again, if I'm missing these, please let me know) real guidance from the IRS on figuring ACA actual numbers to "guide" client with, on that part, I am still confused. Even the EITC had guidance and forms and pubs, etc. (although they too changed/shifted).

Tax changes, I can share, guidance on numbers that apparently the government STILL has not figured out yet -- is where I am lost.

Again, Thanks.

[joanmcq]

I'm going to ask my client if they have insurance and if not, discuss the implications of the ACA with them, and direct them to CoveredCA if they don't have insurance. I'll also make sure they know what the subsidy, if any, is based on, and tell them about the penalty. I also have a client that is an insurance agent, so if they are really confused I can make a referral.

[jklcpa]

About a month ago I printed off a list with client names and AGI on it. I ran down that list to identify any clients that I believe aren't covered by an employer's plan and whose income may qualify them for the subsidy. I'll be asking for sure, but I didn't come up with many at all that might benefit. The bigger issue for me will be the planning for those that are affected by the additional taxes on net investment income and medicare tax, and calculating estimates and withholdings on bonuses.

[Jack from Ohio]

Appreciate the replies.

Basically they changed my perspective -- I have been looking at ACA as how much will the government subsidy be, how is it calculated, etc. --- which I don't have a clue on --- and how does that impact my clients and their taxes. Looking at it from the "tax" changes (3.8%, .9% increase, 10% up from 7.5% itemized, etc. that part I understand and is just part of helping clients with "tax" requirements.

Since I still have not seen ANY (again, if I'm missing these, please let me know) real guidance from the IRS on figuring ACA actual numbers to "guide" client with, on that part, I am still confused. Even the EITC had guidance and forms and pubs, etc. (although they too changed/shifted).

Tax changes, I can share, guidance on numbers that apparently the government STILL has not figured out yet -- is where I am lost.

Again, Thanks.

I have attended 3 different seminars for 2013 taxes that all spoke and provided the information for me to give my clients an estimate of the penalties if they are not insured. I also am now equipped to explain how the penalties, and subsidies are treated on 2014 tax return. The information is out there. The first one I attended was in early December.

[RitaB]

I'm really disgusted at this year's tax prep ads. Especially the "Did you get married last year? If you can answer that...."

I saw one this morning that asked something to the effect of: "Did you give that shirt you hate to a person who likes it?" Thanks a lot, now I can explain to even more people that you cannot deduct gifts to individuals. And fewer will believe me. I mean, after all, it was on TV...

[Hillenburg]

I would add that it is important to inform clients that what you are telling them is your understanding of the law TODAY. There are numerous lawsuits challenging various parts of ACA. We have had several changes made by the President. There will be campaign contributors looking for a return on their investment. I don't know that I can tell my clients what the law will be a year from now with any degree of certainty.

[Gail in Virginia]

I would add that it is important to inform clients that what you are telling them is your understanding of the law TODAY. There are numerous lawsuits challenging various parts of ACA. We have had several changes made by the President. There will be campaign contributors looking for a return on their investment. I don't know that I can tell my clients what the law will be a year from now with any degree of certainty.

But that is really true for any tax law - congress can, and sometimes does, change laws at any time during the year. They have even been known to do it retroactively. I routinely tell my clients that everything I say is subject to change any time congress is in session.

[Lee B]

I have attached the IRS FAQ on the ACA Mandate:

Questions and Answers on the Individual
Shared Responsibility Provision
Basic Information

1. What is the individual shared responsibility provision?
Under the Affordable Care Act, the federal government, state governments, insurers, employers
and individuals are given shared responsibility to reform and improve the availability, quality and
affordability of health insurance coverage in the United States. Starting in 2014, the individual
shared responsibility provision calls for each individual to have minimum essential health coverage
(known as minimum essential coverage) for each month, qualify for an exemption, or make a
payment when filing his or her federal income tax return.

2. Who is subject to the individual shared responsibility provision?
The provision applies to individuals of all ages, including children. The adult or married couple who
can claim a child or another individual as a dependent for federal income tax purposes is
responsible for making the payment if the dependent does not have coverage or an exemption.

3. When does the individual shared responsibility provision go into effect?
The provision goes into effect on Jan. 1, 2014. It applies to each month in the calendar year. The
amount of any payment owed takes into account the number of months in a given year an individual
is without minimal essential coverage or an exemption.

4. Is transition relief available in certain circumstances?
Yes. Notice 2013-42, published on June 26, 2013, provides transition relief from the shared
responsibility payment for individuals who are eligible to enroll in eligible employer-sponsored health
plans with a plan year other than a calendar year (non-calendar year plans) if the plan year begins
in 2013 and ends in 2014 (2013-2014 plan year). The transition relief applies to an employee, or an
individual having a relationship to the employee, who is eligible to enroll in a non-calendar year
eligible employer-sponsored plan with a 2013-2014 plan year. The transition relief begins in January
2014 and continues through the month in which the 2013-2014 plan year ends

5. What counts as minimum essential coverage?
Minimum essential coverage includes the following:
Employer-sponsored coverage (including COBRA coverage and retiree coverage)
Coverage purchased in the individual market, including a qualified health plan offered by the
Health Insurance Marketplace (also known as an Affordable Insurance Exchange)
Medicare Part A coverage and Medicare Advantage plans
Most Medicaid coverage
Children's Health Insurance Program (CHIP) coverage
Certain types of veterans health coverage administered by the Veterans Administration
TRICARE
Coverage provided to Peace Corps volunteers
Coverage under the Nonappropriated Fund Health Benefit Program
Refugee Medical Assistance supported by the Administration for Children and Families
Self-funded health coverage offered to students by universities for plan or policy years that
begin on or before Dec. 31, 2014 (for later plan or policy years, sponsors of these programs
may apply to HHS to be recognized as minimum essential coverage)
State high risk pools for plan or policy years that begin on or before Dec. 31, 2014 (for later
plan or policy years, sponsors of these program may apply to HHS to be recognized as
minimum essential coverage)
Minimum essential coverage does not include coverage providing only limited benefits, such as
coverage only for vision care or dental care, and Medicaid covering only certain benefits such as
family planning, workers' compensation, or disability policies.

6. What are the statutory exemptions from the requirement to obtain minimum essential
coverage?
Religious conscience. You are a member of a religious sect that is recognized as
conscientiously opposed to accepting any insurance benefits. The Social Security Administration
administers the process for recognizing these sects according to the criteria in the law.

1.
Health care sharing ministry. You are a member of a recognized health 2. care sharing ministry.
3. Indian tribes. You are a member of a federally recognized Indian tribe.
No filing requirement. Your income is below the minimum threshold for filing a tax return. The
requirement to file a federal tax return depends on your filing status, age and types and
amounts of income. To find out if you are required to file a federal tax return, use the IRS
Interactive Tax Assistant (ITA).

4.
Questions and Answers on the Individual Shared Responsibility Provision http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Share...
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Short coverage gap. You went without coverage for less than three consecutive months during
the year. For more information, see question 22.

5.
Hardship. The Health Insurance Marketplace, also known as the Affordable Insurance
Exchange, has certified that you have suffered a hardship that makes you unable to obtain
coverage.

6.
Unaffordable coverage options. You can’t afford coverage because the minimum amount you
must pay for the premiums is more than eight percent of your household income.
7.
Incarceration. You are in a jail, prison, or similar penal institution or correctional facility after
the disposition of charges against you.

8.
Not lawfully present. You are not a U.S. citizen, a U.S. national or an alien lawfully present in
the U.S.

7. What do I need to do if I want to be sure I have minimum essential coverage or an
exemption for 2014?
Most individuals in the United States have health coverage today that will count as minimum
essential coverage and will not need to do anything more than continue the coverage that they
have. For those who do not have coverage, who anticipate discontinuing the coverage they have
currently, or who want to explore whether more affordable options are available, the Health
Insurance Marketplace will open for every state and the District of Columbia in October of 2013.
The Health Insurance Marketplace will help qualified individuals find minimum essential coverage
that fits their budget and potentially financial assistance to help with the costs of coverage
beginning in 2014. The Health Insurance Marketplace will also be able to assess whether
applicants are eligible for Medicaid or the Children’s Health Insurance Program (CHIP). For those
who will become eligible for Medicare during 2013, enrolling for Medicare will also ensure that you
have minimum essential coverage for 2014.
For those seeking an exemption, the Health Insurance Marketplace will be able to provide
certificates of exemption for many of the exemption categories. HHS has issued final regulations on
how the Health Insurance Marketplace will go about granting these exemptions. Individuals will also
be able to claim certain exemptions for 2014 when they file their federal income tax returns in 2015.
Individuals who are not required to file a federal income tax return are automatically exempt and do
not need to take any further action to secure an exemption. See question 21 for further information
on exemptions.
For more information about the Health Insurance Marketplace, including how to sign up for email
updates and tips on how to prepare for open enrollment in October 2013, visit the Health Insurance
Marketplace website .

8. Is more detailed information available about the individual shared responsibility
provision?
Yes. The Treasury Department and the IRS have issued final regulations on the new individual
shared responsibility provision.

Who is Affected?
9. Are children subject to the individual shared responsibility provision?
Yes. Each child must have minimum essential coverage or qualify for an exemption for each month
in the calendar year. Otherwise, the adult or married couple who can claim the child as a
dependent for federal income tax purposes will owe a payment.

10. Are senior citizens subject to the individual shared responsibility provision?
Yes. Senior citizens must have minimum essential coverage or qualify for an exemption for each
month in a calendar year. Senior citizens will have minimum essential coverage for every month
they are enrolled in Medicare.

11. Are all individuals living in the United States subject to the individual shared
responsibility provision?
All U.S. citizens are subject to the individual shared responsibility provision as are all permanent
residents and all foreign nationals who are in the United States long enough during a calendar year
to qualify as resident aliens for tax purposes. Foreign nationals who live in the United States for a
short enough period that they do not become resident aliens for federal income tax purposes are
not subject to the individual shared responsibility payment even though they may have to file a U.S.
income tax return. The IRS has more information available on when a foreign national becomes a
resident alien for federal income tax purposes.

12. Are US citizens living abroad subject to the individual shared responsibility provision?
Yes. However, U.S. citizens who live abroad for a calendar year (or at least 330 days within a 12
month period) are treated as having minimum essential coverage for the year (or period). These
are individuals who qualify for an exclusion from income under section 911 of the Code. See
Publication 54 for further information on the section 911 exclusion. They need take no further action
to comply with the individual shared responsibility provision.

13. Are residents of the territories subject to the individual shared responsibility provision?
All bona fide residents of the United States territories are treated by law as having minimum
essential coverage. They are not required to take any action to comply with the individual shared
Questions and Answers on the Individual Shared Responsibility Provision http://www.irs.gov/uac/Questions-and-Answers-on-the-Individual-Share...
2 of 4 1/16/2014 5:07 PM
responsibility provision.

Minimum Essential Coverage

14. If I receive my coverage from my spouse’s employer, will I have minimum essential
coverage?
Yes. Employer-sponsored coverage is generally minimum essential coverage. (See question 5 for
information on specialized types of coverage that are not minimum essential coverage.) If an
employee enrolls in employer-sponsored coverage for himself and his family, the employee and all
of the covered family members have minimum essential coverage.

15. Do my spouse and dependent children have to be covered under the same policy or
plan that covers me?
No. You, your spouse and your dependent children do not have to be covered under the same
policy or plan. However, you, your spouse and each dependent child for whom you may claim a
personal exemption on your federal income tax return must have minimum essential coverage or
qualify for an exemption, or you will owe a payment when you file.

16. My employer tells me that our company’s health plan is “grandfathered.” Does my
employer’s plan provide minimum essential coverage?
Yes. Grandfathered group health plans provide minimum essential coverage.

17. I am a retiree, and I am too young to be eligible for Medicare. I receive my health
coverage through a retiree plan made available by my former employer. Is the retiree plan
minimum essential coverage?
Yes. Retiree health plans are generally minimum essential coverage.

18. I work for a local government that provides me with health coverage. Is my coverage
minimum essential coverage?
Yes. Employer-sponsored coverage is minimum essential coverage regardless of whether the
employer is a governmental, nonprofit or for-profit entity.

19. Do I have to be covered for an entire calendar month in order to get credit for having
minimum essential coverage for that month?
No. You will be treated as having minimum essential coverage for a month as long as you have
coverage for at least one day during that month.

20. If I change health coverage during the year and end up with a gap when I am not
covered, will I owe a payment?
Individuals are treated as having minimum essential coverage for a calendar month if they have
coverage for at least one day during that month. Additionally, as long as the gap in coverage is less
than three months, you may qualify for an exemption and not owe a payment. See question 22 for
more information on the exemption for short coverage gaps.

Exemptions

21. If I think I qualify for an exemption, how do I claim it?
It depends upon which exemption it is.
The religious conscience exemption and most hardship exemptions are available only by going
to the Health Insurance Marketplace and applying for an exemption certificate. Information on
final rules for obtaining these exemptions is available.
The exemptions for members of federally recognized Indian tribes, members of health care
sharing ministries and individuals who are incarcerated are available either by going to a
Marketplace or Exchange and applying for an exemption certificate or by claiming the exemption
as part of filing a federal income tax return.
The exemptions for unaffordable coverage, short coverage gaps, certain hardships and
individuals who are not lawfully present in the United States can be claimed only as part of filing
a federal income tax return. The exemption for those under the federal income tax return filing
threshold is available automatically. No special action is needed.

22. What qualifies as a short coverage gap?
In general, a gap in coverage that lasts less than three months qualifies as a short coverage gap. If
an individual has more than one short coverage gaps during a year, the short coverage gap
exemption only applies to the first gap.

23. If my income is so low that I am not required to file a federal income tax return, do I
need to do anything special to claim an exemption from the individual shared responsibility
provision?

No. Individuals who are not required to file a tax return for a year are automatically exempt from
owing a shared responsibility payment for that year and do not need to take any further action to
secure an exemption. Individuals who are not required to file a tax return for a year, but file anyway,
will be able to claim the exemption on their tax return.

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Page Last Reviewed or Updated: 24-Sep-2013
Reporting Coverage or Exemptions or Making Payments

24. Will I have to do something on my federal income tax return to show that I had coverage
or an exemption?
The individual shared responsibility provision goes into effect in 2014. You will not have to account
for coverage or exemptions or to make any payments until you file your 2014 federal income tax
return in 2015. Information will be made available later about how the income tax return will take
account of coverage and exemptions. Insurers will be required to provide everyone that they cover
each year with information that will help them demonstrate they had coverage beginning with the
2015 tax year.

25. What happens if I do not have minimum essential coverage or an exemption, and I
cannot afford to make the payment with my tax return?
The IRS routinely works with taxpayers who owe amounts they cannot afford to pay. The law
prohibits the IRS from using liens or levies to collect any payment you owe related to the individual
responsibility provision, if you, your spouse or a dependent included on your tax return does not
have minimum essential coverage. However, if you owe a shared responsibility payment, the IRS
may offset that liability against any tax refund you may be due.

[Jack from Ohio]

Now you just need all the tables, charts and explanations about how it is all calculated. You better seek out some training seminars. Those FAQ are far from adequate to learn and understand what we need to know.

[easytax]

The tax aspects I can and will answer and I will find some webinars for those parts (no travel, etc.).

The tables, charts, etc. as far as the insurance numbers --- not from me -- I have been out of insurance for a number of years and am no longer licensed for insurance. The "tax" preparation liability is mine --- I know what I put my signature to. The insurance liability, I do not want, so with the litigious society we have; I will not recommend or explain something that even though administered by the IRS, is more an insurance aspect than a tax aspect. Kind of like practicing law with out a law license.

After all, from what I can understand and confirm, the employer or "marketplace" will supply forms giving the subsidy, premium credit, etc. and the government will "tell" the consumer (based on the facts the consumer gives the government (at the "marketplace")) what advanced credit, offset, etc. they may have. All the consumer has to do is keep updating the government through the "marketplace" with any changes, etc. ---- if not, then the consumer has the wrong numbers and ----- I get to take that into account --- when preparing the 2014 return in 2015 (based on the forms (numbers) supplied by the employer and/or government).

Since I do no payroll, etc.; I do not need to have the discussions with employers and can simply suggest they contact their licensed insurance person for those numbers --- again, reminding them that when they have the numbers, I can THEN help them look at their "tax" numbers.

The individuals asking, if not on Medicare, etc. and/or employed, etc. will be referred to their licensed insurance agents and government "marketplace" to figure out the numbers --- again, reminding them that when they have the numbers, I can THEN help them look at their "tax" numbers.

Has anyone seen/heard that in January 2015 our clients will be receiving Forms 1095A, 1095B & 1095C, which will be needed for the calculation of the penalty and/or credit? I received this information in a different site post. However, I can not find them on the IRS form/pub site.

[Jack from Ohio]

The tax aspects I can and will answer and I will find some webinars for those parts (no travel, etc.).

The tables, charts, etc. as far as the insurance numbers --- not from me -- I have been out of insurance for a number of years and am no longer licensed for insurance. The "tax" preparation liability is mine --- I know what I put my signature to. The insurance liability, I do not want, so with the litigious society we have; I will not recommend or explain something that even though administered by the IRS, is more an insurance aspect than a tax aspect. Kind of like practicing law with out a law license.

After all, from what I can understand and confirm, the employer or "marketplace" will supply forms giving the subsidy, premium credit, etc. and the government will "tell" the consumer (based on the facts the consumer gives the government (at the "marketplace")) what advanced credit, offset, etc. they may have. All the consumer has to do is keep updating the government through the "marketplace" with any changes, etc. ---- if not, then the consumer has the wrong numbers and ----- I get to take that into account --- when preparing the 2014 return in 2015.

Since I do no payroll, etc.; I do not need to have the discussions with employers and can simply suggest they contact their licensed insurance person for those numbers --- again, reminding them that when they have the numbers, I can THEN help them look at their "tax" numbers.

Has anyone seen/heard that in January 2015 our clients will be receiving Forms 1095A, 1095B & 1095C, which will be needed for the calculation

of the penalty and/or credit? I received this information in a different site post.

You need to go get actual seminar teaching. You are missing so much.

Your competition is or already has.

[jshtax]

You need to go get actual seminar teaching. You are missing so much.

Your competition is or already has.

Or you could just not deal with people/clients that are impacted by this.

[Jack from Ohio]

Or you could just not deal with people/clients that are impacted by this.

That would mean doing ZERO returns for 2014.

EVERY taxpayer will be affected by the ACA in 2014. The questions will have to be answered on EVERY return.

If the taxpayer has insurance, numbers will have to be entered from the 1095B issued by the insurance company. If it is employer provided, the employer will provide 1095C. If the taxpayer received subsidies, the amount of the subsidies will have to be entered to see if the subsidy was too large (IRS will take it back) or too small (Taxpayer will get more refund).

If the taxpayer does not have insurance, information about his household income will need to be entered to calculate the penalties.

How many questions and how much information will be needed will be different for each taxpayer, but it will be across the board. This is not new information.

[easytax]

Thanks, I now know what the 1095 forms are (first I heard about them was last week). THAT WAS SOMETHING I WAS MISSING ---- THANKS again!

Let me clarify; The tax aspects of ACA are understood and will be freely shared--- what I refer to as "insurance aspects" and not really a "tax" aspect (does affect, but NOT (to me) actual part of helping my tax clients) is the actual numbers that will be used to do the tax preparation.

Sharing information on what the ACA is/does is not what I mean --- that is actually pretty straight forward (yes, could be a pain --- but straight forward). What I was confused about was giving my clients the numbers they "might" need --- when that depends on the insurance they buy (or don't buy).

With the 1095 forms that onus is off the practitioner.

As far as estimated what the subsidies might be (not the penalties -- again pretty straight forward 2014 either $95 or 1% over basis, etc.) I still can not in good conscious tell my clients the subsidy number; --- that will need to come from someone such as the form 1095 issuers or a "licensed insurance agent" or maybe the "marketplace". I DO NOT want the liability for "you gave me the wrong amount" -- let the 1095 issuer or licensed insurance agent have that liability.

That is one of the nice things about this forum ----- you ask the question, get perspective and answers !!

Have a good season, Ed.

[Jack from Ohio]

Thanks, I now know what the 1095 forms are (first I heard about them was last week). THAT WAS SOMETHING I WAS MISSING ---- THANKS again!

Let me clarify; The tax aspects of ACA are understood and will be freely shared--- what I refer to as "insurance aspects" and not really a "tax" aspect (does affect, but NOT (to me) actual part of helping my tax clients) is the actual numbers that will be used to do the tax preparation.

Sharing information on what the ACA is/does is not what I mean --- that is actually pretty straight forward (yes, could be a pain --- but straight forward). What I was confused about was giving my clients the numbers they "might" need --- when that depends on the insurance they buy (or don't buy).

With the 1095 forms that onus is off the practitioner.

As far as estimated what the subsidies might be (not the penalties -- again pretty straight forward 2014 either $95 or 1% over basis, etc.) I still can not in good conscious tell my clients the subsidy number; --- that will need to come from someone such as the form 1095 issuers or a "licensed insurance agent" or maybe the "marketplace". I DO NOT want the liability for "you gave me the wrong amount" -- let the 1095 issuer or licensed insurance agent have that liability.

That is one of the nice things about this forum ----- you ask the question, get perspective and answers !!

Have a good season, Ed.

You have missed the points completely.....

<<<"With the 1095 forms that onus is off the practitioner.">>> is far from reality. It is only a small part of the reporting.

You have been informed, how you choose to use the information is up to you.

[jshtax]

Either they do or do not have insurance that meets minimum requirements and if they don't they pay the penalty. If they do and their income is within the range for subsidies they get them to help with premiums. Only thing I plan on telling clients is to make sure their health insurance is within ACA min requirements or else they will have a penalty to pay on top of what they pay for insurance.

[Mr. Pencil]

The individuals asking, if not on Medicare, etc. and/or employed, etc. will be referred to their licensed insurance agents and government "marketplace" to figure out the numbers --- again, reminding them that when they have the numbers, I can THEN help them look at their "tax" numbers.

That's exactly right. Your role for individuals this year is not very big, so relax about it. Many tax issues are much more complicated, such as dependency or IRA contributions/distributions/conversions/inheritance.

Overall, Obamacare policies only affect about 20% of the population anyway. Just explain that there is a choice of policies in different price ranges. Direct them to www.healthcare.gov for more information, including personal assistance. There will be some new forms and procedures next year, but your software will step you through it just fine.

A few cautions, though. First of course don't talk about the national politics or media coverage. Tell your client to find out the specific FACTS for his own case from www.healthcare.gov (or a state exchange). If the client insists on knowing the amount of credit or penalty, don't try to do it immediately. Just say you will include it in your workpapers while you are finishing this year's return. Also, recommend the exchange rather than an insurance agent for low-income clients. Although they might get the same policy, it is only eligible for subsidy or credit if they buy it through the exchange.

[easytax]

For those who might want an alternative to "going to a seminar/webinar and in particial answer to part of my own question and suggestions that some good seminars/webinars on the ACA would be beneficial I found the following web site:

http://kff.org/interactive/subsidy-calculator/ .

When you visit this calculator you can ALSO go to there "home" tab and give yourself a VERY informative webinar (only difference is you are "reading" instead of being "talked to").

This not only shares good information but also has various "parts" that can/should be shared with those clients with a lot of questions. This should allow you to "help" the clients without the liability I wonder about.

Here is a PDF of an interesting "chart" that I believe I will be sharing when/if the discussion gets to ACA.

requirement_flowchart_2 050113.pdf

Again, good taxing .... remember ---- we are the good guys/gals (got-to be PC ) -------- not the actual "tax collectors" .