Insurance

[BLACK BART]

Without mentioning the dreaded O-word, does anyone know IF we will have to be concerned whatsoever in any shape, form, or manner whether anyone did/did not have insurance this year?  I know the penalty's gone, but are we finally through with the mess (except for 8962 under-over payment cases which I will REFUSE to do) and can I drop this 10 lb. stack of related data/junk in the garbage can once and for all? 

 

[Randall]

My question is will insurance companies still be required to issue Forms 1095?  I use the form as a convenient documentation for the child credits and Form 8867. 

[Lee B]

The requirement to issue Form 1095 has not gone away. I know I will be  hard at work in late January preparing 1095s for my largest client who is an ALA.

In fact there were a number of articles mid summer about the IRS making it a point to pursue and assess penalties on employers who are not issuing 1095s.

Also you will still be dealing with the issue of Premium Tax Credit overpayments and/or related refunds.

 

[Randall]

13 minutes ago, cbslee said:

The requirement to issue Form 1095 has not gone away. I know I will be  hard at work in late January preparing 1095s for my largest client who is an ALA.

In fact there were a number of articles mid summer about the IRS making it a point to pursue and assess penalties on employers who are not issuing 1095s.

Also you will still be dealing with the issue of Premium Tax Credit overpayments and/or related refunds.

 

Ok, thanks.

 

[BLACK BART]

20 minutes ago, cbslee said:

The requirement to issue Form 1095 has not gone away. I know I will be  hard at work in late January preparing 1095s for my largest client who is an ALA.

In fact there were a number of articles mid summer about the IRS making it a point to pursue and assess penalties on employers who are not issuing 1095s.

Also you will still be dealing with the issue of Premium Tax Credit overpayments and/or related refunds.

 

I know employers still have to make 1095s and I know some people still buying O-insurance have to settle up with  IRS for the over & under payments, but what I'm getting at is this: do WE still have to do anything else (make any marks anywhere on a tax return) if we aren't the unfortunate souls preparing those 8962s? 

[Tax Prep by Deb]

California will have the penalty mandate starting in 2020.  So we are not out of the woods yet!

[jklcpa]

The early draft of the 2019 1040 didn't have the checkbox to indicate full year coverage, but that doesn't mean that it won't be added to the final version

. 

[BLACK BART]

Yes, thanks Deb (and you too CBS) for that; I'm aware that several states are continuing on with the penalty (AR is not), but I was mainly interested in the IRS portion of it.   Don't know if you use ATX, but last year inside their 1040 "information input" we had to check a box indicating if clients had insurance for the year.  Of course (penaltywise) that wouldn't be necessary this time, but wondered if they would be asking us again to maybe check up on their 8962 clients.  Also since the penalty was killed off, but not O-care itself, are WE finally (except for 8962s) cut loose from the thing.

P.S. Good point about the 1095s Randall.  I have used those as backup for the credits too.

P.P.S.  to Judy -  I haven't seen the 2019 draft yet, but the 2018 didn't have a checkbox on the FORM either.  However, there WAS a checkbox inside the ATX "info input" section.  Thanks for the input.

[jklcpa]

5 minutes ago, BLACK BART said:

P.P.S.  to Judy -  I haven't seen the 2019 draft yet, but the 2018 didn't have a checkbox on the FORM either.  However, there WAS a checkbox inside the ATX "info input" section.  Thanks for the input.

The checkbox on the 2018 form was on the righthand side directly below the spouse's SSN.

[jklcpa]

If you want to take a look, Google "2019 draft 1040" and look for the link to IRS site. I'm on a tablet right now and can't post a link because the web address automatically goes to a download the draft form as a pdf.

[BLACK BART]

2 minutes ago, jklcpa said:

The checkbox on the 2018 form was on the righthand side directly below the spouse's SSN.

You're right - I missed it.  But didn't forget the main part - line 61 on 1040's schedule four.  Didn't hear any squawks back though (only had 3 or 4), so I guess as long as they sent the money all was okay.

[SaraEA]

I have also used the 1095s as documentation for the credits and listed them on the 8867.  Then a divorced preparer brought to my attention that carrying the insurance does not prove the child lives with you.  His children did not live with him but he had to insure them according to the divorce decree.  While the 1095 sent to him listed them as having full year coverage, it obviously did not prove their address.  Using the form made it easy for us in that we didn't have to ask the clients to scramble for additional proof, but when you think about it we were wrong.  Oops.

[BLACK BART]

3 minutes ago, SaraEA said:

I have also used the 1095s as documentation for the credits...but when you think about it we were wrong.  Oops.

Oops, indeed!  Don't know what our line of thinking there was - maybe "If he's insuring them, he surely must have them." But you're absolutely right; all that did was prove he had insurance on everybody.  I had a few divorce cases like that, but he could've been in Miami and the rugrats could've been in Nome.

[BLACK BART]

54 minutes ago, jklcpa said:

If you want to take a look, Google "2019 draft 1040" and look for the link to IRS site. I'm on a tablet right now and can't post a link because the web address automatically goes to a download the draft form as a pdf.

Okay, thanks.  I don't see the box anywhere, so maybe we're home free.

[DANRVAN]

14 minutes ago, BLACK BART said:

Okay, thanks.  I don't see the box anywhere, so maybe we're home free.

Since the individual mandate penalty is repealed for 2019 I would not expect to see the full year coverage check box for 2019.

[RitaB]

I believe the Shared Responsibility Payment is zero for 2019, not gone.  I am telling my clients there is a difference between setting the penalty at zero and the SRP being gone.  I can see it being a positive number again, and guess who will get blamed when they have to pay a penalty again?  "But you told me..." 

Yes, and I know you always listen to me and would have bought insurance if you had only known.  Right.  Nice try.  /s

I'm advising clients to research (call me) before they make decisions if the SRP is a factor in their decision making.

[BLACK BART]

1 hour ago, RitaB said:

...you always listen to me and would have bought insurance if you had only known...

 Your clients sound just like mine - they say (while polishing their halos) "Why, I certainly would have wanted to pay the right amount of tax on that..."

[Abby Normal]

5 hours ago, Davidjames3321 said:

Thanks for this information. It is useful

You are correct.

https://myatx.blogspot.com/2019/11/atx-2019-preview.html

[DANRVAN]

22 hours ago, RitaB said:

I believe the Shared Responsibility Payment is zero for 2019, not gone

Congress effectively eliminated the penalty by setting it to zero.   

2017 was the only year IRS could fully enforce it.

******************************************************

Sec. 11081. ELIMINATION OF SHARED RESPONSIBILITY PAYMENT FOR INDIVIDUALS FAILING TO MAINTAIN MINIMUM ESSENTIAL COVERAGE.

(a) IN GENERAL. Section 5000A(c) is amended—

(1) IRC in paragraph (2)(B)(iii), by striking “2.5 percent” and inserting “Zero percent”, and

(2) in paragraph (3)—

(A) by striking “$695” in subparagraph (A) and inserting “$0”, and

(B) IRC by striking subparagraph (D).

(b) EFFECTIVE DATE. The amendments made by this section shall apply to months beginning after December 31, 2018.