Latest ACA Changes & Policy Updates

Stay up-to-date with important information about the Affordable Care Act

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TAX PRO CENTER

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FORM 1040 UPDATE

Another checkbox year for your clients with full year coverage for non-marketplace insurance. Read more...

Updates Impacting Individual Tax Payers

 

Affordable Care Act Phase-in Penalty Increase

The penalty for not having minimum essential coverage is phased in over a three year period (2014-2016) and will increase for Tax Year 2016.
 

  • 2014 Percentage of Household Income 1%
  • Flat Dollar Amount (1/2 for individuals under 18 years old): $95 per adult

 

  • 2015 Percentage of Household Income 2%
  • Flat Dollar Amount (1/2 for individuals under 18 years old): $325 per adult

  • 2016 Percentage of Household Income 2.5%
  • Flat Dollar Amount (1/2 for individuals under 18 years old): $695 per adult

 

 

Changes to Who Can Receive Premium Tax Credits

Eligibility for the premium tax credit is tied to whether you have income between 100% and 400% of the Federal Poverty Level.  These amounts change on an annual basis.

  • One Individual: $11,770 (100% FPL) - $47,080 (400% FPL)
  • Family of Two: $15,930 (100% FPL) - $63,720 (400% FPL)
  • Family of Four: $24,250 (100% FPL) - $97,000 (400% FPL)

 

 

Changes to Coverage Exemptions

Several changes have been made to the types of coverage exemptions available for 2015. Some coverage exemptions have been added, clarified or are no longer available. For more information visit Healthcare.gov

 

 

Additional Documents added in Tax Year 2015

There are two new source documents that will be provided to taxpayers: Form 1095-B (Health Coverage Statement)
and Form 1095-C (Employer-Provided Health Insurance Offer and Coverage).

Updates Impacting Small Business Tax Payers

 

Business

Businesses with 100 or more full-time employees must offer insurance or face a penalty beginning on 1/1/15 or face a penalty when filing 2015 taxes. 
 

Businesses with 50-99 full-time employees must offer insurance beginning on 1/1/16 or face a penalty when filing 2016 taxes. 
 

Note: Deferral of mandate from Tax Year 2015 to 2016 only applicable if the employer did not reduce the size of the workforce to qualify for transition relief. Information reporting requirements apply even if the employer does not begin facing penalties until Tax Year 2016.

 

 

Source Documents

Beginning in Tax Year 2015, large employers (with 50 or more employees) must issue Form 1095-C, Employer-Provided Health Coverage. If the large employer is not self-insured, the employees may also receive a Form 1095-B from their insurance companies.

Beginning in Tax Year 2015, small employers who self-insure must issue Form 1095-B, Health Coverage. Small employers who do not self-insure are not required to issue any form.

See Previous ACA Policy Revisions.

 

February 10, 2014

The U.S. government delayed another element of the Affordable Care Act. Under this latest announcement, medium-sized businesses will not be subject to the employer mandate (that requires them to provide health insurance to employees or face a penalty) until 2016.

 

January 10, 2014

The U.S. Treasury Department announced that hours of volunteer firefighters and emergency medical personnel at governmental or tax-exempt organizations will not be required to be counted when determining full-time employees.

Read More

 

December 19, 2013

The U.S. Department of Health & Human Services announced that individuals who had their healthcare coverage cancelled will be exempt from the individual health plan mandate. These impacted individuals will be eligible for a hardship exemption and will be able to enroll in catastrophic coverage.

Read More

 

November 27, 2013

U.S. Department of Health & Human Services: For small businesses in states with a SHOP Marketplace that's run by the federal government, we are making changes to make sure that you can take advantage of SHOP coverage and the tax credit as soon as  possible.

Read More

 

July 2, 2013

the Obama Administration delayed the mandatory employer insurance and reporting requirements by one year, or until January 1, 2015. The January 1, 2014 deadline for individuals to be insured remains unchanged.