A Barrington Accountant and the Affordable Care Act
If you have been paying attention to the country’s latest tax legislation, you may already know about the changes to the annual tax forms. This is part of the Affordable Care Act, which is also called “ObamaCare.” It makes health insurance more accessible to individuals and families with lower incomes. There is a lot you need to know about filing your taxes with the implementation of this act, and a Barrington accountant can help you prepare your tax return. That way, you can stay in compliance with the Affordable Care Act.
Barrington Accountant Tax Planning and the Affordable Care Act
To understand this, you need to take a look a real-life scenario. Suppose you bought a healthcare insurance policy through a federal or state exchange. Your policy may have offered financial help for your monthly premiums, and the Affordable Care Act is designed to make healthcare more affordable. A tax credit can help people with lower incomes buy a health plan.
There are certain requirements to be eligible for this credit. Here is a list of the following criteria:
- You bought health insurance through a federal or state exchange (called a Marketplace)
- You are eligible for a government plan, or through an employer
- Your earnings fall within the specified income limits
- You’re not filing a Married Filing Separate tax return
- You can’t be claimed as a dependent by another person
If you fulfill the above criteria, you will be eligible for a tax credit on your health insurance. Be sure to speak to a Barrington accountant for more details. This person will be your best resource in helping you understand what you qualify for under the Affordable Care Act.
The exchange will estimate the amount of premium tax credit for which you’re eligible, and it’s based on your family’s size and income. So, you need to report any changes to the marketplace – such as marriage, child birth, or a new mortgage. The exchange will send a statement that will elaborate on your premium amount and the credit payment for your healthcare, and you will receive it by January 31st.
When you prepare your tax return for the next year, you can deduct any advance payments you have received in the previous year. If you are eligible for a credit, it will be either refunded or deducted from your taxes.
How to Claim the Credit on Your Tax Return
If you are eligible for a tax credit, you can claim it in two different ways:
• You get all or part of the money you paid to the insurance company, so your monthly premium is lower.
• You can claim the entire credit when you file your tax return
The Affordable Care Act has changed the landscape of health insurance, and they can provide tax benefits for lower-income families. This has resulted in tax hikes for people with higher incomes. Even small businesses, which have average of over $250,000 a year, are being taxed more heavily.
Finding a Barrington Accountant for Understanding the Affordable Care Act
If you want to make sure you comply with the provisions laid out in the Affordable Care Act, it helps to hire a tax professional. A Barrington accountant will have a more thorough understanding of the tax provisions in the act, and he or she will make sure you get the most out of what it has to offer.
GLG Accounting has a team of expert CPA’s who stay up-to-date on the latest tax regulations, even those that are associated with the Affordable Care Act. Not only can we help you understand its details, but we can also offer you a level of service you can’t find in any other accounting firm.
Here at GLG, we are committed to our customers, and we are committed to the growth of our organization. That’s why we have tried to find the best CPA’s in the industry, and that’s how we’ve been able to give our customers the high-quality service that they deserve.
If you want to learn more about the Affordable Care Act and how it can affect your tax planning, get in touch with GLG Accounting. We are a Barrington accountant that can help you, and we would be happy to answer any questions you may have!