TagTaxpayers

Even With Extension, You Have to Pay Your Taxes Today!

By: Amanda Wilson

You only have to turn on your radio, TV, or log onto social media today to be reminded that today is the dreaded TAX DAY. If you find yourself in the position of seeking an extension to file your taxes, do not forget that you must still pay your taxes today. The extension only gives you extra time to file your return, it does not extend the deadline for paying.

Affordable Care Act: Premium Tax Credit and Individual Shared Payment Reporting – Are you ready?

Glass globe By:  Joe Zitzka

As we roll into tax filing season, have you considered how to handle the new Affordable Care Act reporting requirements?

For the 2014 tax year, taxpayers will now be required to report health care coverage on their tax returns.

There are two new reporting requirements that will impact many U.S. Individual Income Tax Returns for the 2014 tax year.  The individual shared responsibility payment and the premium tax credit will present new challenges for taxpayers.  Taxpayers will now be required to determine if they have qualifying health insurance or qualify for an exemption.  Taxpayers will also have to determine whether they qualify for the premium tax credit.

When preparing your Form 1040 for the 2014 tax year, taxpayers (unless an exemption applies) must confirm that they either have health insurance coverage throughout the year or make a payment with they file their federal income tax return.

In general, you may qualify for the premium tax credit if:

  1. You buy your health insurance through the Health Insurance Maketplace;
  2. Are not eligible for coverage through an employer or government plan;
  3. Are within certain income limits;
  4. Do not file a married filing separate return (unless you meet certain limited requirements); and
  5. Cannot be claimed as a dependent by another person.

Considering a Future Like-Kind Exchange of Real Property?

By:  Amanda Wilson

If you are considering a future like-kind exchange of real property, proceed with caution.

The tax code allows taxpayers to exchange property that they hold for investment or use in business for property of a like-kind without having to recognize the tax gain on the exchange.  The gain is instead deferred until the taxpayers dispose of their replacement property.  While like-kind exchanges are a popular tax planning tool, they have become the target of proposals aimed at raising tax revenues.  Most recently, the Obama Administration has proposed limiting the amount of capital gain that can be deferred from a like-kind exchange of real property to $1 million per taxpayer per tax year.  If this proposal is enacted into law, it is expected to apply to like-kind exchanges completed after December 31, 2014.  So, if a like-kind exchange of real property is on the horizon for you, be wary and consider acting sooner rather than later.

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