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ACA making taxes more complicated

1 year 8 months 3 weeks ago January 30, 2015 Jan 30, 2015 Friday, January 30 2015 January 30, 2015 4:50 PM in Health
Source: WBRZ
By: Alexa Vogue

BATON ROUGE - The Affordable Care Act is affecting the way many people file their taxes this year.

It's one of the biggest changes to the tax code in decades and it's confusing even the professionals.

The biggest change are two new forms: "1095-A," for people enrolled in Obamacare, and "8962" for those who were uninsured for all or a portion of last year.

"The shame of it is for a lot of people who have to fill it out it's people who don't have a CPA," said Ralph Stephens, Director with Postlethwaite & Netterville.

Not filling out the form that applies to you will cost you.

"There won't be any discussion about it," said insurance agent, Larry Koenig. "The government will take away your subsidy."

And that's not the only expense; those who went uninsured will pay a $95 fine or one percent of their income, whichever is higher. And if you pass again on coverage this year that number will dramatically increase, costing people either $325 or two percent of their income.

But not everyone will suffer. If you received health insurance through your employer or a private company the only change will be checking a box on your tax return.

"For most people if you have the minimum essential coverage you just need to check a box," Stephens said. "If you don't, it's pretty darn complicated and it's kind of a double whammy, because you don't have health insurance and now you need to fill out this form that's very complicated."

Accountants advise speaking to the IRS or hiring a professional if you have trouble.

Information on tax implications of the Affordable Care Act can be found at the ACA's website and the IRS website.

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