The Internal Revenue Service has issued new draft instructions, notices and a publication to help taxpayers deal with the Affordable Care Act.
The draft instructions were included in two forms: Form 8962 “Premium Tax Credit” and Form 8965 “Health Coverage Exemptions.” While still clearly in draft form, the guidance is firming up and the drafts should be instructional for the final version.
In addition, the IRS released Publication 5172 to assist taxpayers in determining whether they qualify for an exemption from the individual mandate for health coverage or from paying a penalty. This is important, because under The Affordable Care Act, individuals must have qualifying health insurance coverage for each month of the year, have an exemption from it, or make an “individual shared responsibility payment” when filing their federal return.
Other resources for taxpayers are available at:
http://www.irs.gov/uac/Individual-Shared-Responsibility-Provision
https://www.healthcare.gov/exemptions/
As always, please consult your professional advisor prior to taking any action. Smith & Howard can be reached at 404-874-6244.