Business & Financial Solutions
Business & Financial Solutions
TAX HELP SERVICE AND PREPARATION
(855) 557-2222
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Affordable Care Act

Will Affordable Care Act Affect Income Tax Returns?

Business & Financial Solutions’ tax experts are available to help clients understand how the ACA might affect filing income tax returns. While this is a significant vehicle for generating revenue for the federal government, there may be tax challenges. But the tax ramifications do not concern the greatest part of American taxpayers. Still, our tax preparers are up-to-date on the changes in the tax codes. And our practice is to stay on top of tax changes through continuing education courses.

The passing of the Affordable Care Act has resulted in 21 new taxes associated with it. And those tax changes are generally credits for low-income Americans. But there are tax increases for taxpayers who earn $200,000 annually on an individual basis. Also, this applies to those with an annual family income of $250,000 or more. And small business owners with annual incomes over $250,000 can also expect increased taxes.

Obstacles With ACA

The IRS estimates that 85% of all Americans who already had health insurance will not face any significant change. And their taxes will remain about the same. But the remaining 15% will be affected by three essential components to the ACA. Those are the individual mandate; the employer mandate; and the tax credits associated with healthcare exchange plan premium costs. Incidentally, it does not matter if it is an individual, families or small business owner. Also, the mandates will affect Individuals who had previously invested in healthcare savings accounts (HSAs) and flexible savings accounts (FSAs). And they will also see new limits on healthcare-related tax deductions.

The biggest tax issue comes from the individual mandate. For instance, states that U.S. adults who can afford to do so must sign up for healthcare. And they are required to do so, either directly through an insurance company, or via a state or federal healthcare insurance exchange. However, if the premium from the lowest-priced bronze plan purchased through a health insurance exchange in his or her home state is more than 8% of the purchaser’s household annual income, an exception is granted.

Other Exceptions

There are other exceptions where the purchaser’s annual household income is below the IRS tax filing statutes threshold. Also, citizens may be granted exemption based on religious beliefs, not being a U.S. citizen, or being in prison. Or if you belong to an American Indian tribe you may get an exception. Further details may be found on the Internal Revenue Service website at http://www.irs.gov/Affordable-Care-Act/Affordable-Care-Act-Tax-Provisions.

Office Locations In Maryland

5100 Buckeystown Pike Ste 250, Frederick, MD 21704

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17 W Jefferson St Ste 007, Rockville, MD 20850

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Office Location In Virginia

7918 Jones Branch Drive, Ste 405, Tysons VA 22102

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Office Location In Texas

101 E. Park Blvd, Suite 600 Plano TX 75074

About BFS

Visit us in McLean Virginia, Frederick or Rockville, Maryland (Washington DC Metro Area)or Plano Texas

Phone toll free: (855) 557-2222
Fax: (240) 297-1054
E-mail: info@bfswebsite.com

Business & Financial Solutions is a tax and accounting CPA firm. Our offices are located in Fairfax County, VA, Collin County and Denton County, TX, Montgomery and Frederick Counties, MD. Our company is highly motivated in helping individuals and companies (private and non-profit) become successful in start-ups. BFS offers assistance with ongoing small to mid-size business management, consulting, accounting and a variety of tax services.

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