The future of Obamacare is always in question. So I am going out on a limb on this one. Usually I play it safe as a Monday morning quarterback when it comes to our tax updates but I am going deep on this one. What might we expect this upcoming year with the implementation of Obamacare.
More Reporting is Predicted in the Future of Obamacare!
The implementation of the future of Obamacare will include additional reporting requirements. Here is my big prediction; we might see an increase in the number of High Deductible Health Plans (HDHP); a bold prediction, I know. According to the previous link, for calendar year 2016, the IRS has raised the annual limitation on deductions for an individual with family coverage to $6,750.
If your employer (and therefore you) move to High Deductible Health Plans (HDHP) you get to fill out one more tax form with your tax return. This is regardless whether you take money out of it or not. How do you like those apples? Let me introduce you to Form 8889. You get to compute how much you are eligible to contribute. You also get to report how much was withdrawn for medical expenses. If you switched coverage part way through the year, all the HDHP limits are prorated. Okay, now don’t get too excited.
What Else Does the Future of Obamacare Hold?
In addition to my bold prediction on the future of Obamacare, we can expect to receive Form 1095-A/B/C as proof of health insurance coverage, or for purposes of computing any Premium Tax Credit on Form 8962, or a shared responsibility payment on Form 8965. Form 1095 was not fully available last year but most people can expect to receive one each year going forward. On the plus side, we in Massachusetts have had our 1099-HC in place for a long time now so we have become accustomed to the Mass version. This link will answer any questions you may have.
So there you have it, a short list of my predictions. Not that they will prove me to be anyone great, but I do want you to know that if you have any questions, you can call me, Alex Franch, BS EA , 781-849-7200, at Worthtax located in Quincy, Dedham and South Weymouth.
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