On a conference call reporting H&R Block’s quarterly earnings, CEO Bill Cobb predicts that “clients (will) begin to face complexities in their tax situations resulting from the Affordable Care Act (ACA).” Many taxpayers that use formerly used form 1040EZ to file their taxes will no longer be able to do so because of problems arising from the new forms the IRS released for ACA. Drafts of these new forms were released last July, followed by instructions for them earlier this month.
The instructions, running over 10 pages, gives an idea of just how complex the process of filling out forms 1094/1095-C. “As expected, the forms are very detailed and can present significant complexity, depending on a filer’s coverage status during the year, income level, and household composition.” Under the ACA, also called Obamacare, employers face many new complexities when filing their taxes. Businesses with more than 50 employees must offer health insurance to their employees or pay the fines for being non-compliant.
For guidance in making sure you are ACA compliant, contact us at PAYDAY to help your business offer benefits to your employees.