If you try to file your federal tax return as early as possible each year, be prepared for a slowdown in the 2013 filing season.
It seems the new Affordable (Health) Care Act may complicate filings for taxpayers affected by it. Among other things, they simply may not receive all the tax documents related to the new health care act by the end of January 2014, as has been required in past years.
Here are some effects expected from the new law:
- Every household seeking a tax credit for insurance premiums paid into the new health insurance exchange program now will be required to file a full tax return. The requirement applies even if the taxpayer’s income is below the regular threshold for filing a return.
- It is going to take additional new health information to file an accurate return.
- Parents will be responsible for any health premium penalty for a dependent claimed on their tax return.
- State and federal tax rules may differ, further complicating the tax returns.
One more common benefit also will be affected. Flexible Spending Account (FSA) contributions into your employer pretax health reimbursement plan will be limited to $2,500 for 2013.
Ask us at EricJohn Limited or your tax professional to steer you through the ins and outs of the new Affordable Health Care Act.