14 THE QUEENS COURIER • MARCH 16, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM “Over Two Decades Of Personalized Service” [email protected] E-Z Tax Service of NY Inc. ������������������������������������������������������������������������������������ 347-438-1844 Income Tax Preparation ���������������������������������������������������������������������������������� TAX TIPS Obamacare repeal and your taxes BY JOHN SAVIGNANO Repealing Obamacare isn’t so easy…as Republican lawmakers are fi nding out. Much of the health reform law is popular with voters, and GOPers in Congress don’t want to be blamed for mishandling the issue. Meanwhile, taxpayers are fi lling out returns amid confusion over the individual mandate. We’ll try to clarify things for taxpayers and preparers. Th e individual mandate is still the law, so folks who went without coverage last year and don’t otherwise qualify for an exemption will owe a tax penalty. But IRS is backing off enforcing the rule in response to an executive order. It won’t reject returns that fail to report required health coverage status. Taxpayers must generally check a box on their returns indicating full-year coverage, claim an exemption or pay a fi ne. Th e Service had put in place a system this year to reject 2016 returns of fi lers who failed to indicate their health coverage status. IRS changed its mind aft er President Trump issued an executive order on Obamacare that directs federal agencies to use their authority to reduce potential burdens. As in past years, refunds will be paid even if a return is silent on the issue of coverage. Some have interpreted IRS’ action to mean that taxpayers needn’t fully comply with the health law. Th is is incorrect. Th e insurance requirement is still in eff ect. Th is means that preparers should continue to help their clients abide by the law. Filers with full-year coverage need only check a box on their returns. Th ose without coverage should review the exemptions before paying the fi ne. Among the exemptions: People for whom health coverage is unaff ordable, meaning the minimum net cost of premiums exceeds 8.13 percent of household income; fi lers with household incomes below the thresholds for fi ling a return: $10,350 for singles, $13,350 for heads of household and $20,700 for joint fi lers; those who went without coverage for periods of less than 3 months; and folks that can show that a hardship forced them to go without coverage. People who got subsidies for buying coverage on an exchange, take note: You must fi le a tax return to fi gure the amount of health premium tax credit you’re actually entitled to. Th e exchange should have already sent you a Form 1095-A, reporting the names of family members with health coverage as well as the amount of monthly premiums and any advance credit payments. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. For questions, dial 718- 707-0955. Call Now & End Your Tax Nightmare! �������������������������������������� �������������������������������������� �������������������������������� �������������������������������������������������� ������������������������������������������ Co-Author of the best selling book “Breaking the Tax Code” �������������������������������� �������������������������������� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor ���������������������������������������������������������������� ������������������������������������������������������
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