Tax season blues due to Obamacare, links to filing help

interview with CPA Lori Anderson

American wage-earners are supposed to have their W-2s and 1099s in hand now, but there are a few more government forms you might need.  Denver area CPA Lori Anderson visited “First Take with Lando and Chavis” to decipher some of the new 2015 tax filing issues we might be facing.

“With the Affordable Care Act, you have extra lines on your 1040 asking ‘Did you have health insurance in 2014?’ and ‘Were you eligible for the credits.'”  Anderson described a common scenario: “‘I can’t afford health insurance.  I’ll just pay the $95 penalty,’ but there’ s complex computation.  It’s the greater of $95 or one percent above a certain threshold for each filing bracket that you’re in.”  (She makes it sound easy, right?)

The most important new form is the 1095-A, which you get from your health insurance provider.  ”It’s coming from the health insurance provider for a lot of self-employed people or those who are not working for a W-2.  And two weeks from now, you will get a corrected 1095-A.”

And a heads up from Anderson about the coming hike in penalties.  ”For the 2015 tax year, the penalty goes to $395.  For 2016, it’s going to go to $695.”  FYI, the deadline to sign up for health insurance is coming up on February 2015.

Due to congressional funding restrictions, the IRS has reduced it’s phone help capacity, so long delays are expected in this tax-filing season.  Anderson anticipates that private tax services and accountants will be extremely busy between now and April 15.   This would not be the year to wait until the last minute.

The Denver Asset Building Coalition provides free tax-filing help for low and middle income residents at locations in Denver, Aurora, Lakewood, Golden and Conifer.

ColoradoVITA provides income tax filing assistance to veterans and the elderly who qualify.