Thursday, February 25, 2016

W-2? 1099? And now, introducing the 1095-C!

Every year in late winter and early spring, you receive formal looking statements from various sources that are either paying money to you or receiving money from you in payment of certain types of expenses, such as mortgage interest and taxes.  Now with the next stage of the Obamacare regulations, if you are an employee you will be receiving a new IRS form - the 1095-C.  Everyone is required to obtain health insurance.  If you do not do so, you may have to pay a "individual shared responsibility payment", which is the bureaucratic doublespeak for a penalty. Here is the IRS Tax Tip that explains what this form does and what you need to do when you receive it:

Here’s What You Need to Do with Your Form 1095-C

This year, you may receive one or more forms that provide information about your 2015 health coverage.  These forms are 1095-A, 1095-B and 1095-C. This tip is part of a series that answers your questions about these forms.

Form 1095-C, Employer-Provided Health Insurance Offer and Coverage Insurance, provides you with information about the health coverage offered by your employer.  In some cases, it may also provide information about whether you enrolled in this coverage.

Here are the answers to questions you’re asking about Form 1095-C:

Will I get a Form 1095-C?
  • You will receive a Form 1095-C – which is a new form this year – if you were a full time employee working for an applicable large employer last year. An applicable larger employer is generally an employer with 50 or more full-time employees, including full-time equivalent employees.
  • Even if you were not a full time employee, you will receive form 1095-C if your employer offered self-insured coverage and you or a family member enrolled in that coverage.
  • You might get more than one Form 1095-C if you worked for more than one applicable large employer last year.
How do I use the information on my Form 1095-C?
  • This form provides you with information about the health coverage offered by your employer and, in some cases, about whether you enrolled in this coverage.
  • If you enrolled in a health plan through the Marketplace, the information in Part II of Form 1095-C could help determine if you’re eligible for the premium tax credit. If you did not enroll in a health plan through the Marketplace, this information is not relevant to you.
  • If there is information in Part III of Form 1095-C, review this information to determine if there are months when you or your family members did not have coverage. If there are months you did not have coverage, you should determine if you qualify for an exemption from the requirement to have coverage. If not, you must make an individual shared responsibility payment.
  • You are not required to file a tax return solely because you received a Form 1095-C if you are otherwise not required to file a tax return.
  • Do not attach Form 1095-C to your tax return - keep it with your tax records.
What if I don’t get my Form 1095-C?
  • You might not receive a Form 1095-C by the time you are ready to file your 2015 tax return, and it is not necessary to wait for it to file.
  • The information on these forms may assist in preparing a return.  However, you can prepare and file your return using other information about your health insurance.
  • The IRS does not issue and cannot provide you with your Form 1095-C. For questions about your Form 1095-C, contact your employer. See line 10 of Form 1095-C for a contact number. 
Depending upon your circumstances, you might also receive Forms 1095-A and 1095-B. For information on these forms, see our Questions and Answers about Health Care Information Forms for Individuals.

Thursday, February 11, 2016

Your Social Security Benefits May be Taxable

Passing along another Tax Tip from the IRS:


When are your Social Security Benefits taxable?

If you receive Social Security benefits, you may have to pay federal income tax on part of your benefits. These IRS tips will help you determine if you need to pay taxes on your benefits.
  • Form SSA-1099.  If you received Social Security benefits in 2015, you should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of your benefits.
  • Only Social Security.  If Social Security was your only income in 2015, your benefits may not be taxable. You also may not need to file a federal income tax return. If you get income from other sources you may have to pay taxes on some of your benefits.
  • Free File.  Use IRS Free File to prepare and e-file your tax return for free. If you earned $62,000 or less, you can use brand-name software. The software does the math for you and helps avoid mistakes. If you earned more, you can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms. It’s best for people who are used to doing their own taxes. Free File is available only by going to IRS.gov/freefile.
  • Interactive Tax Assistant.  You can get answers to your tax questions with this helpful tool and see if any of your benefits are taxable.  Visit IRS.gov and use the Interactive Tax Assistant tool.
  • Tax Formula.  Here’s a quick way to find out if you must pay taxes on your Social Security benefits: Add one-half of your Social Security to all your other income, including tax-exempt interest. Then compare the total to the base amount for your filing status. If your total is more than the base amount, some of your benefits may be taxable.
  • Base Amounts.  The three base amounts are:
    • $25,000 – if you are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from your spouse for all of 2015
    • $32,000 – if you are married filing jointly
    • $0 – if you are married filing separately and lived with your spouse at any time during the year
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your TaxpayerBill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
Additional IRS Resources:
IRS YouTube Videos:

Tuesday, February 9, 2016

REMINDER TO EMPLOYERS: REPORT NEW HIRES TO STATE


Here is a reminder to all Pennsylvania employers from the state Department of Labor and Industries about your obligation to report the hiring of new employees:

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 along with Pennsylvania's Act 58 of 1997 requires all employers to report certain information on their newly-hired employees to a designated state agency. As an employer, you are a key partner in ensuring financial stability for many children and families across the Commonwealth.

New Hire Reporting is designed to increase child support collections from non-custodial parents and parents who change jobs frequently, thus securing a better life for children. As an employer, your role of reporting newly-hired employees is critical to the success of the program. By reporting your newly-hired employees within 20 days of hire, you aid the Commonwealth of Pennsylvania in speeding up the child support income withholding order process, locating non-custodial parents to expedite collection of child support and in many cases, establishing paternity.

The New Hire program has experienced not only significant increases in child support collections from non-custodial parents but also savings in unemployment compensation, workers' compensation and public assistance programs through fraud detection. As a result, Pennsylvania is committed to this endeavor and expects continued diligence from the employer community to aid in this endeavor. For more information on this law, please visit the Pennsylvania State Law.

If you are a custodial or non-custodial parent needing information on Pennsylvania legislation and programs, please follow the link here to the PA Child Support Program website within the Pennsylvania Department of Human Services.

There are multiple ways to report your new hires to the Pennsylvania New Hire Reporting Program. The preferred method is through timely and secure electronic reporting.

Electronic Reporting:
Please use one of the two secure electronic methods listed below for reporting new hires to the Program.

Through the Pennsylvania CareerLink® website, www.pacareerlink.state.pa.us.

Scroll down the page to the “Report New Hires” box (or press the “Online Services” link at the top menu navigation bar to go directly to the box) and press the link “Report New Hires Now,” to proceed to the Program homepage.

Through Secure File Transfer Protocol (SFTP) to the Pennsylvania Department of Labor & Industry server at https://dliftp.state.pa.us.

If interested in using SFTP, please notify the Pennsylvania New Hire Reporting Program by submitting an email to the Program at RA-LI-CWDS-NewHireSF@pa.gov, subject line: “SFTP Credentials – PA”.

Data File Format:
Data files must adhere to the layout specification for each respective file type listed at the Pennsylvania CareerLink® website’s New Hire Reporting Program Information page. At that page, press “Examples and Instructions” under the “Choosing the Best Method for Reporting New Hires as a PA CareerLink®-Registered Employer” section of the page, to view the data file specifications.

For more information on timely and secure new hire reporting, please visit www.pacareerlink.state.pa.us, or call the Pennsylvania New Hire Reporting Program at 1.888.724.4737 or 800-932-0211.


Do Your 2015 Federal Taxes for Free

Passing this along from our friends at the IRS -

Do Your Federal Taxes for Free

You can prepare and electronically file your federal taxes for free using IRS Free File. It is fast, safe and easy to use. IRS Free File does the hard work for you with either brand-name tax software or online fillable forms.

Here are six facts that you should know about Free File.

1. Free Options for All. If you make $62,000 or less – as do 70 percent of Americans – you can choose easy-to-use software to do your taxes and e-file for free. If you make more than $62,000 can use FreeFile Fillable Forms, the electronic version of IRS paper forms. Either way, it’s free.

2. Free File Does the Hard Work. IRS Free File is a partnership between the IRS and tax software manufacturers that make their products available for free. You don’t need to be a tax expert. The software will help find tax breaks you may be able to claim but might overlook, such as the EarnedIncome Tax Credit. The software asks the questions; you provide the answers. It will choose the right tax forms and do the math for you. Free File can also help with the healthcare law tax provisions.

3. Free File on IRS.gov. Access IRS Free File on IRS.gov/freefile to avoid any charges for preparing or e-filing your federal tax return. Once you choose a Free File company, you’ll go to their website to prepare, print and e-file your federal tax return.

4. All Forms and Schedules are Free. Whether you file Form 1040 EZ, Form 1040A or Form 1040, all are free. If you have a mortgage interest deduction, children in college or made money in the stock market, the Free File software will complete the forms and schedules you need.

5. Free Extensions. If you can’t make the April 18 deadline (April 19 if you live in Maine or Massachusetts), you can use Free File to request an automatic six-month extension. Making the request is easy and free through IRS Free File. Just look for “free extensions for anyone” in the company offers. Remember, this is a six-month extension of time to file your tax return, not to pay your tax. If you think you owe, make an estimated payment with your extension request. Tax software will help you make this payment, or you can view other paymentoptions at IRS.gov.

6. Use IRS E-file. Remember, the fastest way to get your refund is to combine e-file with directdeposit. If you owe taxes, you can e-file now and set up an automatic payment on any day until the due date. To view your payment options visit IRS.gov/payments.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your TaxpayerBill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

IRS YouTube Videos: