Are you ready for some changes? Forty-six tax code changes, to be exact. For your 2015 tax preparation, the Affordable Care Act (ACA), the most sweeping health insurance legislation in American history, is also bringing the biggest tax code changes in years. But what does this mean for you?
Most people filing will see few significant effects. There are changes in the classification of the highest earning brackets, and some other modifications most Americans probably won’t notice.
Overall, the tax documents will look similar to years past, with the exception of the ACA section having to do with subsidies for health insurance coverage. People who aren’t covered by an employer’s health care plan will see notable changes that can potentially impact their refunds. There are also changes in penalty amounts for individual and household members without coverage for any period of the year.
But what does all this mean for businesses providing coverage to their employees? The good news is that major ACA tax changes for businesses won’t go into effect until next filing season, because of the delay in implementation of the employer mandate to provide coverage for their employees.
However, now that the mandate is in effect, it’s important to be proactive not only in investigating coverage options, but also in collaborating with your legal and accounting departments to make sure your 2015 tax documents are in order when you need them. Accountants are projecting a difficult year for individuals filing their 2014 taxes, due to IRS budget cuts and ACA complications.
It will almost assuredly be more complex next year for businesses subject to the employer mandate. Many are still confused about ACA requirements, and there are also numerous challenges to the law that could change those requirements in the coming year.