Middle Class America & Affordable Insurance: The Premium Tax Credit

Since providers of the ACA-compliant health insurance many Americans have received are busy working on e-filing their IRS-required ACA return before June 30, ExpressIRSForms is here to give some more information to the individual taxpayers required to obtain affordable health insurance.

The premium tax credit was introduced by the IRS in January of this year. It’s meant to give middle-class Americans tax benefits which will help make it easier to find and purchase affordable health insurance.

Premium Tax Credit Eligibility
In order to be eligible for a premium tax credit:

• Your household income has to be at least 100% the federal poverty line (FPL), without exceeding 400% of that line.
• You’ll need to file a joint income tax return if you’re married, with certain exceptions for victims of domestic violence and spousal abandonment.
• You must be enrolled in a “qualified health plan” through an Affordable Insurance Exchange.

If someone else is able to claim you as a dependent, you’re not eligible for the premium tax credit. You’re also not eligible if you are eligible for other qualifying coverage, like Medicare, Medicaid, or employer-sponsored coverage.

How Much is the Tax Credit?
Your premium tax credit amount will generally be equal to the difference between the premium for the “benchmark plan” and your “expected contribution.”

• Your expected contribution is a specified percentage of your household income. For the tax year 2015, this percentage ranges from 2.01% of income (families at 100% of the FPL) to 9.56% of income (families at 400%). 
• A benchmark plan is a plan that is the second-lowest-cost plan. The plan must also cover your family at the “silver” level of coverage.

Keep in mind that this credit is capped at the premium for the plan the family chooses, so no one will receive a credit that is larger than the amount they pay for their plan.

Important Premium Tax Facts

• The premium tax credit actually applies to a broad range of middle-class families: the income range of 100% to 400% of the FPL roughly translates to apply to families of four who made between $23,850 to $94,400 in 2015 and $24,250 to $97,000 in 2016.
• Older Americans who face higher premiums because they’re not yet eligible for Medicare will receive a larger tax credit since the amount of the credit is directly tied to the amount of the premium.
• The premium tax credit is fully refundable, and advance credit payments are made by the Department of the Treasury directly to the insurance company to help with the cost of monthly premiums.

CPAs, service providers, and applicable large employers who still need to e-file their ACA return with the IRS can do so quickly and easily through their ExpressIRSForms account! If you have any questions about getting started, just give us a call at (704) 684-4751 or send us an email to support@ExpressIRSForms.com.

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Ace Adventures: Paper Filers, Start Your Engines!

“Oh, good, you’re here! It’s me, Doc! Things are getting pretty crazy here in ExpressIRSForms, what with the ACA deadline at the end of this month and everyone still being a little unsure about these forms altogether. We don’t want another surprise visit from Confusion on on our hands. Come on down to the square, everyone’s waiting for Ace to come out and tell us what we need to do next!”

“In fact, no one’s around! Where is everyone? It’s almost eerie how quiet it is.”

BANG

“Did you hear that?? That sounded like a gun! We’d better get moving; someone might be in trouble! Heck, Ace could be in trouble! I don’t know if that boy’s bullet-proof or not…”

“What the -- the racetrack? What in the sam hill is going on here? Oh, I suppose there’s no use in asking you, you just got here. We gotta find Ace. He’ll know what’s up. Let’s see about getting inside. There you are!”

“Hey, Doc! What’s up?” Ace, who had just walked out of the racetrack, asked.

“You know I hate those jokes.”

“What jokes?”

“The ‘what’s up, doc?’ one -- oh, never mind that now. What happened to everyone? Confusion hasn’t got them has she?”

“Once I explained to the crowd,” Ace continued, “that e-filers had until June 30, and told them that was just the beginning of the e-filing over paper filing benefits, most of them figured it would be best to check out ExpressIRSForms or ExpressACAForms to e-file their ACA forms. Then the paper filers hurried off to work on finishing their forms by the 31st, and the rest of us came here for the big race today. I tell ya, I don’t know how that tortoise keeps beating that hare but--”

“Whoa, before you get going there Ace,” Doc interrupted, “you wanna give the kid here a little recap of your speech? I’m afraid I made us a little late.”

“Oh, of course! Well, the paper filing deadline for ACA forms 1094 and 1095 is May 31, meaning copies need to be stamped and mailed by that day to the IRS. Now, if you have over 250 forms to file, you’re required to e-file. That was the point that got a lot of people who thought they could paper file. Although, why you’d wanna paper file 250 forms, who knows.

“Anyway, paper filing is great and all if you’re a traditionalist, but you’re way less likely to make an error e-filing. Plus, e-filing’s much more secure and helps the whole filing process go more smoothly, especially when it comes to correcting any errors. So, that’s fine if you want to paper file, but more time and security makes e-filing the sweeter deal.”

That’s right, any questions you have regarding ACA e-filing can be directed at us, the ExpressIRSForms support team, AKA Ace’s sidekicks. You can reach us by phone (704-684-4751) and live chat Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT. We also answer emails 24/7 at support@ExpressIRSForms.com.

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Tomorrow's Another Tax Deadline...Are You Ready?

Tomorrow’s a big day for the IRS and, quite possibly, a big day for you! That’s because March 31, 2016, is the deadline for not one, not two, but three types of 2015 IRS tax forms: 1099s, W-2s, and ACA Forms.

Now, personal income tax filers of these forms - if you happen to have stumbled upon this blog - tomorrow’s not your deadline; that’s not until April 18 (April 19 in Maine and Massachusetts). Tomorrow is the deadline for businesses and other payers to complete their copies of the 1099s and W-2s and e-file them with the IRS. It’s also the deadline to have all ACA Forms 1095-B and 1095-C postmarked and sent to the appropriate recipients.

If you are a business owner and this is all news to you, well sit back and pay attention, because we’ve got a few things to go over:

What’s Due and By When?

• Form 1099: If you have to file 1099 forms (of any kind) for your payees, these must be e-filed by 11:59 p.m. (your time) on March 31, 2016.
• Form W-2: If you need to file W-2 forms for your employees, these must be e-filed by 11:59 p.m. (your time), March 31, 2016.
• ACA Forms: If you have to report health insurance coverage offered to your employees or recipients, the recipient copies must be postmarked and mailed out on March 31, 2016.

Are There Any Penalties for Filing Late?
Is the pope Catholic?

But, in some seriousness, it’s the IRS, so of course there are penalties for filing late. For 1099 and W-2 forms, depending on when you get your corrected forms filed determines your total penalty:

• $50 per form if you file correctly within 30 days of the due date, with a maximum penalty of $532,000 per year ($186,000 for small businesses)
• $100 per form if you file correctly after 30 days but before August 1, with a maximum penalty of $1,596,500 per year ($532,000 for small businesses)
• $260 per form if you file after August 1 or not at all, with a maximum penalty of $3,193,000 per year ($1,064,000 for small businesses)

You may also incur a penalty by filing your forms on paper, even if your forms are in by tomorrow. Since the paper filing deadline was February 29, any paper forms filed now are considered late, so you must e-file by March 31 to have your forms in on time. If you’ve never e-filed before, there’s no need to alert the IRS you’re doing so now.

As for the ACA forms, this year only, the IRS is forgiving any late filing penalties as long as you can prove you made every effort to file on time. Next year, you won’t be so lucky. Also, next year, this deadline will be moved back up to its original date, January 31, and your ACA forms must be e-filed by March 31 (just like the 1099s and W-2s).

What Can I Do to Make Sure I’m Not Late?
If you’re not sure you’ll be able to get your 1099s and W-2s in on time, you can e-file Form 8809 with ExpressIRSForms. Form 8809 is an IRS extension form used for 1099s, W-2s, and various other information returns. If you e-file this, you’ll get an automatic 30 day extension to e-file your forms. And if you end up not using it, you won’t be penalized for having filed one.

As for your ACA forms, just make sure to have them postmarked by tomorrow. If you don’t think you’ll be able to do that, you can have ExpressIRSForms do it! Just make sure you get in your postal mailing order by 5:00 p.m. EDT tomorrow so we can guarantee it’s postmarked on the 31st. Although the IRS won’t know these forms are late unless one of your recipients reports not having gotten theirs, it’s important to get these out sooner rather than later since your recipients need them to complete their tax returns.

What If I Have More Questions?
That’s what our friendly and helpful support team is here for! We’re here until 6:00 p.m. EDT today to answer any phone calls (704-839-2270) and chats coming in, then we’ll come back tomorrow at 9:00 a.m. and stay as late as we need to help you get your filing complete. You can also utilize our 24/7 support email by sending in your question to support@expressirsforms.com.

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Ace Adventures: A Confusing Deadline

Ace, standing tall at his podium, began to address the crowd that started to gather ‘round.

“By the last day of this month,” Ace continued, “you must mail the recipient copies of your 1095-Bs and 1095-Cs to all applicable recipients.

“For my ALEs, that means, uh… That means…” Ace trailed off.

“Well? What does it mean??” A voice from behind Ace questioned.

“And I’ve taken everything you know about the March 31st deadline right out of that thing in your head you call a brain,” Confusion said as she broke into another fit of evil laughter, and Ace fell to his knees in soon-to-be defeat.

“Hey, wait!” called a voice from the crowd. “I know about that! Wasn’t Ace talking about it earlier this year?”

“Oh, yeah,” began another bystander. “The recipient deadline that’s usually going to be when all the other forms are due to payees or employees. You know, like the 1099s and W-2s.”

“Right,” continued the first crowd member, “and if you offer your employees healthcare coverage throughout the year, this is the form you report that to the IRS on!”

“Wait, how did you know that?!” Confusion exclaimed. “My spell should still be clouding your mind!”

“Oh, it’s not your fault, Confusion,” Ace said as he stood up. “I’m sure it’s an excellent spell. But you can’t keep this brain down for very long. No, not with all of my brain exercises.

“But your most fatal mistake was made when you decided to attack me here. For knowledge can be shared more easily than you think, especially when one chooses to speak up.

“Thank you, citizens. I couldn’t have done it without you! As for you, Confusion, be gone. Your spread of ignorance is not welcome here!”

Don’t have time to mail your forms? Select the postal mailing option when you e-file your 1094s and 1095s with ExpressIRSForms and we’ll send them out for you! And if you need help e-filing your ACA forms, give us a call. We’re available Monday through Friday from 9:00 a.m. to 6:00 p.m. EST at (704) 839-2270. We also offer 24/7 email support at support@ExpressIRSForms.com.

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ExpressIRSForms: The Features

If you’ve already started filing, you’re probably already familiar with some of the excellent features ExpressIRSForms has to offer. But if you’re still window shopping for your perfect 1099, W-2, and ACA e-filing match, allow us to share with you a few reasons why you’ve found the right website:

Live Support & Webinars
At ExpressIRSForms, we want you to have every opportunity to understand exactly what you’re filing with the IRS and why. That’s why we have a plethora of help text, how-to videos, online webinars, and live support options that cover 1099s, W-2s, ACA forms, W-9s, and e-filing in general. You can access our live support by phone (704-839-2270) or live chat Monday through Friday, 9 a.m. to 6 p.m. EST, or by email 24/7 at support@expressirsforms.com.

State Filing
For you 1099 and W-2 filers, we don’t just offer federal filing! If you’re required to file information returns with your state, you can more than likely do so through our program! We offer filing for 34 of the 37 states that require it, and we’re working on getting you those other five. Just enter in your state information and select the Federal and State Filing Package before you transmit, and your forms will be sent everywhere they need to go.

E-sign W-9 Free
Before you file your 1099s, W-2s, or ACA forms, do you need your payee’s tax identification number (TIN)? Lucky for you, ExpressIRSForms has just unveiled free e-signing for Form W-9. Your request will be sent securely via email to your payee(s); they’ll sign it electronically then email it back to you. Save time and paper with this simple process!

Postal Mailing
You decided to e-file for a reason: to not deal with paper forms! Deal with even fewer by selecting ExpressIRSForms’s Postal Mailing package on your checkout screen. Now instead of having to print and mail your recipient copies yourself, we’ll send them out for you by the next business day.

High Volume Filing Capabilities
While we certainly appreciate our small business clients, we want to make e-filing just as easy for the businesses who need to file hundreds or thousands of forms. That’s why we’ve made our program high-volume-filing friendly with features like our Bulk Upload, Postal Mailing, and Bulk Pricing Discounts!

Error Checks
As you’re filing, and before you transmit, with ExpressIRSForms, you’ll encounter a few error checks within the program. We’ve put these in place to make sure your forms are free of common mistakes and filed correctly the first time around.

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The Affordable Care Act Forms Are Here!

We’ve talked and talked and talked about them, and they’re finally here! You can now e-file your Affordable Care Act forms through ExpressIRSForms.com!

And even bigger news (for us anyway): ExpressIRSForms is the first e-filing program to be authorized by the IRS for these forms. Although the deadlines for the ACA forms have been extended, you probably won’t want to procrastinate with these things. So why not go ahead and get started with a company you can trust?

To start filing your Affordable Care Act Forms 1095-B or 1095-C, just go to www.ExpressIRSForms.com. Then, click “Sign In” or “Register” to either log into or create your free account. Once you’re at your Dashboard, click “Start New Form,” then the ACA icon. Our program will take you through whichever form you need to file -- first determining that for you if you need! -- before allowing you to transmit your forms directly to the IRS.

And in addition to the ACA forms, we offer e-filing for Form 1099 and Form W-2, their corrections, and Extension Form 8868, as well as FREE e-signing for Form W-9! So what are you waiting for? Get started filing now!

And if you have any questions along the way, our friendly, US-based customer service is here to help! We’re available by phone and live chat Monday through Friday from 9 a.m. to 6 p.m. EST at 1-704-839-2270; and we offer 24/7 email support through support@expressirsforms.com.

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ACA Forms: The Benefits of E-filing with ExpressIRSForms

We’ll be back to your regularly scheduled blogs after this final ACA-themed one! We’ve gone over the basics of the ACA forms, and delved more into Forms 1095-B and 1095-C. We’ve even talked about what your employees and recipients need to know about the Affordable Care Act information returns.

But even after all of the long talks we’ve had, what real reason do you have to e-file your ACA returns this year and in years to come? Well, this is the blog post where we give you a few reasons to file with us, starting with…

The 250 Rule
If you’re filing more than 250 of either Form 1095-B or 1095-C, the IRS requires you to e-file your forms. Although the IRS will tell you they do recommend e-filing regardless of how many forms you’re filing, because e-filing is a speedier process and leaves less room for error. And since the IRS recommends us too (we were one of the first e-filing services to be IRS-authorized for e-filing ACA forms!), it only seems right that you use ExpressIRSForms to e-file.

No Form 1094
When you paper file Forms 1095-B and 1095-C, you have to include a transmittal Form 1094-B or 1094-C. Think of it as a cover letter that summarizes all of the information in the forms you’re filing. When you e-file, there’s no need for this form since you’re not sending a stack of papers through the mail. Fill out fewer forms: e-file with ExpressIRSForms.

It’s Pretty Easy...
Like our other tax products, it was important to us that our clients have the simplest filing experience ever with ExpressIRSForms. Our program will walk you through your forms step by step, providing helpful hints and guidelines along the way. We’ll also perform an error check before you transmit your forms to make sure everything gets filed correctly the first time around.

...And It’s Free!
That’s right! It’s absolutely free to e-file the optional 2014 ACA information returns with ExpressIRSForms. It’s always free to create an account with us, and since these ACA forms are brand new, we thought our users might like a free trial with them. Just create your account, choose the form you’d like to fill out, and see how easy it is to e-file with us at no cost to you. Your recipient information will also be saved securely in your account with our cloud-based software, so in a month or so when you do your 2015 ACA returns, you can complete your e-filing in just a matter of clicks!

Lastly, The Service
At ExpressIRSForms, our customer service is second to none. We’re available by phone all year (not just during tax season!), Monday through Friday, from 9 a.m. to 6 p.m. EST at (704) 839-2270. We also offer live chat through our website during these hours and email support at support@expressirsforms.com 24/7. Our US-based headquarters in Rock Hill, SC offers complimentary support in English and Spanish. Whatever your e-filing need, we’re here to help!

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Affordable Care Act Forms: An Overview

Coming this tax season to the best* IRS-authorized e-filing service (ExpressIRSForms) are the newly required Affordable Care Act Forms 1094-B, 1094-C, 1095-B, and 1095-C. These forms were created by the IRS so that insurance providers (including government-sponsored programs, eligible employer-sponsored plans, and individual market plans) could report certain health care coverage information to the IRS and to their recipients.

So what are these forms all about anyway? Well, ExpressIRSForms is here to answer your questions. Our next few blogs will be ACA-themed to get you as prepared as possible for filing these new forms! Today, we’ll start with the basics and a general overview of the forms.

Form 1094
Form 1094 is the transmittal form, and will normally only be filled out by you if you’re paper filing. Most e-filing services (ExpressIRSForms included) will automatically fill out Form 1094 for you and transmit it to the IRS along with your other forms. Form 1094 contains a general summary of the information about the minimum essential health care coverage you offer found on the 1095 forms you submit.

Form 1095
You can think of a 1095 form as a W-2 for health care coverage: it breaks down the health care coverage offered to and received by your recipients by month for the previous year, and you’ll send a copy of it to your recipient while the original goes to the IRS. All of your 1095 forms are sent together to the IRS along with the 1094 transmittal form.

B or C?
The letters attached to the numbers 1094 and 1095 on these forms help the IRS to identify your contractual relationship with your health care recipients. If you’re a health insurance issuer or carrier, you’ll file Forms 1094-B and 1095-B. If you’re an Applicable Large Employer (ALE), you’ll file Forms 1094-C and 1095-C. ALEs are employers with at least 50 full-time employees or full-time equivalents; these employers must offer at least the minimum essential coverage of health care to their employees according to the Affordable Care Act.

If you want to go ahead and get started working with new ACA forms, you can use ExpressIRSForms to begin filing the optional 2014 year absolutely free! And since our software is cloud-based, all of your contact information will be saved in your Address Book; that way, in a few months when you’re working on your 2015 returns, you can be finished in a matter of clicks.

And if you have any questions about the ACA forms or e-filing for any of our other information returns, feel free to reach out to us! We’re available by live chat via our website and by phone at (704) 839-2270, Monday through Friday from 9 a.m. to 6 p.m. EST. We also offer 24/7 email support at support@expressirsforms.com.

*Study results may be biased

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ACA Forms: What Your Employees Should Know

When we talk about the new Affordable Care Act IRS Forms 1094 and 1095, we tend to be focused a lot on the employers and the providers of minimum essential health care coverage. It’s understandable; a lot of things are changing this year, which means a lot of new responsibilities for providers and employers.

But what about the employees? What do your employees need to know about the new ACA filing requirements?

The more an employer can do to educate their employees about the forms and their purpose, the less likely they are to deal with confused and frustrated employees. You may even want to consider sending out a memo or having a meeting to explain these forms and how they’ll affect your employees.

Your employees should know that the ACA requires all employers with 50 or more full time employees are required to provide affordable health coverage to their employees, and that employees will receive a form (Form 1095-B or Form 1095-C) in January, around the same time as their Form W-2. Let them know that this form indicates that they had health care coverage for all 12 months, unless they declined enrollment or an error has been made. Tell your employees who is responsible for handling errors should they occur. If they do, that person will need to update the employee’s copy of Form 1095, as well as the copy transmitted to the IRS.

You can stress the importance of these ACA forms without stressing out your employees. Make sure there’s someone on your staff - and it can be the same person who handles errors - who can answer questions your employees may have when going over their ACA forms.

And if you need any help with ACA forms or keeping stress-free when you file them, don’t hesitate to reach out to us. ExpressIRSForms is here for you every step of the way: just give us a call at (704) 839-2270 Monday through Friday from 9 a.m. to 6 p.m.; live chat us through our website; or send us an email 24/7 at support@expressirsforms.com!

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