Affordable Care Act


January 2018



On December 22, 2017, after much, well-publicized legislative skirmishes, President Donald Trump signed into law H.R. 1, otherwise known as the “Tax Cuts and Jobs Act.”   Provisions affecting individuals are generally effective beginning December 31, 2017 and expire on December 31, 2025.  Most business-related provisions are permanent and are effective beginning December 31, 2017.

This new law is, by all accounts, the most significant revisions to the U.S. tax code since 1986, affecting almost all individual and business taxpayers.   Our firm’s general assessment of the new law will therefore be a two-part series: this first part covers changes to individual taxpayers, and the second part will cover changes to business taxpayers.

How Much Is My 2016 Shared Responsibility Payment?

The Affordable Care Act of 2010 introduced the shared responsibility payment on non-exempt American citizens who do not meet certain healthcare insurance minimum coverage requirements. The IRS will not consider a return complete and accurate if the taxpayer does not report health care coverage for the year, an exemption or a payment.

Taxpayers must either:

  • Have qualifying health care coverage for every month of 2016 (including for dependents);
  • Qualify for an exemption from the requirement to have health care coverage; or
  • Make a “shared responsibility payment.”

This shared responsibility payment increases annually, and for the 2016 tax year, is the greater of:

Tax Provisions Of The Trade Preferences Extension Act of 2015

Tax Provisions Of The Trade Preferences Extension Act of 2015As well as the trade provisions that were the bill’s focus, the Trade Preferences Extension Act of 2015 (H.R. 1295), signed into law in June of 2015, contains provisions regarding tax law. The Act revises several Tax Code provisions, and extends a number of trade agreements as well as programs like trade adjustment assistance (TAA) and the Health Coverage Tax Credit (HCTC). TAA consists of programs that provide federal job training and assistance to workers, firms, farmers and communities that have been adversely impacted by foreign trade.

2016 Impact Of Provisions Of The ACA On Businesses

2016 Impact Of Provisions Of The ACA On BusinessesJust as it does for employees, the Affordable Care Act (“ACA”) contains benefits and responsibilities for employers. The size and structure of an employer’s workforce is primarily determinative of how ACA rules apply to a particular covered situation. This information only applies if a business owner has employees, Otherwise, if there are no employees, other tax provisions, such as the insurance provider fee may affect the business enterprise.

An employer’s size is determined by the number of its employees. Employer benefits, opportunities and requirements are dependent upon the employer’s size and the applicable rules. Generally, an employer with 50 or more full-time employees or equivalents will be considered an applicable large employer.

What Are 2016 Form 1095-B and Form 1095-C?

What Are 2016 Form 1095-B and Form 1095-C?

Close up business man signing contract making a deal, classic business

Form 1095-B

Form 1095-B is a health insurance tax form which reports a taxpayer’s type of coverage, dependents covered by the insurance policy, and the period of coverage for the immediately prior year. This form is used to verify on a tax return that taxpayers and their dependents have at least minimum qualifying health insurance coverage. Those who have health insurance that meets the standards of the law may receive Form 1095-B directly from their health care insurer and from employers who have less than 50 full-time employees (small businesses).

Tax Issues For Small Business Owners In 2016

Each year brings a new opportunity for progress and ways to increase income for small business owners. New tax laws appear annually and often present challenges to customary profitable legal ways of doing business. Staying informed of all of these changes requires the assistance of an experienced and knowledgeable tax professional.

  1. Detailed Reporting of Employee Healthcare Coverage 

2016 Affordable Care Act Changes For Individual Taxpayers

The Affordable Care Act (“ACA”) imposes the requirement that all Americans acquire health insurance that qualifies as “minimum essential coverage” under the Act. Otherwise, taxpayers may have to make a shared responsibility payment to the IRS when they file their tax return in April. The ACA also allows for a tax credit known as the premium tax credit for taxpayers that purchase health coverage through the Health Insurance Marketplace.

Known as the individual shared responsibility provision, it requires a taxpayer, his or her spouse, and their dependents to have health insurance minimum essential coverage for the entire reporting year. Most taxpayers already have qualifying health care coverage, and will simply report this fact on their return by checking a box.