ACA Updates Tax Preparers Should Know About
As we make our way towards 2015, the Affordable Care Act and how it will affect the upcoming tax season seems to be clearer, according to Chuck McCabe, president of Peoples Income Tax and The Income Tax School. “While there are still some questions to be answered, there are a number of issues that have been settled and that tax preparers should be aware of as we head into tax season,” he said.
“There’s been quite a bit of back and forth about a disputed provision of the Affordable Care Act – the one where millions of Americans get tax subsidies,” McCabe said. “The dispute is whether people who qualify for tax credits and bought insurance through the federal exchange -- because their state did not set up a marketplace -- will receive them. The law says that you qualify for tax credits if you buy insurance on an exchange ‘established by the state.’ The dispute is in the part of the clause that ends in ‘established by the state.’” Read more on Accounting Today.