On January 12th, The Center for Agricultural Law and Taxation at Iowa State University shared this message on their Facebook page:
- It appears that the IRS will be holding refunds on returns with American Opportunity Tax Credits until the 201519 cycle (Mid-May) so they can verify receipt of the 1098T from the colleges and universities. Taxpayers should be informed of the reason the refund is being held and that once the 1098-T from the accredited institution is verified, the refund will be released. Otherwise, they will receive a letter (4800C) to inform them if further documentation is required to allow the education credit.
Once again, another year is almost behind us and income taxes are approaching. Recent legislation has produced the Tax Increase Prevention Act of 2014, which retroactively extended more than 50 expired individual and business tax provisions through 2014. Please see our 2014 year-end client letter for further information.
To help you gather the tax information needed to prepare your 2014 personal income tax return, our office provides clients with a tax organizer. If you are a current client and you do not recieve one from our office, please contact us. In addition, we are providing a blank organizer here.
Affordable Care Act
Individual Mandate: Under the 2010 health care reform law, sometimes called Obamacare, beginning in 2014, there is an individual mandate requiring individuals and their dependents to have health insurance that is minimum essential coverage or pay a penalty unless they are exempt from the requirement. Many people already have qualifying coverage, which can be obtained through the individual market, an employer-provided plan or coverage, a government program such as Medicare or Medicaid, or an Exchange. For lower-income individuals who obtain health insurance in the individual market through an Exchange, a premium tax credit and cost-sharing reductions may be available to offset the costs.
Several new forms will be issued to taxpayers, primarily Form 1095-A, 1095-B, or 1095-C. These forms provide us with the necessary information to report your health insurance coverage, calculate any credit, and calculate any penalty that may apply. Because much of the reporting for 2014 will be voluntary for issuers, you may not receive Forms 1095-B or 1095-C, therefore we will need additional information. Please see the 2014 Health Insurance Information Worksheet.
We receive many questions throughout the year regarding noncash contributions and how to value items donated to charity. This donation value form is a great way to track and value those items.
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