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In addition to questions about the 1095 forms, consumers are asking tax preparers at H&R Block about qualifying for exemptions from the penalty for not having insurance, said Lindsey Buchholz, a tax attorney at H&R Block's Tax Institute.
Date: Feb 17, 2016
Category: Business
Source: Google
25 ways the uninsured can dodge health care penalty
You send in your application and documentation. If it is approved, they send you an exemption certificate number. That number you have to put on your return, said Lindsey Buchholz, principal tax research analyst at the Tax Institute at H&R Block.
When you sit down to do your return at the last minute, if youre realizing youre stuck, dont know whats happening or have an unexpected result and need more help, the best thing to do would be to file for an extension, said Lindsey Buchholz, a principal analyst at H&R Block.
There are some complicated cases. For instance, some married people may be able to claim head of household if they are separated and living with a child, says Lindsey Buchholz, lead analyst with the Tax Institute at H&R Block. If you dont know which one to pick, the IRS offers some guidance he
Trying to game the system is generally a futile exercise, experts say. The marriage penalty applies when a married taxpayer filing a joint return ends up paying more taxes than two individuals would earning the same amount of income, says tax research analyst Lindsey Buchholz of H&R Block.
If you owe taxes and don't file by April 18th, the Internal Revenue Service socks you with a 5 percent per month "failure-to-file" penalty. That's on top of the "failure-to-pay" penalty, which comes to 0.5 percent per month, plus interestcurrently about 4 percentthe IRS charges on the outstanding taxes you owe. "They will also charge you interest on the penalties," says Lindsey Buchholz of The Tax Institute at H&R Block.