Major Changes to U.S. Tax Code

The implementation of the Affordable Care Act may affect your 2014 federal income tax return.

The highly trained staff of H&R Block in Claremore stands ready to welcome you and discuss in detail your 2014 income tax returns. (Back row, L to R): Don Capps, Marilyn Davis, Bob Brun (franchisee), Henry Harrison, Robert Capps and Jerry Carrier. (Front row): Wilma Benefield, Mary Kranig, Pam Clark, Pam Ziriax and Dawn Lund.

It’s a new year and filing 2014 income tax returns will soon be upon each of us.

Did you know that the largest change in Federal Tax Code in 20 years may affect your 2014 federal income tax return? Changes in the Tax Code commencing in 2014 will be simple for some, but for others the change will be more complex, says Bob Brun, H&R Block’s Claremore franchisee and a Certified Public Accountant.Brun explains that most of the changes are due to the Affordable Care Act, commonly known as Obamacare. “For those who did not have a filing requirement in prior years may now have to file a tax return,” he said. “Those who purchased health insurance through a state or federal market exchange will be receiving a 1095-A from their respective exchanges and will be required to reconcile their 1095-A to their ‘household income’ as identified through their income tax return and may include the income of their dependents, whether claimed or not claimed.”

Also, those who did not obtain health insurance during 2014 will be required to file a return to determine if any penalties apply. Some individuals currently believe that the penalty for not acquiring a health insurance policy in 2014 is a flat $95 for a single taxpayer. However, the ACA regulations for single individuals states that the penalty is the greater of $95 or one percent of household income, with a maximum ceiling penalty per non-compliant taxpayer. The compliance complexity, reconciliation process and penalties are increased in both 2015 and 2016.

H&R Block, one of the world’s largest tax services and currently celebrating its 60th anniversary, has been preparing for over a year to implement the new tax code changes and train its tax professionals to understand the Affordable Care Act regulations and how they apply to each taxpayer. If the proper ACA forms and computations are not in the tax return, a taxpayer may find a refund being delayed by the Internal Revenue Service for 45 to 60 days. H&R Block offers you peace of mind with experienced and trained preparers in taxation, who know the ACA as it pertains to federal income taxation. Brun said the H&R Block offices in Claremore and Owasso will be holding a free ACA consultation service on January 8 in order to help taxpayers determine their respective ACA situations prior to preparing their 2014 tax return. He encourages people to stop by and ask their healthcare questions prior to preparing their 2014 tax returns.

Brun owns and operates the Claremore office of H&R Block and in partnership with Pat Etzkorn, owns and operates the Owasso H&R Block office. “Service to our clients in preparing tax returns starts with the highly-trained, professional tax associate completing a thorough tax return interview with the client,” Brun said. “We make sure the tax client understands how their return was computed, why the results of the return may vary from what the client expected the outcome to be, and what tax alternatives the taxpayer has to affect their current and future tax returns.”

Both the Claremore and Owasso offices are open year-round to serve your needs. Taxpayer tax issues don’t end April 15, Brun emphasized. “You are welcomed at both Block locations. We accept appointments, drop offs and walk-ins.”

For more information, contact

H&R Block

www.hrblock.com 

About Author Jim Butcher

Jim Butcher is a retired, award-winning newspaperman who continues to write as a freelance writer and photographer. He owned the Tulsa Front Page weekly and was executive editor to Neighbor Newspapers' 13 metro newspapers. Currently, he writes for Value News and has become a paid assignment screenwriter, along with a University of Oklahoma professor who wrote Brad Pitt's first feature film. His award-winning screenplay is on the historical Osage Indian Murders of the 1920s.