The new Affordable Care Act reporting requirements may complicate personal tax reporting. H&R Block CEO Bill Cobb says his firm expects confusion. This comment came during H&R Block’s September the 3rd meeting.
According to Cobb, tax filers may see added complexity from different aspects of the ACA:
New forms, based on income and household
No 1040-EZ filing for taxpayers receiving an advanced tax credit
Possible penalties for filers with no health coverage
H&R Block is preparing to handle the increased needs of filers. Cobb says, “We’re making smart investments now to ensure we’re prepared to serve our clients and meet their needs when they turn to us for help in understanding how the new law impacts them.”
The IRS instituted voluntary reporting for the 2014 tax year. The voluntary nature of this filing may cause more confusion. For example: George mentions to Sally that his employer provided reporting information. Sally hasn’t received anything from her employer. This may cause concern. Calls to employers, health coverage issuers, and tax professional may increase.
Jumping into the 2014 filing can help employees practice filing. That should make the mandatory participation in 2015 a little easier for everyone.