Federal Tax Returns And The Affordable Care Act: Understanding Your Electronic Filing Options
As we enter the middle of tax season, it’s important to note that the Affordable Care Act may have an impact on the filing of your tax return (click here for more information). While the filing process may be complicated, the IRS has several ways to file electronically quite easily. Four options are readily available: free tax return preparation, IRS Free File, E-File commercial software, and utilizing a tax professions.
For eligible taxpayers, two programs called Volunteer Income Tax Assistance ( “VITA”) and Tax Counseling for the Elderly ( “TCE”) are here to help with filing tax returns. To qualify for VITA, taxpayers must either earn less than $54,000 a year, have a disability, or have difficulty speaking English. While TCE is more open to various taxpayers, their focus is on those ages 60 years and older, particularly those with retirement and pension questions. For more information on VITA and TCE or for office locations, click here.
Did you know all IRS forms are available for free online? In addition, the IRS’ Free-File allows qualifying taxpayers to submit their own returns online using simple free software or fillable forms. For those earning under $62,000, software is free online for filing. For those earning above $62,000, forms are available for online completion. The caveat is that you must have a keen understanding of tax filing, as these forms only provide basic math and instruction and do not include State taxes. For information on both Free-File options, click here.
Once tax season nears, you may see an upswing of commercials for e-file software for filing taxes. Such software allows you to both file your taxes and pay your taxes online. There are a variety of options available, TurboTax being one of the most popular. Before purchasing such software, research to find the most affordable and easiest to use. You don’t have to be a tax preparing professional to e-file, the software steps are clear, especially for those with simple tax returns. Click here for more information. Should you have a more complex tax return (i.e., multiple employers, streams of income, etc.) it might benefit you to consult with a tax professional.
Professional tax preparers can vary from Certified Public Accountants to one-stop tax prep destinations like H&R Block. Each entity will have an IRS Preparer Tax Identification Number or PTIN, but there are many who specialize in various elements of tax filing. If you have particular needs for filing, it’s best to locate a tax preparer with that specific expertise. It is also important to ensure your tax preparer is credible and reliable, as well as capable for e-filing. A directory is available here [http://irs.treasury.gov/rpo/rpo.jsf], listing all qualified tax preparers and their specializations. Make sure you’re aware of all service fees involved, as well as the availability of the tax preparer, should any questions arise.
Tax season doesn’t have to be a stressful time, and there are many options and people willing to help as you ready your 2015 tax return. Visit http://www.irs.gov for more information regarding your federal tax return.
To learn more about ACA compliance in 2021, click here.
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