Feb 25

Obamacare tax hitting about 52% of filers

From one of my favorite political sites, LegalInsurrection:

H&R Block has found that a majority of ObamaCare customers, 52 percent, are being forced to pay back some of their subsidies during this year’s tax season. The average amount being paid back is $530, which, if you consider that to receive subsidies in the first place that you had to be below 300% of the federal poverty level, is a great amount.

“Remember when Obamacare supporters insisted it wasn’t a tax?” “Remember when President Obama repeatedly claimed Obamacare would save families $2,500 per year?”

I encourage you to go to the full site for further reading on it. (Could not get hyperlink to work at this time) http://legalinsurrection.com/2015/02/majority-of-obamacare-customers-will-owe-money-this-tax-season/#more-117605

Feb 22

New PowerPoint presentation available

I have uploaded a new PowerPoint presentation from I seminar I did last week. The presentation was over spousal rights and claims, mainly through death or divorce. The file should be in the media tab on this site.

Let me know if you have thoughts on the presentation or if you would like to set up an appointment on how a life changing event, such as a new marriage, divorce, or death, would affect your current estate plan (or lack thereof). I will gladly provide a complimentary one-hour consultation upon mentioning this post or the presentation.

Feb 20

Tax Rates for 2014 taxes

Tax cheat sheet 2014-2015_Page_1From my friends at Edward Jones, and more specifically, Adam Winters, Financial Advisor here in Altus, Oklahoma, a cheat sheet we use in the tax business for a quick reference to tax rates and amounts.

Feb 19

ObamaCare and taxes

I have not received a lot of questions about the new health care law and how it will affect taxes, but I have received many emails from area experts and the IRS itself about the expected problems related to tax filings.

On one website (I forget which), it estimated that about 6,000,000 individuals would have to pay all or part of their given subsidies back to the IRS because of wrong calculations when the insurance was applied for in late 2013. The IRS official estimate is about 4,000,000, which is still a vast number considering that this was thought to be “free” ”healthcare” by many.

Below is the latest email I received from the IRS about the law. I thought I should share with those in Altus and southwest Oklahoma that may be interested in how ObamaCare affects their taxes or estate plan.


The Affordable Care Act includes financial assistance in the form of the premium tax credit for eligible taxpayers with moderate incomes who purchase coverage through the Health Insurance Marketplace.

When you purchased coverage for 2014 through the Marketplace, you may have chosen to have the government send advance payments of the premium tax credit to your insurer to lower your monthly insurance premiums. At that time, the Marketplace estimated these credits based on information you provided about your expected household income and family size for the year.

If you chose to have advance credit payments sent to your insurer, you must file a federal income tax return, even if otherwise not required to file. You will need to reconcile these payments with the amount of premium tax credit you’re eligible for on your tax return. Receiving too much or too little in advance can affect your refund or balance due when you file.

For example, if you had certain life changes during the year and notified the Marketplace, the Marketplace should have adjusted the amount of the advance credit payments sent to your insurer accordingly. If you did not notify the Marketplace about these life changes, the advance credit payments may have been either too high or too low.

Advance credit payments that are lower than the amount of premium tax credit on your tax return will reduce your tax bill or increase your refund.

On the other hand, if your advance credit payments are more than the premium tax credit you are eligible for based on your actual income, you will need to repay the excess amount, subject to certain caps. This will result in a smaller refund or a larger bill when you file your return.  The repayment amount is based on your household income and family size. For more information on the repayment if your household income is less than 400 percent of the federal poverty line, the repayment amount is limited. Taxpayers with household incomes of 400 percent or more of the federal poverty line must repay all of the excess amount. See the instructions for Form 8962, Premium Tax Credit (PTC) for more information on the federal poverty line amounts.

Normally, taxpayers may owe certain penalties for late payments or underpayment of estimated tax. However, to help smooth the process for the first year of the Affordable Care Act, the IRS will waive these penalties for eligible taxpayers if they resulted from repayment of excess advance payments of the premium tax credit.  This has no effect on the fee individuals will pay if they chose not to buy affordable health coverage.

You must complete Form 8962 to claim the premium tax credit and reconcile your advance credit payments with the premium tax credit you are eligible to claim on your return. You should receive Form 1095-A, Health Insurance Marketplace Statement from your Marketplace by early February. This form provides information you will need when completing Form 8962. If you have questions about the information on Form 1095-A for 2014, or about receiving Form 1095-A for 2014, you should contact your Marketplace directly.