Based on several
recent conversations with both members and non-members, it is my impression
that most individuals are unclear as to whether or not they will be subject to
the shared responsibility payment in 2017 and subsequent years. There are many
areas of the Tax Reform and Jobs Act (TRJA) that are not explicit, the Affordable Care Act (ACA) is
not one of them. Here is what you need to know.
2017 tax year – The ACA
remains in effect and all individuals must indicate, whether they had
minimum essential coverage, qualified for an exemption from the coverage
requirement or will make a shared responsibility payment (IRS.gov). If subject
to the “penalty”, the calculated payment will be due with the tax return. If
taxpayers omit this information, electronically filed returns will be rejected
and paper filed returns suspended. In short, you can no longer file without
disclosing this information and taxpayers are obligated to follow the law as
written in 2010.
2018 tax year – Contrary to popular opinion, for 2018 the ACA
remains in effect. Taxpayers will still need to account for the ACA
shared responsibility payment when making health care decisions in 2018. Filing
requirements will remain the same as the preceding tax year.
2019 tax year and beyond – This is when it happens folks; there is no
longer a shared responsibility payment (penalty) for failure to obtain minimum
essential health coverage. The ACA remains in effect, but the penalty now
calculates as $0.00, rendering it null and void.
Please email FinancialServices@yankeefarmcredit to learn more.
