Wednesday, February 15, 2017

IRS quietly adjusts tax requirements in having to pay Obamacare mandate to follow President Trump's Executive Order

In a victory for personal choice and civil rights, the IRS has quietly adjusted their tax policies to not require individuals to fill out Line Item 61 which declares that you either have health insurance, or are required to pay the Obamacare mandate, in accordance with an Executive Order signed by President Donald Trump during his first days in office.

Called the Executive Order Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal, and signed on the very first day of Trump's inauguration, this Order repeals the forced tax mandate on individuals who either cannot afford, or choose not to get health insurance that coincides with the original Affordable Health Care law's mandates.

Image result for obamacare this is going to hurt
How much difference does a single line on a tax form make? For Obamacare's individual mandate, the answer might be quite a lot. 
Following President Donald Trump's executive order instructing agencies to provide relief from the health law, the Internal Revenue Service appears to be taking a more lax approach to the coverage requirement. 
The health law's individual mandate requires everyone to either maintain qualifying health coverage or pay a tax penalty, known as a "shared responsibility payment." The IRS was set to require filers to indicate whether they had maintained coverage in 2016 or paid the penalty by filling out line 61 on their form 1040s. Alternatively, they could claim exemption from the mandate by filing a form 8965. 
For most filers, filling out line 61 would be mandatory. The IRS would not accept 1040s unless the coverage box was checked, or the shared responsibility payment noted, or the exemption form included. Otherwise they would be labeled "silent returns" and rejected.
Instead, however, filling out that line will be optional. - Reason
In tax filings for 2016, the Obamacare mandate rose to either 2.5% of household income, or $695 per person, dependent upon which was higher.

0 comments:

Post a Comment