Form 1095 – UPDATE

The government has informed us that ONLY people who purchased health insurance through the AccessHealthCT marketplace (and therefore would have been a part of the tax subsidy program) will be receiving Form 1095A.

If you have been waiting for Form 1095 from your health insurance provider, they are not required to send one this year, but will be required to do so in 2016 for 2015.

We know new tax requirements can be confusing and we apologize for any confusion this may have caused.

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Update on Your Refunds, Connecticut

Due to the data breach at Anthem, and possibly other mitigating factors, taxpayer’s Connecticut refunds are being delayed in an effort to ensure that refunds are going to the correct person. You can always check the status of your refund by clicking the Where’s My Refund link (click here for Federal refunds and here for CT refunds) as long as you know your filing status (single, married filing jointly, etc) and the exact amount of your refund.

As a reminder, we are making returns for clients with Anthem health insurance a priority. If you are covered by Anthem, or have been in the past, please get your tax information to us as soon as possible so that we may file your return sooner rather than later.

The Commissioner of Revenue Services for Connecticut also has advised that in some cases, refunds may be issued as a check or debit card.

We at MJW EA & Company LLC are there for you this and every tax season; call with any concerns you may have.

MaryJoWalker.com

Attention Anthem Insurance Policy Holders:

Due to a data breach at Anthem, the Connecticut tax commission is urging taxpayers who expect refunds to file your taxes quickly. With Anthem being the largest provider in CT, we at MJW EA & Company LLC want our clients to be aware of the situation and what a breach like this means for you: the sooner your file your taxes and claim, the more assured you are of a) getting your refund without issue and b) the faster detection of fraudulent claims using your information.

We are happy to make your return preparation a priority if you are a part of this data breach.

If you have any questions or concerns, please do not hesitate to contact our office. We are, as always, here for you.

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401(k), HSA and Minimum Wage Updates for 2015

Along with getting everything organized for this year’s tax season, here is some information to be aware of for the beginning of the year:

  •  401k and 403b contributions have increased

The IRS 2015 maximum 401K contribution limits have been officially announced. Unlike with the 2014 maximum 401k contribution limits, there is an increase in limits once again!

  • The 2015 401K maximum contribution is $18,000!

The maximum 401K catch-up contribution per year for those over 50 years old will also increase to $6,000 in 2015 (up $500) over the standard contribution limit in 2014. This is the same for 403B’s and 457’s. The catch-up contribution is IN ADDITION TO the regular contribution limit.

  •  HSA contribution limit (employer + employee)

Individual: $3,350

Family: $6,650

  • SIMPLE IRA Contribution Limits and Deadlines
Year Maximum Contribution
(if under age 50)
Maximum Contribution
(if over age 50)
Contribution Deadline
2014 $12,000 $14,500 04/15/2015 (plus extensions)
2015 $12,500 $15,500 04/15/2016 (plus extensions)

 

 

Reminders for businesses

  • Due date of Business Entity Tax

For tax years beginning on or after January 1, 2013, the business entity tax is due every other year.  You will receive no reminder and this form has to be filed and paid electronically. For a calendar year filer, the filing periods will be as follows:

 

BIENNIAL PERIOD (2-Year Period)                   BET DUE DATE AMOUNT DUE:

Beginning 1/1/2013 – Ending 12/31/2014                       April 15, 2015            $250

Beginning 1/1/2015 – Ending 12/31/2016                       April 15, 2017            $250

http://www.ct.gov/drs/cwp/view.asp?a=1454&q=506078#1

 

  • Connecticut Annual Report

All registered businesses file an annual report. You have to file your Connecticut annual report using the Secretary of State’s online filing system. Connecticut Secretary of State mails a reminder to your Connecticut registered agent. Be certain you have a reliable and knowledgeable registered agent to assist in keeping your company in good standing.

 

  • All Connecticut employers are required to report all newly-hired employees within 20 days of hiring them.

Immediately report all new hires and rehires to the CT Department of Labor by going to: http://www.ctdolstate.ct.us/newhires/index.asp

 

  • Connecticut Minimum Wage Rates
    • Basic Minimum Rate (per hour) = $9.15
    • Premium Pay After Designated Hours = 40 hours
    • In restaurants and hotel restaurants, for the 7th consecutive day of work, premium pay is required at time and one half the minimum rate.

 

We are, as always, here to answer and assist with any questions or concerns you may have.

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Affordable Care Act and Taxes – What Are The Major Points?

  • Open enrollment on the health care exchanges runs from Nov. 15 to Feb. 15.
  • If you received subsidized insurance, new forms will become a part of your tax return filing process.
  • With IRS cutbacks and budgetary constraints, the IRS warns that only half of the callers may get through — and those who succeed may have to wait a half an hour or more.   Many will get a “courtesy disconnect.”

Some notes on penalties:

  • The penalties will rise sharply over the next couple of years – next year it will double – so if your strategy is to pay the penalty instead of getting the insurance, consider the following:
    • People who were uninsured for more than three consecutive months may owe something.
    • The IRS can deduct the penalty from any refund due. And if a taxpayer isn’t owed a refund — and fails to pay the penalty – the amount will accrue interest and roll over into the following tax years. The IRS could continue to deduct the growing amount from any refunds due for 10 years, which is how long the agency is allowed to collect payments.

Some Notes on Exemptions:

  • If you did not avail yourself of health insurance this year, you will have to prove that you have a valid excuse or you will be liable for a penalty.
  • The process for an exemption is time consuming, requiring mailing a signed paper application to the exchanges. These are processed manually, which can take a couple of weeks. Those exemptions include several hardships, such as foreclosure, the death of a family member, unpaid medical bills and eviction, as well as religious reasons for not using insurance.
  • Once an exemption is approved (and if it’s not, the applicant can appeal), a taxpayer is sent an “exemption certificate number,” which should be entered on the tax return.

The staff at MJW EA & Company LLC has spent a good deal of time attending educational seminars to prepare for these questions, issues and forms and will welcome your questions – with absolutely no “courtesy disconnect!”

MaryJoWalker.com