Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
01-21-2017 05:59 AM
I have already filed my taxes and am paying the individual mandate. My question is should I plan on filing an amended tax return on 2/15/17 or can I expect the IRS to apply any necessary changes automatically to conform with Trump's executive order?
01-21-2017 08:56 AM
My first reaction to such a question is the current president could only change current law. What you filed for and paid the mandate for was for 2016. The law has not changed for 2016. A signed executive order would deal with 2017. And further the executive order "could" gut ACA...could be the operative word.
Most likely there will be NO need to amend for that purpose.
01-21-2017 02:03 PM
Welcome to the community.
CYCLIST is correct. Any executive order will not affect your 2016 tax return so there will be no reason for you to amend it.
However, we can look and see if you qualify for an exemption from the penalty. There are several available. First, how much was your income for 2016? There are two income-based exemptions and then there's also the unaffordability exemption that we can look at which is based both on income and on the cost of your lowest cost Bronze plan from the marketplace. In addition, if you do not qualify for any other exemption, you can take the short-term coverage gap exemption which will automatically exempt you for two months. How long were you without health insurance?
If it turns out that you qualify for an exemption and you didn't claim one then you can amend your tax return to claim that exemption and get an additional refund.
Health insurance is one of my areas of expertise and I'll be glad to look at exemptions with you.
Senior Tax Advisor (Tampa, FL)
01-23-2017 11:51 AM
The Affordable Care Act will certainly be a hot topic during 2017 and our tax experts at The Tax Institute are closely monitoring the situation. Should action be taken to eliminate the ACA penalty for the 2016 filing year, the IRS will release guidance on how to proceed which could include amending returns.
It’s important to note that the executive order isn’t a law and executive orders can’t be used to repeal a law or make new law, not to mention it would have to retroactive to 2016 and there’s nothing in the executive order that states it is retroactive either. Everything is operating status quo right now and H&R Block will continue to follow the law as written until Congress passes a new law or the IRS releases guidance to the contrary.
01-31-2017 06:37 PM
Welcome to the H&R Block community.
Whether or not the executive order that you're referring to stands for 2017 is yet to be seen and there may very well not have a penalty for not having insurance next year, but anything that president Trump does this year does not affect the tax return you're currently filing because it is for 2016.
There are many exemptions from the penalty available and I'm sure that I can help you figure out if you qualify for one. Did you have insurance at all last year?
Senior Tax Advisor (Tampa, FL)