No Health Coverage? What That Means for Your Taxes

So here's a fun topic.  Fun, like standing in line at the DMV fun.  But may be worse.

Here is important information about the fees and exemptions related to not having health insurance coverage. If you don’t have qualifying health coverage, you may need to pay a fee with your federal tax return or get a health coverage exemption.

IRS Can Help if W-2s Are Missing

IRS Tax Tip 2015-15, February 9, 2015 

In most cases you get your W-2 forms by the end of January. Form W-2, Wage and Tax Statement, shows your income and the taxes withheld from your pay for the year. You need your W-2 form to file an accurate tax return. If you haven’t received your form by mid-February, here’s what you should do: 

• Contact your employer.  Ask your employer (or former employer) for a copy. Be sure that they have your correct address.
  
• After Feb. 23.  If you can’t get a copy from your employer, call the IRS at 800-829-1040 after Feb. 23. The IRS will send a letter to your employer on your behalf. You’ll need the following when you call:
  
  • Your name, address, Social Security number and phone number;
  • Your employer’s name, address and phone number;
  • The dates you worked for the employer; and
  • An estimate of your wages and federal income tax withheld in 2014. You can use your final pay stub for these amounts.
    
• File on time.  Your tax return is normally due on or before April 15, 2015. Use, Form 4852, Substitute for Form W-2, Wage and Tax Statement, if you don’t get your W-2 in time to file. Estimate your wages and taxes withheld as best as you can. The IRS may need more time to process your return while it verifies your information. If you can’t finish your tax return by the due date, you can ask for more time to file. Get an extra six months by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You can also e-file a request for more time. You can do this for free with IRS Free File.
  
• Correct if necessary.  You may need to correct your tax return if you get your missing W-2 after you file. If the tax information on the W-2 is different from what you originally reported, you may need to file an amended tax return. Use Form 1040X, Amended U.S. Individual Income Tax Return to make the change.

Note: Important New Health Insurance Form. If you bought health insurance through the Health Insurance Marketplace, you should have received a Form 1095-A, Health Insurance Marketplace Statement, by early February. You will need the new form to help you complete an accurate federal tax return. You will use the information from the Form 1095-A to calculate the amount of your premium tax credit. The form is also used to reconcile advance payments of the premium tax credit made on your behalf with the amount of premium tax credit that you are eligible to claim.

If you did not receive your Form 1095-A, you should contact the Marketplace from which you received coverage to get a copy. You are not required to send in proof of health care coverage, including Form 1095-A, to the IRS when filing your tax return. However, it’s a good idea to keep these records on hand to verify coverage. Additional information about Form 1095-A is available onIRS.gov/aca and on HealthCare.gov/taxes.

You can visit IRS.gov/forms to view, download or print the tax forms you need right away. To get IRS forms by mail go to IRS.gov/orderforms and place an order.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Negotiation Do’s and Don’ts

We live in a world of negotiations.  We negotiate the price of our car, where to eat lunch, and we even negotiate with our kids to get them to eat their vegetables.

The same is true in your business.  You may feel like you are living in a flea market, since you are constantly:

·         Negotiating price breaks with your vendors

·         Negotiating salaries with your employees

·         Negotiating lease terms with your landlord

·         Negotiating contracts on just about anything

         Negotiating doesn’t have to be a painful experience.  You simply need some basic ground rules and the do’s and don’ts before beginning the process.

• DON’T – Just wing it!  Even though you feel pretty good about your people skills, you still need to have a clear idea of your objectives; otherwise, you won’t know what you are negotiating for.

• DO – Identify your goals before negotiating.  You need to know your bottom line, so you will have clear parameters and even know when to walk away.

• DON’T – Try to beat your opponent into submission.  Even if you have all of the leverage, you may ultimately turn the other party off.  Most people would rather walk away with their dignity, than a small sum they had to beg for.

• DO – Look for the win-win.  This will keep the process moving forward and give you the opportunity for working with this person again in the future. 

• DON’T - Negotiate against yourself. If you make an offer, wait for the response. Be careful in using the phrase, “Why don’t you throw out a number?” Usually, the first amount mentioned by a seller is the amount that’s ultimately agreed upon.

• DO – Ask for what you want.  This means being specific about what you want and don’t want.

• DON’T – Take things personally, even if the other person gets personal.  Stay calm during the process and avoid losing your temper if negotiations don’t go your way.

• DO - Present your side with clear and concise facts.  Act with confidence, even if you have to “fake it, till you make it.” 

• DON’T – Assume that there will be zero tax consequences from a sale or purchase. 

• DO – Meet with your CPA (we hear Hardee Accounting is pretty good) to determine what, if any, tax implications there are to making this deal.