February 16, 2017
As we go through the remainder of this filing season here are some reminders of things to be aware of.
Premium Tax Credit and Advance Premium Tax Credit (Subsidy)
Remember that if an individual purchased their health insurance through a Marketplace during 2016 and received an advance premium tax credit (subsidy) they must complete the reconciliation portion of Form 8962 (Premium Tax Credit) and include it with the federal return.
If the Form 8962 is not included when it should be the processing of the federal return will be delayed and thus any refund associated with the return will also be delayed.
Also, the Form 1095-A (Health Insurance Marketplace Statement) is necessary to calculate the premium tax credit and the reconciliation on Form 8962. Individuals who purchased their health insurance through the federal or a State marketplace should have received their Form 1095-A by no later than early February.
W-2 Verification Code
In order to help fight tax identity theft the IRS started a pilot last year in an effort to validate the authenticity of W-2s. The IRS has expanded the pilot to now include 50 million 2016 Form W-2s. The affected W-2s will include a 16 alphanumeric verification code on Copies B and C.
If one of your clients’ W-2s includes this verification code you should enter it in the Crosslink program. By entering the code it will help to confirm that the Form W-2 information is valid. It is one more step that can help lessen the possibility of a delay in the processing of an individual’s return or receiving a notice for a mismatch of information later on.
See IRS Tests W-2 Verification Code for Filing Season 2017 for more information.
Important Reminders for the Upcoming 2019 Filing Season
November 28, 2018
2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018
2018 Depreciation Changes
October 18, 2018
2018 Tax Law Changes that are Directly Reported on Form 1040
October 3, 2018
IRS Tax Transcripts Changes
September 27, 2018
Revised 2018 Schedule A due to Tax Cuts and Jobs Act Changes to Itemized Deductions
August 29, 2018