New for 2018-2019
Affordable Care Act
With the implementation of the Affordable Care Act, in 2014, new tax forms are being sent to some clients, and there are new form filing requirements. Please check our client newsletter for details.
Health Care Tax Forms At a Glance
New Forms Under Affordable Care Act
If you enrolled in the Health Connector or Connector Care Plan, you will receive a 1095-A for your Federal return and a 1099-HC for your Mass return.
If you enrolled in Commonwealth Care, you will receive a 1095-B for your Federal return and a 1099-HC for your Mass return.
If you enrolled in MassHealth, you will receive a 1095-B for your Federal return and a 1099-HC for your Mass return.
If you enrolled in insurance through your employer with less than 50 employees, you will receive a 1095-B for your Federal return and a 1099-HC for your Mass return.
If you enrolled in insurance through your employer with more than 50 employees, you will receive a 1095-C for your Federal return and a 1099-HC for your Mass return.
If you enrolled in a plan you directly purchased through a health plan insurer, you will receive a 1099-HC for your Mass return.
Residential Energy Efficient Property Credit
This credit equals 30% of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property. Labor costs are included when you calculate this credit. And, this year, there is no cap on the amount of credit available, except on fuel cell property. Be sure you check the manufacturer’s tax credit certification statement before purchasing these improvements.
Standard deductions for 2018
Joint return or surviving spouse $24,000
Single $12,000
Head of household $18,000
Married filing separately $12,000
Additional Standard Deduction for taxpayers age 65 or older or blind.
Standard mileage rates 2018
54.5 cents a mile for business miles
18 cents a mile for medical miles
18 cents a mile for deductible moving miles
14 cents a mile for charitable miles
Standard mileage rates 2019
58 cents a mile for business miles
20 cents a mile for medical miles
20 cents a mile for deductible moving miles
14 cents a mile for charitable miles
Refundable Credits
Certain tax credits are Refundable credits, whereby they can be refunded to you if the credit exceeds your tax liability. Meaning, that if the tax credit brings you to zero tax, you can get the balance of the credit refunded to you. Nonrefundable credits can bring your tax liability to zero, but the balance of the credit is not refundable to you.
American Opportunity Tax Credit
The 2009 Recovery Act made some changes to the education credits:
1. As of 2009, called the American Opportunity Tax Credit
2. AGI phase out range to $80,000-90,000 for Single or Head of Household and $160,000-180,000 for Married Joint
3. Maximum credit is $2500
4. Credit is available for the first 4 years of post-secondary education
5. 40% of the credit is refundable
6. Required course materials are now included along with tuition and fees
