3 Factors That Will Affect Your 2015 Tax Return
While tax law doesn’t see huge changes year over year, there are many small changes that can affect your return this year. Awareness is key to maximizing your refund or decreasing the amount you owe. Knowing what issues you may encounter will make things go a whole lot faster when it comes time to file.
Under the Affordable Care Act (ACA), all Americans are required to have health insurance. While this might not seem to be directly related to your taxes, it is. At minimum, you will have to attest to the fact that you and your entire family have health insurance (via Form 1040) by checking a new box on your tax return. For those that receive health insurance from their employer or via a government program (Medicare/Medicaid), that is the extent of the impact.
However, if you purchased health insurance through the Healthcare Marketplace in exchange for tax credits, read on. Tax time is when the government is checks in with you to make sure that you still have health insurance and that you did not receive too many tax credits/subsidies when you purchased your health insurance.
If so, it is possible that you underestimated and could have to pay some of that back. In this case, you should have received a 1095-A verifying that you have insurance. You can use this to complete Form 8962 to determine if you got the right amount of financial assistance for your health insurance. It is possible that your refund will increase or decrease depending on this calculation.
2. Other Big Life Events
If something changed significantly in your life this year, you could expect to see a noticeable change on your tax return. Some examples of a big life event are marriage, divorce, birth of a child, death of a spouse, buying or selling a home, moving for a job or starting your own business. The impact on your return could be either positive or negative, but you want to be mindful that your return may be very different in years when significant life events occur.
3. Changes in Your Income
The biggest factor that can impact your tax return in the coming year is a change in income. The more you make, the more you pay in taxes. So if you get a big raise, expect to pay more to Uncle Sam. Similarly, if you find yourself unemployed or making less, you can expect to pay a bit less in taxes.
Success Tax Relief Can Help You Navigate Your Next Tax Return
If you are unsure how Obamacare or a major life change will impact your tax return this year, contact Success Tax Relief and let one of our tax pros review your return. We can make sure you’re taking advantage of every deduction and credit you’re entitled to.