THIS is what I’ve been waiting for! As someone who is self employed this was really a big deal to me when it came to filing my income tax each year. I was just determined NOT to pay the penalty no matter what. It was nerve racking, I pondered the potential future consequences, but … it was a hill to die on for me.
Thanks to President Trump it is no longer a concern, since the Executive Order he signed instructing agencies to “provide relief from the health law” …
Following President Donald Trump’s executive order instructing agencies to provide relief from the health law, the Internal Revenue Service appears to be taking a more lax approach to the coverage requirement.
The health law’s individual mandate requires everyone to either maintain qualifying health coverage or pay a tax penalty, known as a “shared responsibility payment.” As of last year, filers were required to indicate whether they had maintained coverage or paid the penalty by filling out line 61 on their form 1040s. Alternatively, they could claim exemption from the mandate by filing a form 8965.
For most filers, filling out line 61 was mandatory. The IRS would not accept 1040s unless the coverage box was checked, or the shared responsibility payment noted, or the exemption form included. Otherwise they would be labeled “silent returns” and rejected.
This year, however, filling out that line is optional.
Earlier this month, the IRS quietly altered its rules to allow the submission of 1040s with nothing on line 61. The IRS says it still maintains the option to follow up with those who elect not to indicate their coverage status, although it’s not clear what circumstances might trigger a follow up.
But the once mandatory disclosure is now voluntary. Silent returns will no longer be automatically rejected. The change is a direct result of the executive order President Donald Trump issued in January directing the government to provide relief from Obamacare to individuals and insurers, within the boundaries of the law.
This is the most impact that I can remember in a long time, in a positive way, that an elected official has had directly on my life.