The Health Changes Are Not Official Yet, so File Your 2016 Taxes As Usual
Earlier this month, Republican leaders proposed the American Health Care Act , their plan to end and replace Obamacare. Some taxpayers may be a little confused by the change in the individual mandate. Keep in mind that nothing really has changed, so go ahead and file your 2016 taxes as usual.
Earlier this year, Trump also issued a decree giving federal agencies like the IRS the power to repeal elements of the Affordable Care Act. Forbes said the IRS appears to have weakened the ACA’s individual mandate as a result. This mandate requires taxpayers to either sign up for health insurance or pay a tax penalty. Following Trump’s order, the IRS issued a statement suggesting that they can still process tax returns even if taxpayers did not provide this individual coverage information. All of this creates a rather confusing tax time. Forbes puts it this way :
Result? There is a lot of confusion among taxpayers. It may even explain why the tax season starts slowly : millions of taxpayers who filed by this time last year did not apply in 2017. Taxpayers aren’t sure what to do. But here’s what you need to know: nothing has changed. There is nothing. Zilch. Nada.
As the IRS bluntly points out, “The statutory provisions of the ACA remain in effect until Congress changes them.” In other words, pay taxes as usual, because nothing is officially known yet. However, for more details, you can read the IRS statement on the matter at the link below.