Are California Tax Preparers Ready for All of the Health Care Tax Provisions?

This could be one of the most trying tax seasons ever, particularly if you have not prepared yourself for the Affordable Care Act provisions that will be enacted in 2013 and 2014.

You will need to be prepared for the following client concerns and questions:

  • The penalty for not being insured
  • Who is exempt from having insurance?
  • Who qualifies for the premium assistance credit andforinsurance subsidies?
  • How the credit must be reconciled on the tax return
  • Questions about the “Covered California” Health Exchange
  • The new 3.8% net investment income (NII) tax for 2013
  • What income is exempt from the NII tax?
  • What assets sales are exempt from the NIItax?
  • What business income is subject to the NIItax?

While this information may feel overwhelming, it can be an opportunity to increase your billing and build stronger relationships with clients. Clients trust your knowledge and expertise. As such, be sure to take your tax update CPE by a provider who understands the Affordable Care Act and can get you ready for the tax season.

CTEC CPE is still in force in California, and all non-exempt tax preparers are required to complete the annual 20 hours of CE. They must also register by October 31st, even if the IRS program is suspended, or they risk losing CRTP status and will have to retake the 60-hour qualifying course in order to be reinstated.

This past year, CTEC made the provider education standards significantly more rigorous and are moving to disqualify those providers that offer the quick and easy certificate with little or no educational value. Students taking courses from these providers risk having the CE credit that they obtained from the providers disqualified. Therefore, it is important to make sure your provider is registered by CTEC before you buy.

  • Lee Reams II

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