No Premium Tax Credit for Non-marketplace Coverage

In some states, insurance companies sell the same policies on and off of the government marketplace. The Tax Court recently confirmed that a taxpayer can claim the premium tax credit only with respect to coverage purchased through a government marketplace (David Lee Nelson, Tax Court Order, 4/19/17). A self-employed individual in California enrolled directly in…

ITIN Renewals

If you have federal tax filing or income reporting obligations but are not eligible for a Social Security number (SSN) you must obtain an Individual Tax Identification Number (ITIN). In addition, anyone that has been using ITINs may need to renew at this time. Those with ITINs set to expire but who will be filing…

MyRAs Winding Down

MyRAs, which are a type of “mini-Roth IRA,” began in a pilot program in 2014 and went nationwide in 2015. However, due to the lack of interest and high cost to U.S. taxpayers in MyRAs, at the of July the Treasury announced (https://www.treasury.gov/press-center/press-releases/Pages/sm0135.aspx). As yet there is no end date to the program, but accounts…

Safe Harbor Deduction for Hard-Hit Homeowners

Homeowners who participate in the Household Finance Agency’s program for distressed homeowners may use a safe harbor for figuring their annual itemized deduction related to their homes. More specifically, distressed homeowners participating in a Treasury-approved program listed at www.treasury.gov/HHF can deduct the lesser of: The sum of all payments on the home mortgage that the…

Repayment of Premium Tax Credit

Individuals who buy health insurance through the federal or a state marketplace and have income below a set level for their family size can use the premium tax credit to reduce their monthly premiums. In effect, they receive the tax credit in advance to lower their monthly costs. However, if it turns out that income…

Court Rejects TurboTax Defense

An insurance consultant’s clients are currently primarily accountants. Nonetheless, he prepared his own return for tax years before he had these clients. He admitted to the Tax Court that he made a lot of mistakes when he prepared the return. He claimed payments to his former spouse were deductible. He claimed various business expenses, including…

IRS Interest Rates

The Fed is on course to raise short-term interest rates several times this year, but for the third quarter of 2017 (July 1 through September 30, 2017), the IRS interest rate for individual tax overpayments and underpayments is staying at 4%, the same rate that has applied since April 1, 2016 (Revenue Ruling 2017-13, 2017-26…