RECOMMENDATION 00967-001
RECOMMENDATION TEXT:
Current Text: Recommended Text: Insert the following language as the first item under reminders. Repayment limitation may apply: You may be required to repay some of your advanced premium tax credit. See Table 5 on page 15 for the chart. (include a hyperlink to page 15) Justification: Taxpayer’s Right to Be Informed.
IRS Action: Recommended
RECOMMENDATION 00967-002
RECOMMENDATION TEXT:
Current Text: Recommended Text: Include the estimates of the taxpayer burden, including the time and average cost, in a format similar to pages 107 and 108 of Form 1040 instructions to be in comply with the Paperwork Reduction Act. Justification: To comply with Federal Paperwork Reduction Act guidelines. To inform the taxpayers of the burden generated by having to completing this form.
IRS Action: Recommended
RECOMMENDATION 00967-003
RECOMMENDATION TEXT:
Current Text: Recommended Text: Include the following as a tip under Who must file under page 2. If you don’t reconcile: If you don’t reconcile, you won’t be eligible for the advance payments of the premium tax credit or cost-sharing reductions to help pay for your Marketplace health insurance coverage for the following calendar year. Justification: Adding the tip will inform the taxpayer of the requirement to reconcile to avoid IRS correspondence and delay in processing the taxpayer’s return. In addition, the monthly health insurance cash flow required for health insurance will be higher because the credits will not be available for the following year.
IRS Action: Recommended
RECOMMENDATION 00967-004
RECOMMENDATION TEXT:
Current Text: Recommended Text: Include a chart showing who is considered a tax family. Justification: Ease of readability and the Right of the Taxpayer to be Informed.
IRS Action: Recommended
RECOMMENDATION 00967-005
RECOMMENDATION TEXT:
Current Text: Column (b). Enter on lines 12 through 23, column (b), the amount of the monthly applicable SLCSP premium reported on Form 1095-A, lines 21 through 32, column B, for the corresponding month. If you have more than one Form 1095-A showing coverage in a particular month, use the following rules to determine the amounts to enter on Form 8962, column (b), for that month. Recommended Text: Include a chart of the second lowest cost of silver plan (SLCSP). Justification: Provides clarity and ease of readability for the taxpayer. Results in fewer errors when completing the form.
IRS Action: Recommended
RECOMMENDATION 00967-006
RECOMMENDATION TEXT:
Current Text: The examples on page 17. Recommended Text: Expand the examples to state whether any part of the excess payment has to be repaid. Justification: Reinforces to the taxpayer when excess advanced premium tax payments need to be repaid.
IRS Action: Recommended
RECOMMENDATION 00967-007
RECOMMENDATION TEXT:
Current Text: Top line “You may use the percentage you agreed on for every month for which this allocation rule applies, or you may agree on different percentages for different months. However, you must use the same allocation percentage for all policy amounts (enrollment premiums, applicable SLCSP premiums, and APTC) in a month.” Recommended Text: Include a worksheet to support the monthly amounts entered on Form 8962. Justification: Adding the worksheet will assist the taxpayer with calculating the correct amounts to be included on Form 8962, and to avoid errors in calculating reported amounts.
IRS Action: Recommended
RECOMMENDATION 00967-008
RECOMMENDATION TEXT:
Current Text: If you are completing Form 8962, lines 12 through 23, stop here and enter the amounts from column C in column (e) for the months you completed column A. Enter “QSEHRA” in the top margin of Form 8962. Recommended Text: Add a checkbox if “QSEHRA” applies Justification: To avoid taxpayer confusion, it is better to have a check box rather than having the taxpayer write something in the top margin of Form 8962. A check box will then draw the taxpayer’s attention to the requirement.
IRS Action: Recommended
RECOMMENDATION 00967-009
RECOMMENDATION TEXT:
Current Text: “How to Avoid Common Mistakes in Completing Form 8962” Recommended Text: Move to page 4 before “Terms You May Need To Know” Justification: Ease of readability and avoid taxpayer’s confusion.
IRS Action: Recommended
RECOMMENDATION 00967-010
RECOMMENDATION TEXT:
Current Text: Recommended Text: Create a chart of who must file Form 8962. Justification: Provide clear guidance as to who must file Form 8962. This removes the potential for confusion for taxpayers since there are other situations where it is not required to be filed.
IRS Action: Recommended
RECOMMENDATION 00967-011
RECOMMENDATION TEXT:
Current Text: Recommended Text: Include Figure A. Can You Take the PTC? In the instructions for Form 8962, on page 2 after “Who Can Take the PTC”. Justification: Ease of readability and avoid taxpayer’s confusion.
IRS Action: Recommended
RECOMMENDATION 00967-012
RECOMMENDATION TEXT:
Current Text: Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. Recommended Text: Earned income includes any income, excluding capital gain income, from the sale, transfer, or licensing of property you created. Justification: To make it clear for the taxpayer on what the definition of earned income is.
IRS Action: Recommended
RECOMMENDATION 00967-013
RECOMMENDATION TEXT:
Current Text: Recommended Text: Include a chart summarizing the variables that could impact the self- employed insurance deduction. Justification: To highlight for the taxpayer what tax components, impact the self-employment insurance deduction, including the Premium Tax Credit, Medicare or other health insurance premiums paid, earnings from self-employment, self-employment tax, and
IRS Action: Recommended
RECOMMENDATION 00967-014
RECOMMENDATION TEXT:
Current Text: The remaining $5,000 of enrollment premium ($15,000 enrollment premium – $10,000 specified premiums) is attributable to Sue’s coverage and is a non- specified premium that Gary enters on Worksheet P, line 1. Recommended Text: Expand the example to clarify whether Sue is eligible for the Premium Tax Credit since she is eligible to enroll in her employer’s health insurance plan. Revise the last sentence to read: The remaining $5,000 of enrollment premium ($15,000 enrollment premium – $10,000 specified premiums) is attributable to Sue’s coverage and is a non- specified premium even though Sue is covered by employer’s health plan and Gary enters amount on Worksheet P, line 1. Justification: Taxpayer Right to be Informed by providing a clear understanding of Sue’s eligibility for Premium Tax Credit while covered under employer’s health insurance plan.
IRS Action: Recommended
RECOMMENDATION 00967-015
RECOMMENDATION TEXT:
Current Text: Do not attach this form 8962 to your tax return. Recommended Text: Create a chart of when Form 8962 is required to be attached. For example: Form 8962 is not required for someone who is calculating the self-employed health insurance. Justification: Provide clear guidance as to when the form is required to be attached. This removes the potential for confusion for the taxpayers since there are other situations where Form 8962 must be attached.