Ortega Income Tax Service

03/13/2014

this information is a little more detailed-As with everything tax-related, there's no simple answer to "How much is the Obamacare penalty tax?" But here are some key points, from FactCheck.org:

The penalty/tax will be phased in from 2014 to 2016.
The minimum penalty/tax in 2016 will be $695 per person and up to 3-times that per family. After 2016, these amounts will increase at the rate of inflation.
The minimum penalty/tax per person will start at $95 in 2014 (and then increase through 2016)
No family will ever pay more than 3X the per-person penalty, regardless of how many people are in the family.
The $695 per-person penalty is only for those who make between $9,500 and ~$37,000 per year. If you make less than ~$9.500, you're exempt. If you make more than ~$37,000, your penalty is calculated by the following formula...
The penalty is 2.5% of any household income above the level at which you are required to file a tax return. That level is currently $9,500 per person and $19,000 per couple. The penalty on any income above that is 2.5%. So the penalty can get expensive quickly if you make a lot of money.
However, the penalty can never be more than the cost of a "Bronze" heath insurance plan purchased through one of the state "exchanges" that will be created as part of Obamacare. The CBO estimates that these policies will cost $4,500-$5,000 per person and $12,000-$12,500 per family in 2016, with the costs rising thereafter.

So, basically, you're looking at penalties of approximately the following at the following income levels:

Less than $9,500 income = $0
$9,500 - $37,000 income = $695
$50,000 income = $1,000
$75,000 income = $1,600
$100,000 income = $2,250
$125,000 income = $2,900
$150,000 income = $3,500
$175,000 income = $4,100
$200,000 income = $4,700
Over $200,000 = The cost of a "bronze" health-insurance plan

The IRS will collect the penalty-tax, a fact that will no doubt further enrage those who hate Obamacare.

But here's some more good news for those folks:

The IRS will not have the power to charge you criminally or seize your assets if you refuse to pay. The IRS will only have the ability to sue you. And the most the IRS can collect from you if it wins the suit is 2X the amount you owe. So if you want to thumb your nose at the penalty-tax, the IRS won't be able to do as much to you as they could if you refused to pay, say, income tax.

By the way, the following folks will be exempt from the penalty-tax:

Those who make less than $9,500
Employees whose employers only offer plans that cost more than 8% of the employee's income
Those with "hardships"
Members of Indian tribes
Members of certain religions that don't pay Social Security tax, such as Amish, Hutterites, or Mennonites

And, of course, Obamacare isn't free. So, whether you pay the penalty or not, you're going to have to pay a lot of other taxes to pay for it.

Read more: http://www.businessinsider.com/how-much-is-the-obamacare-penalty-tax-2012-7

Unless you're Amish.

02/22/2014

Form W-2 Missing? IRS Can Help

If you worked as an employee last year, your employer must give you a Form W-2, Wage and Tax Statement. This form shows the amount of wages you received for the year and the taxes withheld from those wages. It’s important that you use this form to help make sure you file a complete and accurate tax return.

Most employers give Forms W-2 to their workers by Jan. 31. If you haven’t received yours by mid-February, here’s what you should do:

1. Contact your employer. You should first ask your employer to give you a copy of your W-2. You’ll also need this form from any former employer you worked for during the year. If employers send the form to you, be sure they have your correct address.

2. Contact the IRS. If you exhaust your options with your employer and you have not received your W-2, call the IRS at 800-829-1040. You’ll need the following when you call:

Your name, address, Social Security number and phone number;
Your employer’s name, address and phone number;
The dates you worked for the employer; and
An estimate of the amount of wages you were paid and federal income tax withheld in 2013. If possible, you can use your final pay stub to figure these amounts.

02/21/2014

The Child Tax Credit May Cut Your Tax
If you have a child under age 17, the Child Tax Credit may save you money at tax time. Here are some key facts the IRS wants you to know about the credit.
• Amount. The non-refundable Child Tax Credit may help cut your federal income tax by up to $1,000 for each qualifying child you claim on your tax return.
• Qualifications. A child must pass seven tests to qualify for this credit:
1. Age test.
2. Relationship test.
3. Support test.
4. Dependent test.
5. Joint return test.
6. Citizenship test.
7. Residence test.

02/18/2014

NEW CLIENT SPECIAL!
Refer a Friend!
After you become a new client of Ortega Income Tax Service Refer a friend to use our services.
For each and every additional "new" client that you refer to us we will pay you $20.00
Call Today!!

02/17/2014

Are you a student in college? Bring your 1098-T it could be worth up to $1000, don't miss out on this credit.

02/17/2014

We are an authorized IRS e-file Provider
Rather than filing a return on pa-per, you may be able to file electronically using IRS e-file. Create your own personal identifica-tion number (PIN) and file a completely paper-less tax return. For more information call us today 956 8029167

02/15/2014

Choosing the Right Filing Status

Using the correct filing status is very important when you file your tax return. You need to use the right status because it affects how much you pay in taxes. It may even affect whether you must file a tax return.

When choosing a filing status, keep in mind that your marital status on Dec. 31 is your status for the whole year. If more than one filing status applies to you, choose the one that will result in the lowest tax.

02/14/2014

Quieres hacer algo de dinero $$ extra? Solo tienes que enviar a tus amigos a nuestra oficina y por cada cinco personas que envies a presentar su declaracion de impuestos con nosotros tu recibes $100! Eso es dinero facil porque todo el mundo tiene que presentar su declaracion de impuestos, asi que no te pierdas esto. Además, sabes que van a obtener el mejor reembolso posible, sólo has que tus amigos, familiares o compañeros de trabajo nos den tu nombre cuando vengan. Algunas restricciones aplican, por favor póngase en contacto con nosotros para más información (956) 802 9167

02/14/2014

Want to make some extra cash? Just send your friends over to our office and for every five people you send to file their return with us you get $100! That's easy money because everyone has to file their tax returns, so don't miss out on this. Plus you know you will get the best refund possible, just have your friends, relatives or coworkers give us your name when they file. Some restrictions do apply please contact us for more information 956 802 9167

02/13/2014

Cuando vengas a hacer tu income tax con nosotros no olvides traer contigo:
Tu Numero de Seguro Social y el de tus dependes
Licencia de manejo o un ID con tu direccion actual
Tus W-2's y 1099's
Y comprobantes de gastos
Si tienes alguna pregunta no dudes en comunicarte con nosotros (956) 802 9167

02/06/2014