The Internal Revenue Service offers an assortment of online services, including features that help taxpayers understand how the Affordable Care Act will affect them at tax time.

Q:       Will the Affordable Care Act impact my tax return?
A:        This year’s tax return will include new questions to include provisions of the Affordable Care Act (ACA). Most taxpayers (about three-fourths) will just check a box to verify that they have health insurance coverage, but some taxpayers will have to take some additional steps. Visit IRS.gov/aca to learn about the premium tax credit, the individual shared responsibility requirement and other tax features of the ACA. The individual shared responsibility requirement included in the Affordable Care Act is new to the Form 1040 this filing season.

Q:       What does the ACA require taxpayers to do?

A:        The Affordable Care Act requires that all taxpayers and each member of their families have qualifying health insurance coverage for each month of the year, or qualify for an exemption or make an individual shared responsibility payment when filing the federal income tax return. Some moderate-income taxpayers may also qualify for financial assistance to help cover the cost of health insurance purchased through the Health Insurance Marketplace. Taxpayers will fall into one or more of the following categories:

·       Check the box. Most taxpayers will simply check a box on their tax return to show that each member of their family had qualifying health coverage for the whole year. No further action is required. Qualifying health insurance coverage includes coverage under most, but not all, types of health care coverage plans. Taxpayers can use the chart on IRS.gov/aca to find out if their insurance counts as qualifying coverage. 

·       Exemptions. Taxpayers may be eligible to claim an exemption from the requirement to have coverage.  Eligible taxpayers need to complete the new IRS Form 8965, Health Coverage Exemptions, and attach it to their tax return.  Taxpayers must apply for some exemptions through the Health Insurance Marketplace. However, most of the exemptions can be obtained from the IRS when filing a return.

·       Individual Shared Responsibility Payment. Taxpayers who do not have qualifying coverage or an exemption for each month of the year will need to make an individual shared responsibility payment with their return. Examples and information about figuring the payment are available on the IRS Calculating the Payment page.

·       Premium Tax Credit.  Taxpayers who bought coverage through the Health Insurance Marketplace should receive Form 1095-A, Health Insurance Marketplace Statement, from the Marketplace by early February. This form should be saved because it has important tax information. Taxpayers who should receive the form but haven’t received it by early February should contact their Marketplace. The IRS does not have access to this information.

           
            Taxpayers who got advance payments of the premium tax credit must file a federal income tax return. These taxpayers need to reconcile their advance payments with the amount of premium tax credit they’re entitled to based on their actual income. Some may see a smaller or larger tax refund or tax liability than was expected. Use IRS Form 8962, Premium Tax Credit (PTC), to calculate the premium tax credit and reconcile the credit with any advance payments.

            The IRS has set up a special section at IRS.gov/aca with more information about the Affordable Care Act and the 2014 income tax return.

Q:       Can taxpayers receive help in meeting the health care requirement?
A:        Low- and moderate-income taxpayers can get help meeting this health care requirement and filing their return for free by visiting one of the more than 12,000 community-based tax help sites staffed by more than 90,000 volunteers that participate in the Volunteer Income Tax Assistance and Tax Counseling for the Elderly (VITA/TCE) programs. To find the nearest site, use the VITA/TCE Site Locator on IRS.gov.

            The IRS also reminds taxpayers that a trusted tax professional can also provide helpful information about the health care law. A number of tips about selecting a preparer and national tax professional groups is available on IRS.gov.

The information for this “Law You Can Use” column was provided by the Internal Revenue Service. It was prepared by the Ohio State Bar Association. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

Q:       How does the Ohio Charitable Trust Act affect me?

A:        The Ohio Charitable Trust Act gives authority to the Ohio Attorney General to oversee charitable organizations.  Under this law, the Attorney General can investigate charities to ensure they are being operated appropriately, their assets are used properly and their donors and beneficiaries are protected.  Every Ohio charity must meet certain obligations under the Charitable Trust Act in addition to following IRS rules.

Q:       I am starting a charitable organization. What are my obligations under the Charitable Trust Act?

A:        Charitable organizations have registration and reporting obligations.  They must register one time with the Attorney General’s office, a straightforward process that must be completed online at www.ohioattorneygeneral.gov/charitableregistration.  The Attorney General’s website resources will guide you through the process.  You will need to provide basic information including the charity’s  address, taxpayer identification number, date of formation, state charter number, bingo license number (if you have one), description and value of assets and copies of your organizational documents (articles of incorporation, federal tax exemption letter, bylaws, etc.).

Once you create an online account and register, you must file a report with the Ohio Attorney General each year.  This report is in addition to the Form 990 you may file with the IRS, but asks for much of the same information and is due at the same time each year. 

Q:       Are there fees involved in registration and reporting?

A:        There is no cost to create an online account and register with the Attorney General’s office, but a fee is due at the time you file your annual report.  The fee varies based on your assets and ranges from $50 for small organizations up to $200 for large organizations.

Q:       Must every Ohio charity register and file reports?

A:        Certain organizations are exempt from registration and reporting.  These include schools, churches and booster clubs or PTAs with less than $25,000 in assets and gross receipts. If you are not sure if you are exempt, ask the Attorney General’s office or request an exemption through the online system.

Q:       Exactly how does the Attorney General get involved with charities?

A:        The Charitable Trust Act allows the Attorney General to investigate a charity when board members, key staff or officers fail to meet their fiduciary duties and donors or beneficiary interests are threatened.  The Attorney General’s office also offers educational resources to help those involved with charities understand their duties and obligations.   

Q:       What are fiduciary duties and who has them?

A:       The Ohio Attorney General recognizes four fiduciary duties that must be followed by anyone in a position of authority with a charitable organization (including board members, officers and senior staff):

1)    Duty of Loyalty – you must put the interests of the charity first and avoid conflicts of interest;

2)    Duty of Care – you must be active in the governance of the charity and understand its mission and programs;

3)    Duty of Compliance – you must confirm the charity follows the law and meets its legal obligations of registration, reporting and filing tax forms;

4)    Duty to Manage Accounts – you must ensure the charity makes sound financial decisions and has responsible fiscal policies in place.

Q:       What educational resources does the Ohio Attorney General’s office provide for charities?

A:        The Attorney General offers resources through its website at www.ohioattorneygeneral.gov/Business/Services-for-Charities.  These materials explain fiduciary duties, help you avoid theft in your organization and clarify registration and reporting obligations.  The Attorney General’s office also publishes a newsletter and hosts webinars to discuss obligations and duties under the Charitable Trust Act.  You can also ask someone from the Attorney General’s office to provide in-person trainings in your community by calling 800-282-0515.

            The Attorney General also provides information for those wishing to donate to charitable organizations.  You can research specific charities through the website and can find “good giving” articles and brochures to help you make informed decisions about making contributions. You can find this information at www.ohioattorneygeneral.gov/Business-and-Non-Profits/Charity/Good-Giving.aspx.

Q:       What if my charity solicits donations or runs bingo games?

A:        In addition to its duties according to the Ohio Charitable Trust Act, the Attorney General regulates charitable solicitations through the Ohio Solicitations Act. Many charities hire professional fundraisers and solicitors to help them raise money. In Ohio, these professional fundraisers must be licensed and follow certain laws found at www.ohioattorneygeneral.gov/Business/Professional-Solicitors-and-Fundraisers.

            If you host bingo games to raise funds for your charity, you must comply with bingo license laws.  Learn more through the Attorney General’s “Bingo School” and online at www.ohioattorneygeneral.gov/Business-and-Non-Profits/Bingo-Operator.aspx.

This “Law You Can Use” consumer legal information column was provided by the Ohio State Bar Association (OSBA). It was prepared by attorney Mary Gallagher of the Ohio Hospital Association. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek the advice of a licensed attorney.

Q:        I’ve heard I might be able to get a special tax credit because I contributed to my retirement account in 2013. Is that true?
A:        It’s true, if you qualify.  Workers with low- to moderate-income can earn a special federal “saver’s” tax credit, which helps promote retirement savings. Begun in 2002 as a temporary provision, the saver’s credit was made a permanent part of the tax code in legislation enacted in 2006. To help preserve the value of the credit, income limits are now adjusted annually to keep pace with inflation.

Q:        How does the saver’s credit work?
A:        The saver’s credit, also known as the retirement savings contribution credit, helps offset part of the first $2,000 that you voluntarily contribute to an IRA, a 401(k) plan or a similar workplace retirement program. You can get this tax credit in addition to any other tax savings that may apply to you.

Q:        Can I make retirement contributions and get the saver’s credit to use for my 2014 tax return?
A:        Yes. You should schedule your 2014 contributions now so your employer can begin withholding your contributions as soon as possible. To qualify for the saver’s credit on your 2014 tax return, you must contribute by Dec. 31, 2014 to a qualified retirement plan. Qualified plans include a 401(k) plan or similar workplace program such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees.

Q:        Who qualifies for the saver’s credit?
A:        The saver’s credit can be claimed by:

• married couples filing jointly with incomes up to $59,000 in 2013 or $60,000 in 2014;
• heads of household with incomes up to $44,250 in 2013 or $45,000 in 2014; and
• married individuals filing separately and singles with incomes up to $29,500 in 2013 or $30,000 in 2014.

      You cannot take the credit if you are under 18 years of age, if you are claimed as a dependent on someone else’s return, or if you were a full-time student during any part of five calendar months during the tax year.

Q:        If I qualify for the saver’s credit, does that mean I get a bigger refund at tax time?
A:        Not necessarily. Like other tax credits, the saver’s credit can reduce your overall tax liability. It could either increase your refund, or reduce the additional tax you owe. The maximum saver’s credit is $1,000 for an individual and $2,000 for married couples, but any other deductions and credits you claim may reduce the saver’s credit amount quite a bit. In fact, taxpayers who have already reduced their tax bill substantially with other deductions and credits may not benefit from the saver’s credit.

Q:        How does the IRS determine the amount of my saver’s tax credit?
A:        Your credit amount is based on your filing status, your adjusted gross income, your tax liability and the amount you contributed to qualifying retirement programs. You should use Form 8880 to claim the saver’s credit. The form’s instructions will help you figure your credit.

Q:        If I take the saver’s credit, can I still deduct my IRA contributions?
A:        Generally, yes. The saver’s credit supplements other tax benefits available to people who set money aside for retirement. Most workers may deduct their contributions to a traditional IRA. Although you cannot deduct your Roth IRA contributions, qualifying withdrawals from your Roth IRA, usually after retirement, are tax-free. Normally, contributions to a 401(k) or similar workplace plan are not taxed until you withdraw them.

Q:        Where can I get more information about the saver’s credit?
A:        For more information about the credit, visit IRS.gov.

The information for this “Law You Can Use” column was provided by the Internal Revenue Service. It was prepared by the Ohio State Bar Association. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

Q:       I just got an upsetting phone call from someone who said I owe money to the IRS. He said if I didn’t pay it back right away using a pre-loaded debit card or a wire transfer, that I might be arrested or deported, or that I might lose my driver’s license. I hung up the phone, but now I’m worried. What if I’m arrested?

A:        The IRS is currently warning consumers about a scam that has hit taxpayers, including recent immigrants, in nearly every state in the country. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If victims refuse to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.
            The IRS DOES NOT and WILL NOT ask for credit card numbers over the phone. Also, the IRS WILL NOT ask you for a pre-paid debit card or wire transfer. If you receive an unexpected call from someone claiming to be from the IRS, and person threatens you with police arrest, deportation or revocation of your license if you don’t pay immediately, those are signs that it really isn’t the IRS calling. If the IRS wants to contact you about a tax issue, you will probably receive your first notice through the mail.

Q:       What else should I know about this phone scam?
A:        You should know that:

·       scammers use fake names and IRS badge numbers, and generally use common names and surnames to identify themselves;

·       scammers may be able to recite the last four digits of your Social Security number;

·       scammers may spoof the IRS toll-free number on your caller ID to make it appear that it’s really the IRS calling;

·       scammers sometimes send bogus IRS emails to support their bogus calls;

·       you may hear background noise of other calls being conducted to mimic a call site;

·       after threatening you with jail time or driver’s license revocation, scammers may hang up, but then other scammers may soon call back pretending to be from the local police or DMV (and your caller ID may support this claim).

Q:       What should I do if I ever get a call like that again?

A:        If you get a phone call from someone claiming to be from the IRS, here’s what you should do:

• If you know you owe taxes or you think you might owe taxes, call the IRS at 800-829-1040. The IRS employees at that line can help you with a payment issue, if one actually exists.
• If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill, or the caller made the threats described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 800-366-4484.
• If you’ve been targeted by this scam, you should also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add “IRS Telephone Scam” to the comments of your complaint.

Q:       Are there other scams I should know about?

A:        Yes. You should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief) that fraudulently claim to be from the IRS.
            The IRS encourages you to be vigilant against phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. If you receive such a communication, you should not open any attachments or click on any links contained in the message. Instead, forward the email to phishing@irs.gov.

Q:       Where can I get more information?
A:        For more information on how to report phishing scams involving the IRS, go to the genuine IRS website, IRS.gov.

The information for this “Law You Can Use” column was provided by the Internal Revenue Service. It was prepared by the Ohio State Bar Association. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

Q:       I heard legally married same-sex couples will now be treated as married for federal tax purposes. I was married in a state that allows same-sex marriages, but recently moved to a state that does not recognize our marriage. Will the IRS still recognize us as married for tax purposes even if our current state of residence does not?

A:        Yes. Due to a recent U.S. Department of the Treasury and Internal Revenue Service (IRS) ruling that takes effect Sept. 16, 2013, same-sex couples who were legally married in jurisdictions recognizing their marriages are to be treated as married for federal tax purposes. The ruling applies even if the couple lives in a jurisdiction that does not recognize same-sex marriage. This ruling implements federal tax aspects of the June 26, 2013 U.S. Supreme Court decision that invalidated a key provision of the 1996 Defense of Marriage Act.

Q:       What “federal tax purposes” does the ruling cover?
A:        Under the ruling, same-sex couples will be treated as married for all federal tax purposes, including income and gift and estate taxes. The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.

Q:       Does the ruling apply to registered domestic partnerships?

A:        No. The ruling covers any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory or a foreign country, but it does not apply to registered domestic partners, who are not married under state law.

Q:       How should legally married same-sex couples file their 2013 federal income tax return?

A:        Beginning Sept. 16, any return filed by legally married same-sex couples generally must use either the “married filing jointly” or “married filing separately” filing status. Individuals who were in same-sex marriages may, but are not required to, file original or amended returns choosing to be treated as married for federal tax purposes for one or more prior tax years still open under the statute of limitations. 

Q:       What is the statute of limitations for filing a tax refund claim?

A:        Generally, you have three years from the date the return was filed or two years from the date the tax was paid, whichever is later, to file your claim. This means that in 2013 you can file refund claims for tax years 2010, 2011 and 2012. In some special circumstances (such as signing an agreement with the IRS to keep the statute of limitations open), taxpayers may be allowed to file refund claims for tax years 2009 and earlier.

Q:       I bought same-sex spouse health insurance coverage from my employer on an after-tax basis. Do I get any credit for that?

A:        Yes. You may treat the amounts you paid for that coverage as pre-tax and exclude those amounts from your taxable income.

Q:       How do I file a refund claim?

A:        To file a refund claim for income taxes, you should use Form 1040X, Amended U.S. Individual Income Tax Return. To file a refund claim for gift or estate taxes, use Form 843, Claim for Refund and Request for Abatement. For information on filing an amended return, see Tax Topic 308, Amended Returns, available on IRS.gov, or the Instructions to Forms 1040X and 843. You can find information about where to file your amended returns in the form instructions.

Q:       Will employers receive guidance about getting refunds for past benefits provided to same-sex spouses?

A:        Yes. The U.S. Treasury and the IRS intend to issue streamlined procedures for employers wishing to file refund claims for payroll taxes paid on previously taxed health insurance and fringe benefits provided to same-sex spouses. The Treasury and IRS also intend to issue further guidance on cafeteria plans and on how qualified retirement plans and other tax-favored arrangements should treat same-sex spouses for periods prior to the revenue ruling’s effective date of Sept. 16, 2013. Other government agencies also may provide guidance related to same-sex marriage on the federal programs they administer.

Q:       Where can I get more information?

A:        Visit www.IRS.gov for Revenue Ruling 2013-17, and to find updated Frequently Asked Questions (FAQs) about same-sex couples, registered domestic partners and individuals in civil unions.

This “Law You Can Use” column was prepared by the Ohio State Bar Association (OSBA). The information was provided by the Internal Revenue Service (www.IRS.gov). The column offers general information about the law. Seek an attorney’s advice before applying this information to a legal problem. For more information on a variety of legal topics, visit the OSBA’s website at www.ohiobar.org.