The ninth annual ACA open enrollment period started on November 1, 2021, and it runs through January 15, 2022. This period is longer than it has been previously. Because of that, we also wanted to run through the latest changes and updates for ACA 2022. Changes to Choices and Premiums As with previous years, marketplace premiums are changing for 2022. They will be about 3% lower than 2021. 32 more insurers are participating in the marketplace next year as well, bringing the total to 213. According to KFF, consumers in the marketplace will have a choice of almost 83 health plans in 2022, up from 46 plan choices in 2021. The American Rescue Plan Act also changed the healthcare marketplace plans and premiums. ARPA, among other things, extended eligibility for premium tax credits to include people with income levels more than 400% of the federal poverty level (FPL). When broken down, consumers on these plans end up contributing a maximum of 8.5% of their income toward the benchmark silver plan. Active Renewal Is Your Best Bet If you or your employees are currently enrolled in a 2021 marketplace plan, you can let the Open Enrollment period pass and you will automatically be moved to a similar plan for 2022. But active renewal is still your best bet when it comes to ACA 2022. If you allow the marketplace to passively enroll you in a similar program to previous years, you may end up paying more in monthly premiums because the 2022 ARPA changes aren’t optimized for your ideal plan. Extremely Low-Income Enrollment For individuals with very low income levels (up to 150% FPL), a new monthly enrollment opportunity will be available. These opportunities will include zero-premium plans with greatly reduced deductibles. State-Based Marketplaces This year, three states have launched state-based marketplaces in Kentucky, Maine, and New Mexico. The Future of ACA Marketplace Enrollment Due to a special COVID-based enrollment period that ended in August of …
2022 Tax Deadlines to Mark on Your Calendar
The 2022 tax season is just around the corner. To help you get ready, we wanted to put together a list of the most important 2022 tax deadlines that affect you and your business. 2021 Remaining Deadlines As we look toward 2022, there are still a few deadlines and windows in the remainder of 2021. The Open Enrollment window for Marketplace Insurance tied to the Affordable Care Act runs from November 1, 2021, to January 15, 2022. If you want your insurance to take effect immediately on January 1st, you need to select your plan by December 15, 2021. Another deadline yet not past in 2021 is the deadline to maximize 401k contributions. You can still make contributions up to and including December 31, 2021. IRS Publication 509 In the draft IRS Publication 509, the Internal Revenue Service outlines some of the newest changes and reminders for the 2022 tax season. Some of those reminders include: Payment of Deferred Employer or Employee Share of Social Security Tax of 2020: If you are an employer or employee who deferred paying their share of social security or railroad retirement tax equivalent in 2020, 50% of the share is to be made by January 3, 2022, and then applied against the payment due on January 3, 2023. Useful Publications: lists are included to help you navigate the previous IRS publications that pertain to employers, farmers, individuals, and those required to pay excise taxes. W-2s and 1099-NEC There are currently no changes to the process or form make-up as it pertains to the 1099-NEC that reports non-employee compensation. The deadline for these to be sent out is January 31, 2022. Tax Year Deadlines For employers, the due date for December 2021’s social security, Medicare, and withheld income tax is January 18, 2022, if the monthly deposit rule applies. The subsequent monthly deadlines fall on the following dates in 2022: February 15, March 15, April 18, May 16, June 15, July 15, August 15, September 15, October 17, November 15, …
Continue Reading about 2022 Tax Deadlines to Mark on Your Calendar →
Ultimate Guide to 1099s
There are lots of different 1099s and we wanted to help you better understand them, so we’ve put together this guide of eFile360 resources to help you grow your understanding. 1099s: The Basics First thing’s first – what is a 1099? It is, at its most basic form, a tax document that is used to report miscellaneous payments made to individuals who are not employed by your business. Any non-employee who receives more than $600 from you in any given tax year should receive a 1099 from you. There are more than a dozen different types of 1099 forms, the most popular include 1099-MISC (and now 1099-NEC), 1099-INT, 1099-DIV, 1099-K, 1099-B, 1099-G, and 1099-R. For a full list of 1099s and what each one is used for, check out this blog post. Typically, the deadline for filing 1099s with the IRS and also sending them to each independent contractor recipient is January 31. Here’s a quick resource on common 1099 questions. The New Kid: 1099-NEC In tax year 2020, the 1099-NEC was brought back to take the place of Box 7 on form 1099-MISC. The 1099-NEC did not replace the 1099-MISC, it was just reinstated to help streamline the process for filing non-employee compensation. Some examples of non-employee compensation include professional service fees to accountants, attorneys, architects, contractors, engineers, and more; payments for services like parts or materials used to complete the services, director’s fees, and other payments made to freelancers and independent contractors. For more about who fills out the 1099-NEC, click here. We also put together a great list of dos and don’ts as it pertains to the form 1099-NEC. You can read it here. 1099 FAQs The IRS has a ton of great insights into frequently asked questions about 1099s, including: What's the difference between a Form W-2 and a Form 1099-MISC or Form 1099-NEC? How do you determine if a worker is an employee or an independent contractor? I received a Form 1099-NEC instead of a Form W-2. …
How to Check Your Refund Status
Filed your taxes but haven’t received your refund yet? Here’s how to check it. How You File Affects the Processing Time Did you file your tax returns electronically and sign up for direct deposit? Mail paper returns? These things will affect the time it takes for you to receive your refund. If you filed your returns electronically, you can start checking for a refund status using the IRS’s Where’s My Refund? tool on their website as early as 24-48 hours after you submit your files. If you are using a mobile phone to check your refund status, all you need to do is download the IRS2Go app. In order to check your refund status, you’ll need a few things on hand: ITIN or Social Security Number Your filing status The exact amount you are expecting to receive from your refund The Where’s My Refund? tool should show a “Return Received” status within that 24-48 hour window of you filing electronically. Once the IRS finishes checking your returns, the status will change to “Refund Approved”, barring there were no issues with them. Once you receive the Approved status, you should likely receive your refund within 21 days. Once the IRS has sent your refund to your financial institution responsible for direct depositing the money into your bank account, the status will change to “Refund Sent”. If you filed a complete return electronically, your refund should be issued in less than 3 weeks. If you filed your returns on paper and mailed them, you should expect to have your refund six to eight weeks from the date the IRS receives them. Check the Date – Especially for EITC or ACTC The IRS opened their electronic filing on February 12, and as we stated above, you should be able to check your status within a day or two. But it’s also important to note that by law, the IRS can’t issue your refund before February 15. For those who claim Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the earliest you can get your …
4 Tips for Last-Minute Tax Filing
2020 was crazy and 2021 is shaping up to be a very busy year. But one constant is the swiftness with which the tax filing deadline approaches. Here are some tips for last-minute tax filing. Beware of Common Errors So You Can Avoid Them In your rush to complete your taxes on time, it may be tempting to “skim” over your work so you can finish more quickly. But this rush, coupled with the new and updated tax programs that were put in place due to the coronavirus pandemic, means you will very likely make mistakes. Here are the most common mistakes to look out for: SSN Errors – One of the most important things to have correct on your tax forms are the names and Social Security Numbers for everyone on your tax return. Make sure to check the SSNs for yourself, your spouse, and any dependents. Incorrect Account Numbers – 8 out of 10 taxpayers get their refunds by direct deposit. If you get your refund direct deposited, it’s worth the time to make extra sure your bank account and routing numbers are error-free. Forgetting to Sign – Your returns are not valid unless they are signed. If you are filing jointly, make sure your spouse’s signature is there, too. File Electronically In a PDF titled “Tips to Help Last-Minute Taxpayers”, the IRS stresses the importance of filing electronically. This is a great way to complete your returns quickly, taking some of that deadline pressure off you. Double Check Your W-2 & 1099 Forms On February 9, the IRS published a news release urging taxpayers to double-check that they received their W-2 and 1099 forms. “With some areas seeing mail delays, the Internal Revenue Service reminds taxpayers to double-check to make sure they have all of their tax documents, including Forms W-2 and 1099, before filing a tax return.” In a typical year, you should receive the following forms near the end of January: W-2, 1099-MISC, 1099-INT, 1099-NEC (new this year), 1099-G. If you are missing forms, you can reach out via …
Is TIN Checking Necessary?
Many e-filing services provide TIN checking as an additional service to e-filing and paper filing. But what is the service? And is it necessary? Many of our customers ask these questions when they use eFile360 to file their 1099s and related forms for the first time. Most customers want to be informed before they complete their order while others are suspicious of add-ons in general. So we wanted to clear the air: TIN checking isn’t necessary to file your 1099s, but this service can save you a lot of headaches. What is a TIN? A TIN is a Taxpayer Identification Number. It is also called a “95-number” or “tax-ID” number. A TIN is an umbrella term that means the following: Social Security Number (SSN) Employer Identification Number (EIN) Individual Taxpayer Identification Number (ITIN) Adoption Taxpayer Identification Number (ATIN) Preparer Tax Identification Number (PTIN) Business owners typically use their EIN to file business taxes and their SSN to file their personal taxes, but this may differ based on your unique situation. When it comes to filing 1099s, 1098s, ACA forms, and W-2s, business owners need to know the TIN for each employee, freelancer, and independent contractor that works for them. Tip: While you may only need to file a form if you pay that employee or contractor $600 within a calendar year, it’s always best to document their TIN before they start working for you. This way, you know that you have their TIN on file way before tax season. What is the TIN Error Reconciliation Process? When it comes to tax reporting, it’s vital that all of the information you file is accurate – including the TINs of your employees and contractors. This is where the TIN error reconciliation process comes into play. This process is three-fold: Check your records Use a TIN checking service, which efile360 offers File Form 1095-C when you find TIN errors The first portion of this process involves you double-checking …