by Anura Guruge
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The new Form 8962, that came to be with the 2014 Tax Returns, is probably the most pernicious feature of ObamaCare, a.k.a. Affordable Care Act (ACA) — and that takes some doing.
IF you have the misfortune of having to file one you will understand. Yes, I assume many of you rely on a Tax Preparer to do your taxes, including Form 8962. I have to assume that they must charge you more for doing it because it is not an easy form. It makes all the other common forms, Schedule D or Schedule C, seems TRIVIAL in comparison.
That the INSTRUCTIONS for Form 8962 runs to 18 pages is a clue that this is convoluted and complicated.
One of the stupidest things in this form is that it does NOT like you rounding up your percentage number when you are completing Line 5. Yes, it says so in the instructions BUT that is easy to miss.
IF you round up and say put .197 instead of .196 because the number you got from the division was .19689 you will be SCREWED! I kid you not. (And I made up those numbers to just serve as an example. I am not going to tell you mine. SMILE.)
I had my Free Fillable Form Electronic Filing REJECTED by the IRS because of that ONE Line 5 rounding up! Wow.
Took me about 10 minutes to work out what they were complaining about. Then, on reading the instructions, even more carefully, so it. DO NOT ROUND. I am so used to rounding up.
To be fair to the IRS it makes a difference. It, of course, depends on your numbers BUT I was surprised that in our case that rounding came to $20 — in OUR favor. So that is why the IRS balked. They wanted me to get it right.
So heads up. IF you are doing Form 8962 be careful rounding.
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by Anura Guruge