The Tax Professionals Blog
Medicaid Waiver Payments: A Double-Edged Sword
Posted by Lee Reams Sr. on
Background: As a means of reducing the government’s cost of caring for individuals who otherwise would be institutionalized (because they require the type of care normally provided in a hospital, nursing facility, or intermediate care facility), Medicaid will pay wages to care providers to care for these ill individuals in the care provider’s home. Until the release of Notice 2014-7, the IRS had taken the position that these payments, which are reported on a W-2, were taxable for the caregiver.Premium Tax Credit Interaction with Medicaid
Posted by Lee Reams Sr. on
We have had several questions posted related to PTC and its interaction with Medicaid. In virtually all of the cases, a spouse, child or dependent applied for and received free Medicaid coverage for 2015. In order to do that they would have had to indicate they were not in another family or did not have another family member with household income that they neglected to include in the application. Was it a mistake, misunderstanding, or fraud? At any rate they received Medicaid coverage for FREE.
Prior Year Lotto Installments & Current Year Gambling Losses
Posted by Lee Reams Sr. on
An interesting question related to deducting gambling losses was posted on our tax forum. Preparer’s client won the lottery in 2014 and chose to take installment payments for the rest of her life.
Obamacare Plans and HSAs
Posted by Lee Reams Sr. on
The question has arisen can an individual purchase health insurance through a government marketplace and also have an HSA?
Record of Completion Deadline Approaching – VERY IMPORTANT!
Posted by Lee Reams Sr. on
As we emphasized during last year’s ClientWhys fall seminars, effective for tax returns and claims for refunds prepared and signed after Dec. 31, 2015, the limited right to represent clients before the IRS held by non-credentialed preparers, including California Registered Tax Preparers (CRTPs), will only be accorded to those preparers participating in the IRS Annual Filing Season Program and who obtained their annual Record of Completion.