IS A PUZZLEMENT!

 

Now is the time that persons of my age need to begin to take Required Minimum Distributions (RMDs) from retirement accounts – IRAs, SEPs, 401(k)s, 403(b)s, etc.  A friend from high school and college, and also a fraternity brother, needed to take an RMD from his 401(k) plan.

A fellow fraternity brother, a former corporate controller who is now a stockbroker, told our friend about a special tax benefit related to “Net Unrealized Appreciation” or NUA -

“I explained to him that since he has appreciated stock in his 401(k) it can be rolled into a taxable brokerage account. The appreciated stock would count towards his RMD while the IRS would only tax his cost basis, saving him thousands of dollars in both federal and state taxes.”

I wrote about this tax benefit here back in November of 2008 in “Here Is A Special Tax Trick” -

“Often employee contributions, and employer matches, to a pre-tax employer pension or savings and investment plan will be invested in the stock of the employer-corporation.

When the employee leaves the company he/she can (a) remain in the plan until retirement age (if allowed by the plan), (b) roll-over the balance in the plan to another tax-deferred account and continue to defer taxable income, or (c) “take the money and run” and be currently taxed on the distribution.

If the employee holds appreciated stock in his former employer’s company in the plan, he/she should not roll-over the stock to an IRA. The thing to do is to withdraw the actual shares of company stock and rollover any remaining cash balance.

The employee will receive a 1099-R reporting a taxable distribution equal to his/her “basis” in the company stock, which is generally the total amount of employee contributions used to purchase the stock. The employee will not be taxed on the full market value of the stock on the date of distribution.

The difference between the basis and the market value is referred to as “net unrealized appreciation” (NUA). This NUA is not taxed until you actually sell the stock. When the stock is sold the NUA, plus any additional gain, will be taxed as a long-term capital gain at the special preferential tax rate – which could actually be “0%” depending on the circumstances.

If you roll-over the company stock to an IRA, when you withdraw money from the rollover IRA it will be fully taxed at ordinary income rates. You would lose the tax benefit of capital gain treatment on the Net Unrealized Appreciation.

You can sell the company stock right away. You do not have to wait to actually hold the stock for a year after the date of the withdrawal – the sale will automatically be considered to be long-term.”

To add to the post – if you keep the money in the 401(k) all RMDs will be taxed as ordinary income at “regular” tax rates.

Did our friend do as his fraternity brother suggested?  No.

“He told me last week that he did his RMD directly from his 401(k).  He asked AI, and AI told him I was wrong, that there was no tax benefit in doing a NAV net assets value rollover of company stock.”

Why our fraternity brother would choose artificial intelligence over the real intelligence of a trained and experienced professional, and 50-year friend, is truly a puzzlement.

The bottom line – don’t rely on “AI” for tax advice!

TTFN

2023 PENSION CONTRIBUTION NUMBERS

  

The IRS has released Notice 2022-55, which identifies the inflation-adjusted contribution limits for retirement accounts for tax year 2023.  Here are the highlights -

IRA = $6,500

IRA Catch-Up Contributions at age 50 and older = $1,000

SIMPLE Plan = $15,500

SIMPLE Catch-Up Contributions at age 50 and older = $3,500

401(k), 403(b), 457, and Thrift Savings Plan = $22,500

401(k), 403(b), 457, and Thrift Savings Plan Catch-Up Contributions at age 50 and older = $7,500

SEP or Solo401(k) plan = $66,000.   

 

AGI phase-out range for contributions to a traditional IRA by active participants in an employer retirement plan:

 

$73,000 - $83,000 = Single and Head of Household

$116,000 - $136,000 = Married Filing Joint and Surviving Spouse

$0 - $10,000 = Married Filing Separate

 

The deduction on a joint return for a spouse that is not an active participant in an employer plan, but who is married to one who is, phases out at AGI of $218,000 to $228,000.    

 

AGI phase-out range for contributions to a Roth IRA:

 

$138,000 - $153,000 = Single and Head of Household

$218,000 - $228,000 = Married Filing Joint and Surviving Spouse

$0 - $10,000 = Married Filing Separate

 

TTFN

IRS ANNOUNCES 2022 RETIREMENT CONTRIBUTION NUMBERS

The IRS has announced, in Notice 2021-61, the numbers for contributions to tax-deferred retirement savings accounts for 2022.

Here are the 2022 contribution limits -

 

·         IRA = 6,000

·         IRA Catch-Up Contributions at age 50 and older = 1,000

·         SIMPLE Plan = 14,000

·         SIMPLE Catch-Up Contributions at age 50 and older = 3,000

·         401(k), 403(b), 457, Thrift Savings Plan = 20,500

·         401(k), 403(b), 457, Thrift Savings Plan Catch-Up Contributions at age 50 and older = 6,500

·         Maximum Contribution to a SEP or Solo401(k) plan = 61,000

The Adjusted Gross Income (AGI) phase-out range for contributions to a traditional IRA by taxpayers who are active participants in an employer retirement plan for 2022 are -

 

·         68,000 - 78,000 = Single/Head of Household

·         109,000 - 129,000 = Married Filing Joint

·         0 - 10,000 = Married Filing Separate

The deduction on a joint return for a spouse that is not an active participant in an employer plan, but who is married to one who is, phases out at AGI of 204,000 to 214,000 for 2022.    

 

The AGI phase-out range for Roth IRA for 2022 is -

 

·         129,000 - 144,000 = Single/Head of Household

·         204,000 - 214,000 = Married Filing Joint 

·         0 - 10,000 = Married Filing Separate

You may be able to claim a Retirement Savings tax credit on contributions made to -

ü  a traditional or ROTH IRA,

ü  a 401(k), 403(b), government 457(b), SARSEP, SIMPLE, or Thrift Savings Plan

ü  an ABLE account for which you are the designated beneficiary.

The credit amounts and limitations for 2022 are -

CREDIT	JOINT	HEAD OF HOUSEHOLD	SINGLE/SEPARATE
50% of first $2,000	$0–$41,000	$0-$30,750	$0-$20,500
20% of first $2,000	$41,001 - $44,000	$30,751 - $33,000	$20,251 - $22,000
10% of first $2,000	$44,000 - $68,000	$33,001 - $51,000	$22,001 - $34,000

TTFN

FROM THE EMAIL BOX

A married couple who is a few months from retirement, long-time friends and 1040 clients, recently met with a new Financial Advisor and emailed me for my advice on issues that had been discussed.  Here are the issues they identified and my responses.

 

1) Donor Advised Funds – Earmark an amount for immediate income tax deduction and donate to our usual 501C3 organizations with payments out of this fund.

 

Answer:  This is a good tax planning option when you are unable to itemize but relatively “close to the edge”.  It will allow you to perhaps itemize every other year.  Remember that the tax benefit of any charitable contribution is based on the extent your total itemized deductions exceeds the Standard Deduction amount for your filing status.  See here for an explanation of Donor Advised Funds -.  FYI, you can also contribute stock to a Donor Advised Fund (see answer to Question #2).

 

2) Donating Stock – Take current stock holdings and donate to charitable organizations for a tax write off.

 

Answer: This is also a good option, providing a tax benefit if you can itemize.  However, even if you cannot itemize this option does save capital gains taxes.  See here for an explanation of the rules for donating stock to a charity

 

3) IRA Beneficiary – We were told that money passed to beneficiary from an IRA is now made taxed over 10 years.

 

Answer:  Thanks to the SECURE Act, starting in 2020, for IRAs passing to a “non-spouse” beneficiary, the entire amount of the account balance must be distributed to the beneficiary (or beneficiaries) by the end of the 10^th year following the year after the account owner’s passing.  There are 3 exceptions –

 

* the beneficiary is a minor child of the account owner,

* the beneficiary is not more than 10 years younger than the account owner, or

* the beneficiary is disabled or chronically ill as defined by the Internal Revenue Code

 

See the topic “Definition of Disabled or Chronically Ill” here.

 

4) ROTH IRA – Our Financial Advisor suggested we begin converting IRA money from our current Standard IRA accounts into Roth IRAs. 

 

Answer:  The amount you convert will be taxed in the year of the conversion, except for any recapture of “basis” (non-deductible contributions).  Converting a portion of traditional IRAs to a ROTH annually over a period of years is a good idea, with the goal of keeping the annual cost of the conversion within a low marginal tax bracket.

 

5) 401(k) Beneficiary – The Advisor also suggested listing beneficiaries on our 401(k) accounts because this has nothing to do with the will and takes the process outside of probate.

 

Answer:  The named beneficiary or beneficiaries on a 401(k), IRA, or other retirement savings account automatically gets the money in the account directly from the account trustee on your passing.  It has nothing to do with your will or probate.  It is a good idea to name beneficiaries on your retirement savings accounts, and review the beneficiary designations every few years. 

 

6) Savings Bonds – We recently reviewed our inventory of US Savings Bonds and the interest was quite high.  We would appreciate your thoughts on liquidating bonds based on most recent purchases vs older bond purchases to reduce taxes.

 

Answer:  The first consideration in choosing which bonds to cash-in first is whether or not the bonds are still accruing interest.  As with the ROTH conversions, the liquidation of bonds still earning interest can be done over a period of years, cashing in older bonds first and keeping the interest reported each year within a low marginal tax bracket.  FYI, savings bond interest is never taxed on the state return. 

 

TTFN

A COSTLY MISTAKE

Tax Court Summary Opinion 2019-19 deals with a mistake I have seen taxpayers, including a couple of clients, make over the years.  And it emphasizes the importance of three points –

* A little knowledge is dangerous

* Always check with your tax professional before making a move that could affect your taxes.  And

* What I have continually said is the best advice I can give any taxpayer - do not accept tax advice from anyone other than a professional tax preparer.

Here are the facts of the case.

If you take a withdrawal from an IRA account or a qualified retirement plan, such as a 401(k), prior to turning age 59½, and the withdrawal is not rolled over to another retirement account within 60 days, you are subject to a 10% premature withdrawal penalty.

The taxpayer in the case, under age 55, closed out her 401(k) plan account to make the down payment for her and her husband’s first home.  She was told by her plan representative that she would not pay a premature withdrawal penalty on the full amount because they were first-time home buyers.  But she did not verify this with a tax professional.

The IRS correctly assessed a 10% penalty on the entire amount of the withdrawal, which was upheld in TC Summary Opinion 2019-19

The taxpayer and her 401(k) representative were correct that there is an exception to the 10% penalty – Exception 09 – for a distribution of up to $10,000 for first-time home purchases (the little knowledge).  However, this exception is ONLY for distributions from an IRA account and does NOT apply to withdrawals from a qualified employer retirement plan like a 401(k).

Of the various available exceptions to the premature withdrawal penalty some are for withdrawals from ANY qualified retirement account, some are only for withdrawals from an IRA account or IRA annuity, and one is only for withdrawals only from a qualified employer retirement plan like a 401(k).  The first-time home purchase exception is one of those that applies only to IRA withdrawals.

If the taxpayer had checked what she was told by her plan representative with her, or a, tax professional before closing out the account she would have been told that none of the withdrawal would qualify for the penalty exception.

The tax professional would probably have told her to rollover her 401(k) account directly into an IRA account and then withdraw the money from that IRA account to cover the down payment.  Then $10,000 would be exempt from the penalty and the taxpayers would have saved $1,000 plus the resulting penalty and interest assessment as well as the applicable court costs.

Don’t make the same mistake, or a similar one.  Always check with a qualified tax professional before taking any action, regardless of what anyone else has told you or what you have read somewhere.

TTFN

A LITTLE THIS-A AND A LITTLE THAT-A

A potpourri of tax “stuff” -

+ The IRS recently announced, in Notice 2018-83, the contribution limits for retirement plans for calendar year 2019.

The maximum contribution to a traditional or ROTH IRA, or a combination of the two, is increased from $5,500 to $6,000.  The catch-up contribution for individuals age 50 or older remains at $1,000.

The maximum contribution to a 401(k), 403(b) and 457 retirement plans is increased from $18,500 to $19,000.  The catch-up contribution remains at $6,000.

The maximum contribution to a SIMPLE retirement plan is increased from $12,500 to $13,000.  The catch-up contribution remains at $3,000.

The maximum contribution to a SEP or Solo401(k) plan is increased from $55,000 to $56,000.  SEP and Solo401(k) contributions are based on a % of “compensation” or adjusted net earnings from self-employment.

+ Usually you are given the option of having IRA administrative, custodial or management fees deducted from the account balance or paying them directly by personal check.  You should pay these fees directly by sending the trustee a check.

By doing this you increase the tax-deferred accumulation within the account, so more money is available at retirement.

A reminder – investment expenses like IRA administrative, custodial or management fees are no longer deductible on Schedule A.  

+ Beginning in 2018 job-related moving expenses are no longer deductible.  And reimbursements of these deductible job-related moving expenses are included in taxable wages reported on Form 1040.  For tax years 2018 through 2025 only moving expenses incurred by a member of the Armed Forces on active duty who moves due to a military order are deductible.

However, according to IRS Notice 2018-75, if you made a job-related move in calendar year 2017 any qualified moving expenses related to the move that you were reimbursed by your employer in calendar year 2018 are excluded from gross taxable wages, if the reimbursement would have been excludable from income if made in calendar year 2017.  

+ Now that the Democrats, thankfully, control the House the GOP Tax Act will not be made permanent. 

FYI, here is my take on what true “tax reform” should look like – THE TAX CODE MUST BE DESTROYED.

What do you think?

TTFN

THE UNIVERSAL SAVINGS ACCOUNT

The recent “House GOP Listening Session Framework – Tax Reform 2.0” released by the Ways and Means Committee once again brings up the idea of a “USA” account, calling for “Creating a new Universal Savings Account to offer a fully flexible savings tool for families”.

The idea of a Universal Savings Account, or USA, not described in detail in the Ways and Means release, is not a new one.  I think it was first proposed during Dubya’s tenure.

Here are my thoughts on what a USA would be from my tax reform recommendations discussed in “The Tax Code Must Be Destroyed” -

“I would replace the current IRA, HSA, MSA, ESA, and Section 529 plan tax-deferred savings accounts with one all-encompassing USA (Universal Savings Account).  ALL taxpayers, without exception, could contribute up to $10,000 per year.  Contributions would be fully deductible and there would be no tax on earnings for qualitied withdrawals. 

Distributions made before age 62 for education costs, medical expenses or to purchase a first home (only one first home per lifetime) would be considered qualified withdrawals.  There would be no penalty on non-qualified withdrawals after age 59½, but earnings would be taxed; all withdrawals after age 62 would be considered qualified.   

While there would be NO taxation of earnings on qualified distributions from the 'traditional' USA, there would still be a required minimum distribution (RMD) beginning at age 72 - but on only 50% of the account balance.  And ALL beneficiaries, not just spouses, could roll-over the entire amount of an inherited account into their own USA and NOT have to take any RMDs until age 72 themselves.  With the ROTH option, all distributions after age 62 would be totally tax free, as contributions were not deductible, and there would be no RMD requirement and no tax on any withdrawals by a beneficiary.

All existing accounts – IRA, HSA, MSA, ESA, Section 529, etc. – would be automatically converted to a USA by the Trustee.  Taxpayers could consolidate individual USA accounts from the same or different Trustees via rollover without any tax consequences.”  

And on the business side -

“All current employer and self-employed retirement plans – 401(k), 403(b), 457, SEP, SIMPLE, KEOGH, etc. - would be replaced by an RSA (Retirement Savings Account).  Employers could elect to contribute up to 25% of wages annually, up to a maximum of $25,000, and all employees could elect to contribute up to $25,000 of wages annually.  There would be no requirements for either to contribute.  There would be 'traditional' (employee contributions 'pre-tax') and ROTH options (employee contributions 'after-tax', all qualified distributions totally tax free, and no RMD requirement).  Self-employed individuals could contribute up to 20% of their adjusted earnings from self-employment, up to a maximum of $25,000.

All existing employer and self-employed retirement accounts would be automatically converted to an RSA by the Trustee.  Taxpayers could roll-over any RSA to a Universal Savings Account (USA).”

And -

“Required Minimum Distributions (RMD) would be required to begin from a 'traditional' RSA at age 72 but based on only 50% of the account balance.    And ALL beneficiaries could roll-over the entire amount of an inherited RSA into their own USA and NOT have to take any RMDs until age 72 themselves.   With the ROTH option, all distributions after age 62 would be totally tax free, as contributions were 'after-tax', and there would be no RMD requirement and no tax on any withdrawals by a beneficiary.”

So, what do you think?

TTFN

IF YOU CAN HAVE A ROTH IRA YOU SHOULD HAVE A ROTH IRA

If you are able to make contributions to a ROTH IRA you should use a ROTH IRA account as your current savings account.

Contributions to a ROTH IRA are never deductible on your federal or state income tax returns.  But earnings on money held in a ROTH IRA account can eventually be totally tax free to both you and your beneficiaries.

Here is what you need to know about a ROTH IRA -

* The maximum amount you can contribute to a ROTH IRA, a traditional IRA or a combination of ROTH and IRA accounts for 2018 is $5,500.   If you are age 50 or older you can contribute an additional $1,000.

* You can contribute to a Roth IRA at any age as long as you have earned income from a job or from self-employment.   You do not have to stop making contributions at age 70½ if you still have earned income.

* The amount of your allowable contribution to a ROTH IRA is phased out and eventually eliminated based on your Adjusted Gross Income (AGI).  The AGI phase-out range for taxpayers making contributions to a ROTH IRA for 2018 is -

$120,000 - $135,000 = Single and Head of Household

$189,000 - $199,000 = Married Filing Joint and Qualifying Widow(er)

$0 - $10,000 = Married Filing Separate

* You can withdraw your contributions at any time without taxes or penalty.  All withdrawals are considered to come from contributions first. 

* You must hold the Roth account for at least five years and be at least 59½ before you can withdraw earnings tax-free and penalty-free.  The 5-year period begins on the first day you make your first ROTH contribution.

* You never have to take any withdrawals from a ROTH IRA in your lifetime.  There are no annual required minimum distributions beginning at age 70½.

As long as you never touch the accumulated earnings on your ROTH IRA investment, and withdraw only your contributions, you can take money from this account at any time over the years without any tax cost.  And your accumulated earnings will grow to a nice retirement nest egg, or legacy for your beneficiaries, if invested wisely.

You have contributed $10,000 to a ROTH IRA over the past couple of years, which has accumulated earnings of $2,000.  You need $5,000, or as much as $10,000, to pay for an extraordinary medical bill, or for needed home repairs, or to pay for your child’s college education.  You can take the $5,000 - $10,000 from your ROTH IRA account without any tax consequences.

Here is another good idea – If your son or daughter has a summer job you should consider opening up a Roth IRA account for him or her.

To qualify for an IRA your child must have earned income — wages or net earnings from self-employment.  Money you give your child for doing chores around the house doesn’t count, but earnings from babysitting or mowing lawns may qualify.

You can contribute 100% of your child’s earnings to the account, up to the $5,500 maximum. If your son earns $2,400 for the summer you can contribute $2,400 to a Roth IRA for him. If he earns $6,500 you can contribute $5,500.

There is nothing in the tax code that says that the money deposited in an IRA for your son or daughter has to come from the child’s funds.  You can use your own money to fund the IRA contribution and let your child keep his earnings.

You can use a Roth IRA to encourage your children to work or to save. If your son earns $5,000 in a part-time job, open a Roth IRA for him.  Or, if your daughter agrees to put $2,500 of her salary from a summer job in a Roth, match it and put in another $2,500.

If you put the maximum into a Roth each year for your 16-year-old from 2018 through 2023, when he/she will turn 21, and no other contributions are ever made, the account could grow to a truly tidy sum (in 6 figures) by the time the child turns 65.

One caveat - there exists a potential problem with opening a Roth account for a child. Once the child reaches the “age of majority,” usually 18, he/she will have full access to all the funds and can “take the money and run.”

One last thing - the earlier in the year you contribute to your, or your children's, ROTH IRA, the more money you will accumulate tax-free at retirement.  So make your 2017 (if not already done) and 2018 ROTH IRA contribution today.

TTFN

A REVIEW OF RECENT TAX DEVELOPMENTS

The week-day daily “Checkpoint Newsstand” from Thomson Reuters recently provided a good summary of some important tax developments that have occurred in the past three months that affect taxpayers, their investments, and their livelihood. 

 

I have provided some of TR’s summary below, with my own wording replacing theirs in several places, and including some of my own personal comments.

 

(1) The Donald T Rump Administration and select members of Congress have released a "unified framework" for tax reform. The official framework document leaves many specifics to be worked out by the tax-writing committees (i.e., the House Ways and Means Committee and the Senate Finance Committee).

 

The “framework” –

 

* Increase the standard deduction to $24,000 for married taxpayers filing jointly, and $12,000 for single filers;

 

* Eliminate the personal exemption and the additional standard deductions for older/blind taxpayers;

 

* Reduce the number of tax brackets from seven to three: 12%, 25%, and 35%;

Increase the child tax credit;

 

* Repeal the individual alternative minimum tax;

 

* Largely eliminate itemized deductions, but retain the home mortgage interest and charitable contribution deductions;

 

* Repeal both the estate tax and the generation-skipping transfer tax;

 

* Provide a maximum 25% tax rate for "small" and family-owned businesses conducted as sole proprietorships, partnerships and S corporations;

 

* Reduce the corporate tax rate to 20% (down from the current top rate of 35%);

 

* Provide full expensing for five years;

 

* Partially limit the deduction for net interest expense incurred by C corporations;

 

* Repeal most deductions and credits, but retain the research and low-income housing credits;

 

* Modernize special tax rules that apply to certain industries and sectors;

 

* Provide a 100% exemption for dividends from foreign subsidiaries; and

 

* To protect the U.S. tax base, tax the foreign profits of U.S. multinational corporations at a reduced rate and on a global basis.

 

As mentioned above, the actual details on these proposals have still not yet been determined.  As it is so late in the year it is, in my opinion, doubtful that substantive tax reform legislation will be passed before year-end.  In any case, I do not expect any legislation to affect the 2017 Form 1040.

 

(2) On September 29, the "Disaster Tax Relief and Airport and Airway Extension Act of 2017" (P.L. 115-63) was signed into law. The Act provides temporary tax relief to victims of Hurricanes Harvey, Irma, and Maria.

 

Relief for individuals includes, among other things, loosened restrictions for claiming personal casualty losses, tax-favored withdrawals from retirement plans, and the option of using current or prior year's income for purposes of claiming the earned income and child tax credits.

 

Businesses that qualify for relief may claim a new "employee retention tax credit" of 40% of up to $6,000 of "qualified wages" paid by employers affected by Hurricanes Harvey, Irma, and Maria (for a maximum credit of $2,400 per employee).

 

In addition to the new law, IRS has granted specific administrative hurricane relief, for example, extending various deadlines, encouraging leave-based donation programs for hurricane victims, and allowing retirement plans to make hardship distributions.

 

(3) On July 28, the Treasury Department announced that it would begin winding down the myRA (my Retirement Account) program—a type of government-administered Roth IRA initially offered by Treasury beginning in 2014. Noting that demand for and investment in the myRA program had been extremely low, Treasury stated that it would phase out the program over the following months.

 

The myRA program will no longer accept new enrollments, but existing accounts will to remain open and accessible, so that individuals could continue to manage their accounts until further notice. Individuals can make deposits, and their accounts would continue to earn interest. Funds in myRA accounts remained in an investment issued by the Treasury Department.  I was personally sorry to see this program go.

 

(4) The government announced a simplified per-diem increase for post-Sept. 30, 2017 travel. An employer may pay a per-diem amount to an employee on business-travel status instead of reimbursing actual substantiated expenses for away-from-home lodging, meal and incidental expenses (M&E). If the rate paid doesn't exceed the IRS-approved maximums, and the employee provides simplified substantiation, the reimbursement isn't subject to income- or payroll-tax withholding and isn't reported on the employee's Form W-2. Instead of using actual per-diems, employers may use a simplified "high-low" per-diem, under which there is one uniform per-diem rate for all "high-cost" areas within the continental U.S. (CONUS), and another per-diem rate for all other areas within CONUS.

 

The IRS released the "high-low" simplified per-diem rates for post-Sept. 30, 2017, travel. Under the optional high-low method for post-Sept. 30, 2017 travel, the high-cost-area per diem is $284 (up from $282), consisting of $216 for lodging and $68 for M&IE. The per-diem for all other localities is $191 (up from $189), consisting of $134 for lodging and $57 for M&IE.

 

(5) Apparently an honest mistake is no excuse for incorrectly claimed advance premium tax credit.  The Tax Court ruled that taxpayers who didn't qualify for the premium tax credit under the Affordable Care Act (Obamacare) because their modified adjusted gross income exceeded 400% of the federal poverty level had to repay all the advance premium tax credit paid on their behalf to their insurer.

 

A sympathetic Tax Court noted that while their state health insurance Marketplace may have incorrectly informed the taxpayers that they were eligible for the credit for 2014, the Court's hands were tied by the Code and regulations. The simple fact was that the taxpayers' income exceeded eligible levels and that they had to repay the advance premium tax credit payments.

 

If you have any questions on how the above developments will affect you I suggest you consult your, or a, tax professional.  You can begin your search for a tax professional at my website FIND ATAX PROFESSIONAL. 

 

TTFN