New Year Brings New Rules, Penalties Under Affordable Care Act

VIRGINIA BEACH, VA--(Marketwired - Dec 30, 2014) - Liberty Tax, Inc. (NASDAQ: TAX)

The New Year will ring in new health insurance rules for businesses and bigger tax penalties for the uninsured under the Affordable Care Act (ACA). Liberty Tax Service understands the impending changes and is ready to help those affected weigh their options and make the best choices for 2015.

"The Affordable Care Act can be like a moving target for most taxpayers," said Chuck Lovelace, Vice President of ACA for Liberty Tax Service. "With the new year and the new tax season, we anticipate serving many customers who are still confused about their requirements under the law and who need our help moving forward into 2015."

Starting on January 1, businesses with 100 or more full-time or full-time equivalent employees are expected to offer health insurance coverage to at least 70 percent of their employees. To meet ACA standards, the insurance must provide minimum essential coverage. Businesses that do not offer such coverage may be required to pay a penalty.

Individuals who do not have insurance in 2015 and do not have a coverage exemption will pay the greater of these two penalties:

• 2% of annual taxable household income, with a cap at the national average premium for a bronze plan in the health insurance Marketplace;
• $325 per person and $162.50 per child under 18, with a cap of $975 per family.

For a family of four (two adults, two children under 18) with an annual taxable income of $70,000, the penalty would be $1,400. 

Liberty Tax Service has health insurance agents available at many of its offices who can assist individuals in enrolling in coverage or applying for coverage exemptions. These agents can also help small businesses with 50 or fewer employees choose the right insurance option for their business. Businesses with 25 or fewer employees may be eligible for tax credits when they provide employee health insurance coverage.

Along with health insurance, Liberty Tax Service is ready to assist clients with tax preparation services. The 2015 tax season is the first to include ACA tax forms and other paperwork that demonstrates whether a taxpayer has health insurance coverage or a coverage exemption or if he or she must pay a penalty when they file their taxes.

Liberty Tax Service has a team of certified tax preparers who understand ACA rules and will work with health insurance agents to make the merger of health insurance information and income tax preparation a seamless process for customers.

About Liberty Tax, Inc.
Founded in 1997 by CEO John T. Hewitt, Liberty Tax, Inc. (NASDAQ: TAX) is the parent company of Liberty Tax Service. Liberty Tax is one of the fastest-growing tax preparation franchises and has prepared almost 18 million individual income tax returns in more than 4,400 offices and online. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax, and are all backed by the tax professionals at Liberty Tax locations and its nationwide network of approximately 35,000 seasonal tax preparers. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor for many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.