The Affordable Care Act, commonly known as Obamacare, has changed the way millions of Americans receive health care coverage. This sweeping legislation has undoubtedly helped many gain coverage, but there are still several million people without coverage. Beginning in 2014, those who fail to acquire coverage are subject to a tax based penalty under most circumstances. Will your clients be affected by this tax?

What Coverage Is Required?

According to HealthCare.gov, there is a Minimal Essential Coverage required by the ACA that defines what specific items qualify as adequate health coverage. Some common examples of qualifying coverage include “…individual market policies, job-based coverage, Medicare, Medicaid, CHIP, TRICARE and certain other coverage.”

If your client purchased coverage through a state exchange, HealthCare.gov, or their employer, they have met the minimum coverage amount. Certain older policies also qualify, even if they do not meet newer standards, although this will change in years to come.

What Are The Penalties?

If your client did not have coverage during 2014 (Beginning March 31, 2014,) it is likely they will incur a tax penalty. Per return, your client will pay $95 for each adult and $47.50 for each child, up to a maximum of $285 or 1 percent of household income, depending on the level of income.

The Affordable Care Act stipulates that these rates increase each year, meaning that the same client would owe $325 for each uninsured adult in 2015, and $695 for each adult in 2016. Again these are limited to $975/$2085 or 2%/2.5% of income respectively.

Keep in mind that any lapse in coverage lasting fewer than 3 months does not will not incur a tax penalty for your client.

Get Your Tax Preparer Questions Answered Today!

Obamacare may impact your clients taxes in other, more complex ways as well, depending on income level and other factors. National Tax Office is here to help answer all of your tax related questions, and help your business thrive! Becoming a tax pro has never been easier, and there has never been a better time to own your own business. Get in touch with us and get started in no time!

If you are faced with the decision of whether or not to start your own tax business, it could be helpful to take a closer look at the benefits of doing so. Tax preparation professionals can enjoy a variety of career advantages that aren’t as readily available to experts of other industries.

Career Stability

An important characteristic that many individuals seek in a job is the surety of having a stable career that will provide income and satisfaction. Completing tax preparer training and starting your own business as a tax expert allows you this kind of envied stability. Unlike other industries that are affected by recession problems, taxes are an integral part of living and tax preparers are constantly in demand.

Flexibility

Job flexibility is a great benefit to have because it enables professionals to determine the amount of work they do. The autonomy associated with such decision making often enables people to enjoy their job more and to participate in other activities that are important to them. Preparing taxes is a job that does have considerable flexibility when compared with other jobs.

Monetary Satisfaction

The potential to make a stable income is another incredible benefit associated with tax preparation. Depending on the amount of clients you have, the kinds of clients they are (individuals vs. businesses), and how often you work, you can potentially make a hefty sum of money.

Ability to Help Others

A common reason people choose to get involved in tax preparation is to be able to help other people. Dealing with taxes, returns, and other financial components can be stressful and confusing for someone with no understanding or desire to deal with such issues. A tax professional can assist anyone with their taxes and help them organize essential documents for easy reading and efficient use.

Whether you are seeking a job that is recession resilient, flexible, money making, or of service to others, your decision to start your own tax business can provide you with many incredible benefits. Here at National Tax Office, we have all of the tools and trainings you need to become an expert and turn your dream into a reality.

Characteristics of the Most Successful Tax Professionals

Here at National Tax Office, we pride ourselves on being able to offer the most helpful training and tools for individuals seeking to begin a career in tax preparation. Coupled with the right resources, there are some basic characteristics and skills that will help you achieve your highest potential.

Social and Communication Skills

Perhaps the most important skills for a tax expert to have are social and communication skills. Preparers are constantly working with individuals and businesses to organize annual expenses into readable documents and ensuring all taxes are filed correctly. To facilitate these outcomes, a professional has to be able to communicate effectively and regularly with each client.

Proactive Attitude

A majority of tax preparers enjoy significant career flexibility when compared with other industries. The ability to have autonomy and determine the amount of work you do each day can be incredibly satisfying and rewarding. However, to ensure that work still gets done, the most successful professionals take the initiative to complete all of their work efficiently. This requires a proactive attitude and a desire to work hard.

Integrity and Ethical Observance

Anytime a person is dealing with taxes, financial documents, and receipts, it can be tempting to manipulate the numbers especially if influenced by dishonest clients. The most trusted professionals are those who adhere to an ethical code and maintain their integrity in the face of shady requests from clients. Your decision to follow the rules and operate in accordance with the law could potentially be the difference in a successful career or a failed one.

Contact Us

At National Tax Office, our experts are able to provide any interested customer with the tools they need to begin their own tax preparer business. Our programs give individuals the concepts they need to understand to build a successful company. Used in conjunction with the aforementioned characteristics and skills, you can become an expert in the industry and provide clients with a reliable and efficient service.

What Do Our Taxes Pay For?

At National Tax Office, we believe that the best place to start when opening up your own tax business is to educate yourself on exactly what taxes are, why we pay them, and what they do for us. What good is starting a reputable tax preparation franchise if you can’t tell your customers what their tax dollars pay for? Read on to learn why it’s so important that we pay our taxes every year.

National Defense: Protecting The Country With Your Tax Dollars

Whether or not you’re a member of the military, you’re still helping to protect the country with your tax dollars. Roughly 25% of all income taxes are used to support national defense. Most of that percentage goes towards weapons, supplies, development, and construction, but a portion of it is also used for benefits and salaries for members of the armed services.

Taxes Provide Income Security

Approximately 17 percent of your tax dollars are spent on individuals who are in need, which includes nutritional and food assistance, retirement benefits for federal employees, and Supplemental Security Income.

Tax Money Keeps The Country Healthy

An estimated 23 percent of US tax dollars are used for health care programs. The largest portion is split between Medicaid and Medicare, but the money is also used for health safety, food research, disease control, and public health services. One thing to keep in mind is that the dedicated taxes that workers pay for Medicare out of their paychecks is not included with this amount.

Income Taxes Help To Pay Off Interest

A hefty amount of interest is added to the national debt every year. Even if interest rates are low, roughly eight percent of your income taxes are funneled to yearly interest on the national debt.

Taking Care Of Our Veterans

Nearly five percent of your tax dollars is used for a variety of benefits for veterans. Housing support and income make up almost half of the spending, and health care expenditures roughly makes up the other half. Anything that’s left over is used for training, education, and other benefits for veterans.

If you would like more information about where your tax dollars go, or if you’re interested in learning about tax business marketing or starting a tax preparation franchise, get in touch with a National Tax Office representative today.

Do you want to start working as a tax preparer but can’t find the right time? If you think that the idea of starting your very own tax business sounds appealing and profitable to you, don’t delay – take the plunge right now!

The most common mistakes that most people make when they decide a career as a tax preparer is that they start in fall and think that everything will be set up and ready by January. However, the thing is if you start early you will have a better chance of getting more customers and earning more profits down the road.

Most tax preparers fall into the trap of timing and wait till autumn to set their tax business. While you may think that July is way too early to start thinking about your tax business, the truth is, if you want to make your tax business lucrative and successful from day one, starting out early in summer is your best bet.

For starters, registering for your PTIN and EFIN and getting hold of propertax software may take longer than you realizeand if you put off these necessary preparations till say September, you can lose out ona lot of customers because of your lack of planning. Taking these steps now and getting armed with all the information you need will put you months ahead of your competition and also give you a chance to promote and advertise your services and build a positive footing in the market. Focusing on the important tasks and preliminary steps now will also give you more time to take care of your customer needs tomorrow and increase your chances of getting repeat clients and positive referrals.

Do you plan on starting your tax business or have already made the plunge? What steps did you take before starting up? Share your experience with us.