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Thread: US Senate Budget Commitee confirms Self-Employed Obamacare Penalty Tax Due Now !

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    Default US Senate Budget Commitee confirms Self-Employed Obamacare Penalty Tax Due Now !

    from

    (snip)The IRS requires self-employed business owners to file annual returns and pay estimated quarterly taxes. When entrepreneurs like Mr. Drudge file their 2014 first quarter taxes, they have to pay the individual health care mandate if they are not getting Obamacare coverage.

    The IRS form also allows adding the mandate to the section labeled “other taxes,” hence Mr. Drudge’s chosen name “Liberty tax.”

    A Senate Budget Committee aide told Breitbart News, “It is true that thousands of small businesses will be forces to pay Obamacare taxes quarterly in 2014.”(snip)

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    Default Re: US Senate Budget Commitee confirms Self-Employed Obamacare Penalty Tax Due Now !

    My business was exempted from ACA compliance for a year, along with most other businesses. However, our health plan administrator is saying that we may have a "non-compliant" plan. The regulations are in flux so we do not know what exactly will happen. On my personal tax return, I take most of my compensation as a dividend. Those dividends are subject to withholding. However, I am still required to prepare a quarterly estimate worksheet and if I expect to owe more than $1,000 I have to pay a quarterly estimate. On line 12 of the worksheet is the infamous "other taxes" line. Because I hope our insurance plan will be accepted under the ACA, I am not adding any additional amount on line 12 for that contingency. If I am wrong, then I may very well get hit with the underpayment penalty. Every quarter, I have to re-evaluate my position. In my last quarterly payment of 2014, I may throw a big number on line 12 and send the Treasury a big check. I am hoping that the rules clarify in the next few months.

    Z

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